Housing Bill Showdown
Opposition from the White House isn’t going to stop the $25 billion Housing Bill from passing the Senate. And the measure, which could include tax breaks for homebuilders and lenders as well as credits for homebuyers, is likely to get even more spending tacked onto it by the House.
But anytime Congress throws something together on the fly, Karen Finerman gets nervous. “Nothing good can from it,” she said, but that doesn’t mean there isn’t a way to profit from it.
While tax credits are a “terrible idea,” according to Finerman, the homebuilders are sure to benefit if the bill becomes law. It should be good for GSEs like Fannie Mae and Freddie Mac too, she said.
Jeff Macke agreed that the bill is bad policy, mostly because it was created so quickly (these government-sponsored measures to address the economy should move “glacially slow,” he said). Nevertheless, he thinks Fannie Mae is a buy if it passes.
Guy Adami went the retail route and recommended Home Depot .