In a city where supply is already severely constrained and demand is through the roof, the geniuses in San Francisco government have decided to make the problem even worse by offering first-time home buyers a $200,000 loan to make a down payment. 

Ignore every other bad aspect of this program and just focus on the supply-demand issue. We know that demand for housing is insane because that’s what drives home prices to be unaffordable to the middle class (and housing supply in California is generally severely constrained). Now, the mayor has increased demand further by effectively subsidizing the down payment process. Why would you ever think that this would help!?!?!?!?!

At least the Yahoo! Finance readership mostly gets it. 

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What this policy probably does, however, is get you reelected. You’re effectively buying votes from people who think you’re giving them a handout (or helping hand) when the policy is actually very harmful to them. 

-JD Cross