Originally Posted By vbdad55 <>>if you want to push even more people into bankruptcy and completely shut down the housing market and all biz assoc with it - then go ahead. << That's exactly what needs to happen.< really ? If the housing market collapses - turn of the lights -the parties over...this will be a different place to live - and not for the better. Sorry, I surely do not want to see that
Originally Posted By gottaluvdavillains <<That's exactly what needs to happen>> California as a whole couldn't afford for that to happen. While I agree the housing market got out of control - punishing those who didn't buy out of their price range or overly taxing those who because of the mass layoffs around just the bay area now just have one person working... will not help the country as a whole. Why not go after those who don't pay taxes. Why not adjust the taxes to be more fair. Why not reexamine some of the loop holes some of the richer people use and see why it is many of the rich don't pay their fair share. In many parts of Ca you have people on welfare, illegal residents, legal residents unable to find a job. Maybe it's time to look at the service offered to all groups. Rich, Poor, and in the middle. Bankrupting a state that has a bigger economy than most of the world is not a way to save the country - in my opinion. I have no problem putting in my fair share as long as everyone else is held just as accountable.
Originally Posted By mawnck >>really ? If the housing market collapses - turn of the lights -the parties over...this will be a different place to live - and not for the better.<< Yep. >> Sorry, I surely do not want to see that<< You will. Can't be avoided. Only postponed, and that will make the inevitable crash worse. This is not a future tense thing. We have already done it to ourselves. I'm hoping that Obama understands this, and just doesn't want to cause a panic, hence won't talk about it. But his actions seem to indicate that he doesn't understand it at all. >>While I agree the housing market got out of control - punishing those who didn't buy out of their price range or overly taxing those who because of the mass layoffs around just the bay area now just have one person working... will not help the country as a whole. Why not go after those who don't pay taxes. Why not adjust the taxes to be more fair. Why not reexamine some of the loop holes some of the richer people use and see why it is many of the rich don't pay their fair share. << All of those things will need to be done - if the state government is still sufficiently solvent to do them. If they can't sell their bonds, then it'll be moot.
Originally Posted By SingleParkPassholder "You will. Can't be avoided. Only postponed, and that will make the inevitable crash worse. This is not a future tense thing. We have already done it to ourselves. I'm hoping that Obama understands this, and just doesn't want to cause a panic, hence won't talk about it. But his actions seem to indicate that he doesn't understand it at all." Or, he simply doesn't agree.
Originally Posted By mawnck >>Or, he simply doesn't agree.<< He'd better. Not even Presidents can argue with basic mathematics.
Originally Posted By vbdad55 I don't think he agrees and neither do I. I do believe there are people in homes they will never be able to afford -4.5% interest rate or not, and that separation should happen soon. I also believe there are many many more who can afford them with a decent interest rate( and not a TAX increase )- good credit scores - pay their bills on time etc.- that would be driven out with major tax increases - that is wrong what hurt was the bullcrapper inflation of homes in places like California -where my friend buy a $500k home in Irvine and the home becomes $1.3 in6 years. Now that's bull - and that is a major part of the illusion. People who bought high there are screwed - yes. But understand most parts of thecountry did not see that fantasy. I live in a town that has been in top 5placestolivein Money mag for 5 years running- much above median incomes and homes - but inflation of homes equalled homes doubling in 20+ years - not 5 or 6- and demand is/was very high. Many people who bought here (and places like this ) did not buy smoke and mirrors and a major tax increase would kill them the housing industry can be saved - but yes - those who saw runaway inflation - will see reality before it is fixed also.
Originally Posted By mawnck >>Many people who bought here (and places like this ) did not buy smoke and mirrors<< The trouble is there aren't enough "places like that." The situation in California and other such areas, coupled with credit card debt and commercial real estate, is more than enough to guarantee a financial downturn far worse than we're seeing now. At least 30% of our GDP is bubble, gassed up by bad loans that can't possibly be paid back at current pay scales, and the gas has run out. There's no way to go but down, regardless of what local housing markets are experiencing. I'm not encouraging tax increases either. I'm encouraging the US Government to stop throwing itself in front of the runaway train, because someone's got to be there to deal with the wreckage.
Originally Posted By Mr X ***if you want to push even more people into bankruptcy and completely shut down the housing market and all biz assoc with it - then go ahead.*** Well, it's not my call and I'm not advocating for it (it would certainly mean political suicide for the Prez Elect, for one thing...). I just said it wouldn't surprise me.
Originally Posted By fkurucz << If the housing market collapses >> That train already left the station.
