The Residential Real Estate Crash Index Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Perspective who wrote (240290)	3/8/2010 12:35:48 PM
From: ChanceIs	Read Replies (2) of 306849

>>>In many ways, it would reset the incentive system in our country back to where it belongs. <<< I have written before that as a society we need to review the entire concept of debt and equity. The government has always set a strong example - albeit mostly the wrong one. Hey!!!! The government has run a budget deficit since 1957 - why shouldn't I?? They know whats best and have it all under control. Most religions have strong positions on debt. One might argue that the government's strong stance in favor of debt establishes a religion and therefore violates the separation clause. The government reviles equity building - taxes the daylights out of you when you succeed - or become less dependent upon the government. Why??? Beats the hell out of me. Control freaks I suspect. Why not put 60% down on a house? Why have a mortgage interest deduction? Why not pay cash for a car? I always have. (I have never had a new car. Love my used Mercedes diesels. Buy them when they are ten years old and drive them for ten.) The way I figure things on a societal basis, the difference between being financially independent (owning all your needs - eg house w/o debt, enough to survive off the earnings) and being maxed out on debt (current situation) is about 70 years. Stated differently, we have pulled forward demand by 70 years. Note that this is kind of a parabolic concept - centered about the "Y Axis.". When you have a lot of equity - you are in the right half plane and as you go out the X Axis things get better and at an increasing rate. But when you are in debt, the opposite occurs. All of these pundits keep pointing out how the government interest claim on GDP is rising so quickly, its short duration, and what happens if rates go up by just a tick. This is fundamental. So .... like...ummm....why don't we get a new religion, and pay people to accumulate equity, and tax the living s*&t out of them if they take on debt. You know - make the payer of interest (the debtor) pay the tax on the interest instead of the creditor. Hell, the government gets the same take, and the fruitcakes would be forced to think long and hard before getting out the plastic.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next