Silicon Investor (SI) -- The First Internet Community

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 -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (12674)	8/20/2003 12:41:23 AM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 306849

I'll bet if you went down to their neighborhood of million dollar homes and actually looked at the services that these elderly people use- it will greatly exceed any taxes they have paid for years. I'm talking about state funded vans to the local healthcare centers and things like that. Reminds me of a Simpsons episode I saw once... the grandfather goes into a bank and says... I'm OLD! Gimme Gimme!! <gg>

To: Elroy Jetson who wrote (12674)	8/20/2003 1:43:39 PM
From: Wyätt Gwyön	Respond to of 306849

Psychologists say only people who see themselves as victims can become true monsters i think it is pretty well established now that California has no shortage of morally repugnant rich crybabies benefitting from tax welfare. what we seem to have here is a tragedy of the commons, where each party cares too much about their own benefit to make concessions required to sustain the system as a whole. so the question to my mind is, if the property tax system cannot be reformed due to selfish opposition from the current beneficiaries, what happens? is a state default inevitable? if, as you say, a state default would lead automatically to widespread municipality defaults, wouldn't this be the biggest financial meltdown in many decades, perhaps since the Depression? ironically, it seems such a meltdown would inevitably bite the current Prop 13 beneficiaries in the ass through vastly reduced RE prices. i would really like to know how likely a default is. perhaps some of the more egregious aspects of Prop 13--such as the tax breaks for nonresidents, could be eliminated. but is that enough to begin to plug the budget shortfall, and if it were (meaning billions in extra revenue), how could this not have an impact on housing, as surely supply will be dumped on the market in the wake of much higher taxes. what are the other options? how long will the stopgaps work? CA already has very bad debt ratings--without more issuance, what source do they have besides raising revenue and cutting costs? seems like something will come out of everybody's hide.