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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (17156)	11/30/2004 2:44:59 AM
From: Jim McMannis	Respond to of 116555

I would think that would be more tied to the stock market than housing unless they let you you invest in houses in your private SS fund. OTOH, if the stock market tanks because of the housing market then yes that puts a damper on SS privitization. Then again, the NASDAQ is low compared to the year 2000. It's really housing that's vulnerable. That said, I really think that the gov. will pull out all the stops to support real estate until the bitter end. The only way I see the 500k cap gains rate taken away is if they trade it out for letting you take a capital loss on real estate. And for that to happen people would have to be facing significant losses in RE. A lot of people don't know they can't take a capital loss on it. I don't see the mortgage interest rate deduction taken away even though it certainly DOESN'T promote home ownership because housing prices simply adjust up to it. And it's available on second homes. That takes some of it's potential effectiveness away as well. If would be interesting to see a flat tax (no-deductions) be discussed again. You'd see who the special interest groups are that benefit from it. It's been said that 50% of the price of real estate is due to tax breaks. And that was before the latest run up.