Cutting the Deficiet

Housing prices need to fall back to where they were prior to all of this subprime, easy money scam. What makes a townhouse (rowhome) in powdunk, usa worth 250,000? Who can afford that? Most certainly not the average working stiff even though these rowhomes are designed with them in mind. My wife and I both work and I know I couldn't afford a quarter million dollar mortgage. Housing prices hyper inflated the last 6 years just like oil did. Now that the easy money scam has been shown for what it was, a scam, housing costs will seek the level of their true value.

I watched a good show last night on CNBC about the subprime mortgage mess. I think it was called 'House of Cards'. Not even Allen Greenspan fully understood how these mortgages were packaged. His words were "it befuddled me."

jpete wrote:

billlindley wrote:

jpete wrote:The rich can afford to buy stuff in other countries. Hell they can afford to leave the country. And if there is a 20% tax on everything, you wouldn't come close to paying for government. Try doubling that. Why not cut the government to a Constitutioal size? Nah! What am I thinking? If we didn't have government how would I know how to wipe my backside?!

This is one way to save the housing market. Tack on a 20% tax on home sales and you may just get the final sales price, in some areas, back to what it used to be. Now that wouldn;t be equity or anything but in this enviornment you have to think positive.....


This is simple, uneducated Bill talking. I know it wouldn't really help

How is making an already overpriced product more expensive going to fix things? The problem with the government action so far is that they are not allowing prices to fall to where people can afford them.

Isn’t everyone “entitled” to own a home they can’t afford with a mortgage they couldn’t qualify for and then sell said home for a profit 1 year after they bought it? I thought that’s what all this bailing out homeoweners and reworking mortgage’s was all about.

By the way, I agree with you I was making an attempt at soe humor with my earlier statement.

Black_And_Blue wrote:What's a dollar really worth?

It's a claim on future labor.

How much labor will it take to pay back 65 Trillion Dollars?

(The American public is largely unaware that the true deficit of the federal government is already measured in trillions of dollars, and in fact its $65.5 trillion in total obligations exceeds the gross domestic product of the entire world.)

It wont take very much labor since it will be inflated out of existence. In Germany they could not print the money fast enough so they resorted to only printing one side. Thanks to modern technology we can now do it with a few taps of a computer key.

Richard