Re: Oil Shock: Analyst Predicts $7 Gas, "Mass Exodus" of U.S. Cars

On Jul 14, 4:28 pm, hanco...@xxxxxxxxxxxx wrote:
On Jul 14, 2:48 pm, Rich Piehl

<rpiehl5REMOVETHIS...@xxxxxxxxxxxxxxxxx> wrote:
Continuing your thought here I would say that it is related to the fact
that in the late 40's/50's people paid cash for virtually everything
except for their house and maybe their car.  If they couldn't pay cash
they wouldn't buy it

Actually back then, among lower income people there were plenty of
time- payment or installment plans for big ticket items like
appliances and furniture.  The interest charges were steep but hidden
in the payment plan.

Now people have financed everything, including much that would be
considered extreme luxuries reserved for only the wealthiest 40-50 years
ago.  

That is true, unfortuntely.

But, again, I must point out that no one was threatening anyone to take
out those mortgages.  And, in spite of what has been said in this
thread, many of those mortgages were taken out by middle class college
educated people who fully understand the concept of an ARM and the fact
that there is no such thing as free money.  

As mentioned, I do feel sympathy for low-educated people who got
duped.  (I'm thinking of a pizza cook and his waitress girlfriend type
of people).

However, I have no such sympathy by college educated people in that
position; they should've known better, and if they lose their house
and their credit, so it goes.  I don't want my tax money bailing them
out.

here's the problem.

If the idea is to "help" people then here's what you do:

1. - you restrict the mortgage "incentives" INCLUDING the tax subsidy
to ONE House that You MUST Live in

2. - you must prove that you need the benefit by means testing...

3. - if you sell the house - you owe the incentives back

what you don't do:

1. - let folks buy multiple homes using the incentives

2. - give the incentives to those that certainly don't need them

3. - you don't allow people who are buying and selling properties as a
business - to use the incentives and subsidizes to fatten their bottom
lines...

In other words -you restrict the incentives to help those that would
not otherwise be able to own a home - LIKE the Veterans benefits.

What we (the US) did.. here was the SAME THING we did with the Savings
and Loan debacle... we basically provided Government incentives and
insurance for ... speculation...

... and now.. we are going to take taxpayer dollars to reward those
that speculated.

We make the same mistake over and over. We establish an incentive or a
subsidy to "help" some segment of the population ..and then we let it
be co-opted and used by those who should not qualify... for their own
speculation.

we put the foxes in charge of the henhouse... then we act surprised...
.

Relevant Pages

  • Re: Oil Shock: Analyst Predicts $7 Gas, "Mass Exodus" of U.S. Cars
    ... that in the late 40's/50's people paid cash for virtually everything ... except for their house and maybe their car. ... - you restrict the mortgage "incentives" INCLUDING the tax subsidy ... Where we got ourselves in trouble is the government meddling in things better left to the private sector. ...
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  • Re: Home sales in Las Vegas
    ... highlighted give-aways by the developers. ... This way they don't affect the selling price. ... builders will offer to build a new house at the selling price and give ... along it gets they offer more and more incentives. ...
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  • Inside dealing?
    ... I'm considering buying a new home in Texas. ... incentives on the house, but even then the house is kind of expensive. ... unless we used a Realtor. ...
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  • Re: Inside dealing?
    ... incentives on the house, but even then the house is kind of expensive. ... we want to negotiate some more off. ... The salesman said his company ...
    (misc.consumers.house)