By Chuck Ring (GadaboutBlogalot ©2009 – 2010)
Quote Freely From The Article – Leave The Pseudonym Alone
In an article from yesterday’s USAToday, the government and their ilk speak to us like we are sap citizens. While it seems that they are just now understanding why and how our housing market has gone to hades in a hand-basket, ordinary folks have known since our progressive government components started and then expanded the “no house left unoccupied programs.” In the referenced article, Paul Wiseman writes:
Just how much should Uncle Sam do to help Americans buy their own homes?
For 70 years — and for the last 15 in particular — the answer has been: Whatever it takes.
Now, policymakers are pausing to reconsider. In the next few months, they’ll weigh whether there can be too much of a good thing when it comes to helping families finance the American Dream.
The government scamming of people into buying more home than they can afford is a tragedy that has crumbled home ownership plans for millions of Americans. I say government scamming because the government regulatory agencies that should have watched were AWOL and some have since been dishonorably discharged. But, not before the wolves of the predatory lending market tore chunks from the buttocks of our government and ripped the hearts out of betrayed homebuyers who could not afford the home they were neatly and unethically locked into.
There were warning signals or outright clown-hammers over the heads of our congressional leaders who refused to admit that Fannie Mae and Freddy Mac were in deep bull ballast. Representatives Frank and Dodd are two of the major FAILS on the housing fiasco. A fiasco which led to the start of financial collapse in this nation. The article places partial blame on tax breaks and guarantees, but unless they are talking to the tax breaks and guarantees granted to financial institutions, the blame is misapplied. Of course unscrupulous lenders, appraisers and real estate agents and brokers share much of the blame, but the major share comes from unqualified buyers who were allowed to buy into the American dream destined to become a nightmare. This nightmare was enabled by a careless government. I am all for widespread home ownership, but homebuyers should not be allowed to buy what they can never pay for, given their income and potential earning power.
The so-called planners seem willing to take away or seriously consider taking away the backbone (at least critical vertebra) from the attraction of home ownership:
Other critics say eliminating or overhauling Fannie and Freddie isn’t enough: The government must reconsider such bedrocks of housing policy as the mortgage interest deduction and the tax exemption of most capital gains from home sales.
They say these misguided or outdated government policies encourage the United States to massively overinvest (sic) in housing, shortchanging (sic) other parts of the economy. “There’s only so much subsidy to go around at the end of the day,” Katz says.
If their remedy calls for abolishing either “subsidy” as they term it, they will create a major dis-incentive to home purchasing. Capital gains taxes are among the most regressive taxes for the middle-class and the abolition of income tax credits amount to a substantial tax increase to anyone who is able to use home ownership to help reduce taxes. If the government takes away income from the citizen and applies it to some progressive or other misguided program or programs, there will be no surplus income for the homeowner to purchase goods and service or with which to invest in stocks or bonds.
The rest of the article by Wiseman is fraught with unchecked theories and suppositions espoused by “experts” and new gurus. As an old fellow and a homeowner, I can’t afford much more speculation, and untried and potentially untrue government experiments. In simple and concise words … I ain’t buying that.
Fool’s Gold Anyone?
Here’s the rest of the article .