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To: Sgt_Schultze
RE :”Sorry, but housing prices are exactly where they need to be(ie not fall any more). Think for a minute, who profits most from high property costs? Local and state governments do.

Are you kidding? If you want higher state and local taxes just tell your local elected to raise them. Government Propping up house prices artificially nationally (using printed money yet) hurts home buyers and is a bad way for you to keep your local tax rates high.

26 posted on 02/25/2009 5:11:25 AM PST by sickoflibs (Keynesian Economics : "If you won't spend your money WE WILL!")
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To: sickoflibs

I’m not lobbying for high house prices or higher local taxes. I’m just telling you why housing prices won’t drop to where they were 13 years ago as stocks have. If the bond rating agencies found that states could not rely on a continuing stream of high property taxes, the muni bond ratings would sink and borrowing costs for states would skyrocket. We would get higher other taxes then, and the politicians would be in jeopardy.


29 posted on 02/25/2009 5:32:26 AM PST by Sgt_Schultze (Government employment exists to provide a middle class lifestyle to otherwise, unemployable people)
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