Replies

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)

To: Sgt_Schultze

RE “ 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.”

You are saying federal officials are propping up house prices with massive debt to keep local property taxes high? .

Capital gains taxes on stocks plummeted, they didnt push stock prices higher with borrowed money to keep tax revenues coming in. Except GM.

31 posted on 02/25/2009 5:50:51 AM PST by sickoflibs (Keynesian Economics : "If you won't spend your money WE WILL!")

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