Why is it that in earlier decades we didnt have all this mass conundrum with mortgage foreclosures and sky high real estate prices? The artificially overpriced homes plus the big taxes to maintain them are putting a kabosh on the economy for so many.
There are currently some very good deals out there, with once in a lifetime low rates for 30 year mortgages, but no one has, or wishes to spend, what bucks they have saved up, because the entire system is teetering, with the US govt f rom top down having no effin idea of how to stimulate growth.
Their answer to everything is MORE TAXES.
“Why is it that in earlier decades we didnt have all this mass conundrum with mortgage foreclosures and sky high real estate prices? The artificially overpriced homes plus the big taxes to maintain them are putting a kabosh on the economy for so many.”
The cause of the overpriced homes is the sad but simple truth of “free money.” The interest rates were so LOW that it created the equivalent of free money that people used to bid up prices on homes. Most lay this at the feet of Alan Greenspan. It is a part of this puzzle, but not all of it. The other part was that banks were making easy huge bonuses on selling these mortgages as securities, CDS. So, because the banks were REselling these mortgages, what did they care that the loans were bogus pits of lies?? None. This allowed the whole housing boom with the adds on furniture, and remodels, etc to grow and make America look like she was doing well, when she was really rather sick. The cure is killing the patient.