The solid economic growth myth of the past few years is republican crap talking points( Hannity still repeats this on his show) . It was a fake asset bubble based on debt. There is no way you can have house prices rise (with debt) as fast as they did and not expect a disaster. That huge housing industry required an endless flow of legal and illegal imigrants to buy the houses and build them, not to mention foreign capital(since we dont have any) . It was obvious something was very wrong but as long as people saw the their house appraisals get bigger no one would ask questions. Now it crashed and it's point fingers time, but Bush as president is the last guy without a chair, and we republicans have to pay for it (Pelosi and Obama , UGGG) . The party is over and socialism is here.
People were moving every two years - making much more than you could make in stocks because of the tax advantages. Then the "flippers" got in on it - most of them "shoeshine boy" types who had no idea the houses weren't going up because of their wonderful "improvements".
I was in some of those houses - and didn't have the heart to tell some of those people that their big gain was because of the bubble - and not because they did such a great job putting new white tile in the kitchen...
I believe those original tax changes were done under the Clinton administration. Bush also got on board with it - refinements.
Or course the banks got in on it with more legislation to facilitate the mess - with their "2 payments and you can sell the loan" stuff. It's all sociopath scam stuff done on a very sophisticated level...
God help us - it's worse than anyone can imagine. ( And yeah, we'll have up times - maybe a year - maybe two - but the piper will be paid.)
Some of the things that contributed:
Tax laws were changed so gains on homes didn’t count as long as you had lived there for at least 2 years. And the cap on home profit was high ...
People were moving every two years - making much more than you could make in stocks because of the tax advantages. Then the “flippers” got in on it - most of them “shoeshine boy” types who had no idea the houses weren’t going up because of their wonderful “improvements”.
I was in some of those houses - and didn’t have the heart to tell some of those people that their big gain was because of the bubble - and not because they did such a great job putting new white tile in the kitchen...
I believe those original tax changes were done under the Clinton administration. Bush also got on board with it - refinements.
Or course the banks got in on it with more legislation to facilitate the mess - with their “2 payments and you can sell the loan” stuff. It’s all sociopath scam stuff done on a very sophisticated level...
God help us - it’s worse than anyone can imagine. ( And yeah, we’ll have up times - maybe a year - maybe two - but the piper will be paid.)