I still don’t get after decades of seeing how our government works, people still think there is one single “silver bullet” catastrophic/apocalyptical, earth shattering new tax law change forced by the government will drastically adversely affect home prices. It’s like some folks are desperately hoping for an apocalypse in order to be able to obtain home ownership.
I see the only way we get an huge housing correction is if the government implements policies that enables the most vile and financially irresponsible debauchery from the a majority of the financially irresponsibles in this country….And that happens when the government provides the necessary financial tools for your average financially irresponsible person in this country to hang themselves on their own financial noose. Government doesn’t need to “force” anything on people to cause them financial distress…Given tools, people in this country are fully capable of doing it to themselves…
The best way to ruin people financially is to allow people spend like drunks and for them to commit financial suicide themselves, by giving them the illusion they have more money then they really do, and can spend more money than they really should without any consequences….Passing more unfavorable tax laws that reduces income probably has the opposite effect, as it would piss off your average American, and they would be more watchful/defiant and not act/do financially irresponsibly. , they’ll take on more work for more income, they’ll cut corners elsewhere in their budget, they’ll cheat on their taxes, they’ll do everything to remain defiant. They won’t go down, out of spite. But extend a credit line to them, yeah they’ll blow it.
It’s like getting people financially drunk such that that don’t make very good decisions. We’re not there yet. Short of a restart of irresponsible borrowing where irresponsible americans who otherwise has no business buying a home, can once again borrow money they really can’t afford to pay back, to buy a home they really can’t afford, I don’t see a massive correction. Why would the majority of the home ownership among the stronger financial hands right now feel compelled to sell right now? They got in at the lowest rates, lowest payments, in many cases, lower than rent…And especially if we have any meaning inflation, their 30 year locked in payment was look like a walk in a the park…..
