[patientrenter]

[quote=CONCHO]…..Don’t forget the state governments. What would they do if property taxes suddenly plunged as house values reduced 50%? And don’t forget the banks. What would happen to them if they had to realize 50% losses on their mortgage portolios? The baby boomer homeowners are only a small (and not very influential) part of the pressure to keep home prices high…..[/quote]

Any very powerful and successful political movement (like the movement to keep home prices high) typically depends on two key factors, not just one:

1. A core group of people who have a lot at stake, and a lot of money. They drive the lobbying of the pols.

2. A wide group of voters committed to the cause. Even a stinky rich lobbyist isn’t going to be able to pull off a massive and broad redirection of a dozen Congressional committees and dozens of federal agencies. You need a large group of voters (and journalists etc pandering to them).

[patientrenter]

[quote=CONCHO]…..Don’t forget the state governments. What would they do if property taxes suddenly plunged as house values reduced 50%? And don’t forget the banks. What would happen to them if they had to realize 50% losses on their mortgage portolios? The baby boomer homeowners are only a small (and not very influential) part of the pressure to keep home prices high…..[/quote]

Any very powerful and successful political movement (like the movement to keep home prices high) typically depends on two key factors, not just one:

1. A core group of people who have a lot at stake, and a lot of money. They drive the lobbying of the pols.

2. A wide group of voters committed to the cause. Even a stinky rich lobbyist isn’t going to be able to pull off a massive and broad redirection of a dozen Congressional committees and dozens of federal agencies. You need a large group of voters (and journalists etc pandering to them).

[patientrenter]

[quote=CONCHO]…..Don’t forget the state governments. What would they do if property taxes suddenly plunged as house values reduced 50%? And don’t forget the banks. What would happen to them if they had to realize 50% losses on their mortgage portolios? The baby boomer homeowners are only a small (and not very influential) part of the pressure to keep home prices high…..[/quote]

Any very powerful and successful political movement (like the movement to keep home prices high) typically depends on two key factors, not just one:

1. A core group of people who have a lot at stake, and a lot of money. They drive the lobbying of the pols.

2. A wide group of voters committed to the cause. Even a stinky rich lobbyist isn’t going to be able to pull off a massive and broad redirection of a dozen Congressional committees and dozens of federal agencies. You need a large group of voters (and journalists etc pandering to them).

[patientrenter]

[quote=CONCHO]…..Don’t forget the state governments. What would they do if property taxes suddenly plunged as house values reduced 50%? And don’t forget the banks. What would happen to them if they had to realize 50% losses on their mortgage portolios? The baby boomer homeowners are only a small (and not very influential) part of the pressure to keep home prices high…..[/quote]

Any very powerful and successful political movement (like the movement to keep home prices high) typically depends on two key factors, not just one:

1. A core group of people who have a lot at stake, and a lot of money. They drive the lobbying of the pols.

2. A wide group of voters committed to the cause. Even a stinky rich lobbyist isn’t going to be able to pull off a massive and broad redirection of a dozen Congressional committees and dozens of federal agencies. You need a large group of voters (and journalists etc pandering to them).

[patientrenter]

“Well I’m sorry but it was my impression that the unfettered and unregulated market was the one that got us into this mess.”

I think political partisans on one side like to point to govt intervention as the source of all the problems, and partisans from the other side like to point to the lack of govt intervention as the source of all problems.

I think we had a lot of things going on:

1. Excess savings imported into the US from China and some oil exporting countries via US trade deficits with those countries

2. Cowboy activity in the private investment world recycling the extra dollars into high risk debt disguised as AAA debt

3. Baby boomers saving virtually nothing for the last 30 years, but expecting long and luxuriant (and medically expensive) retirements on the back of nothing but asset price inflation, not the production of more goods and services over their working lifetime than they consume

A few well-timed and well-placed actions could have made a big difference. Hitting hard against the whole collapse in home loan underwriting standards would have helped. Yanking the FNM, FRE, FHA etc govt supports from housing finance would have made a real difference. It would help a lot now, too, but we seem to have the stomach only to point at symptoms, or more minor causes. We really don’t want to truly deflate the housing bubble. That would PO the baby boomers, big-time. There’s only one thing that will get people more excited than the chance of getting a free lunch, and that’s the chance they’ll lose a free lunch.

[patientrenter]

“Well I’m sorry but it was my impression that the unfettered and unregulated market was the one that got us into this mess.”

I think political partisans on one side like to point to govt intervention as the source of all the problems, and partisans from the other side like to point to the lack of govt intervention as the source of all problems.

I think we had a lot of things going on:

1. Excess savings imported into the US from China and some oil exporting countries via US trade deficits with those countries

2. Cowboy activity in the private investment world recycling the extra dollars into high risk debt disguised as AAA debt

3. Baby boomers saving virtually nothing for the last 30 years, but expecting long and luxuriant (and medically expensive) retirements on the back of nothing but asset price inflation, not the production of more goods and services over their working lifetime than they consume

A few well-timed and well-placed actions could have made a big difference. Hitting hard against the whole collapse in home loan underwriting standards would have helped. Yanking the FNM, FRE, FHA etc govt supports from housing finance would have made a real difference. It would help a lot now, too, but we seem to have the stomach only to point at symptoms, or more minor causes. We really don’t want to truly deflate the housing bubble. That would PO the baby boomers, big-time. There’s only one thing that will get people more excited than the chance of getting a free lunch, and that’s the chance they’ll lose a free lunch.

[patientrenter]

“Well I’m sorry but it was my impression that the unfettered and unregulated market was the one that got us into this mess.”

I think political partisans on one side like to point to govt intervention as the source of all the problems, and partisans from the other side like to point to the lack of govt intervention as the source of all problems.

I think we had a lot of things going on:

1. Excess savings imported into the US from China and some oil exporting countries via US trade deficits with those countries

2. Cowboy activity in the private investment world recycling the extra dollars into high risk debt disguised as AAA debt

3. Baby boomers saving virtually nothing for the last 30 years, but expecting long and luxuriant (and medically expensive) retirements on the back of nothing but asset price inflation, not the production of more goods and services over their working lifetime than they consume

A few well-timed and well-placed actions could have made a big difference. Hitting hard against the whole collapse in home loan underwriting standards would have helped. Yanking the FNM, FRE, FHA etc govt supports from housing finance would have made a real difference. It would help a lot now, too, but we seem to have the stomach only to point at symptoms, or more minor causes. We really don’t want to truly deflate the housing bubble. That would PO the baby boomers, big-time. There’s only one thing that will get people more excited than the chance of getting a free lunch, and that’s the chance they’ll lose a free lunch.

[patientrenter]

“Well I’m sorry but it was my impression that the unfettered and unregulated market was the one that got us into this mess.”

I think political partisans on one side like to point to govt intervention as the source of all the problems, and partisans from the other side like to point to the lack of govt intervention as the source of all problems.

I think we had a lot of things going on:

1. Excess savings imported into the US from China and some oil exporting countries via US trade deficits with those countries

2. Cowboy activity in the private investment world recycling the extra dollars into high risk debt disguised as AAA debt

3. Baby boomers saving virtually nothing for the last 30 years, but expecting long and luxuriant (and medically expensive) retirements on the back of nothing but asset price inflation, not the production of more goods and services over their working lifetime than they consume

A few well-timed and well-placed actions could have made a big difference. Hitting hard against the whole collapse in home loan underwriting standards would have helped. Yanking the FNM, FRE, FHA etc govt supports from housing finance would have made a real difference. It would help a lot now, too, but we seem to have the stomach only to point at symptoms, or more minor causes. We really don’t want to truly deflate the housing bubble. That would PO the baby boomers, big-time. There’s only one thing that will get people more excited than the chance of getting a free lunch, and that’s the chance they’ll lose a free lunch.

[patientrenter]

“Well I’m sorry but it was my impression that the unfettered and unregulated market was the one that got us into this mess.”

I think political partisans on one side like to point to govt intervention as the source of all the problems, and partisans from the other side like to point to the lack of govt intervention as the source of all problems.

I think we had a lot of things going on:

1. Excess savings imported into the US from China and some oil exporting countries via US trade deficits with those countries

2. Cowboy activity in the private investment world recycling the extra dollars into high risk debt disguised as AAA debt

3. Baby boomers saving virtually nothing for the last 30 years, but expecting long and luxuriant (and medically expensive) retirements on the back of nothing but asset price inflation, not the production of more goods and services over their working lifetime than they consume

A few well-timed and well-placed actions could have made a big difference. Hitting hard against the whole collapse in home loan underwriting standards would have helped. Yanking the FNM, FRE, FHA etc govt supports from housing finance would have made a real difference. It would help a lot now, too, but we seem to have the stomach only to point at symptoms, or more minor causes. We really don’t want to truly deflate the housing bubble. That would PO the baby boomers, big-time. There’s only one thing that will get people more excited than the chance of getting a free lunch, and that’s the chance they’ll lose a free lunch.

[patientrenter]

EconProf, I have never owned, so I confess to not being very interested in your tax situation, but I am puzzled and quite curious about your frame of mind when you bought. I am not trying to be nasty or anything. I am just curious what the perspective of an exceptionally educated and aware peak buyer was. I suppose this is just my version of asking you “what were you thinking?”

[patientrenter]

EconProf, I have never owned, so I confess to not being very interested in your tax situation, but I am puzzled and quite curious about your frame of mind when you bought. I am not trying to be nasty or anything. I am just curious what the perspective of an exceptionally educated and aware peak buyer was. I suppose this is just my version of asking you “what were you thinking?”

[patientrenter]

EconProf, I have never owned, so I confess to not being very interested in your tax situation, but I am puzzled and quite curious about your frame of mind when you bought. I am not trying to be nasty or anything. I am just curious what the perspective of an exceptionally educated and aware peak buyer was. I suppose this is just my version of asking you “what were you thinking?”

[patientrenter]

EconProf, I have never owned, so I confess to not being very interested in your tax situation, but I am puzzled and quite curious about your frame of mind when you bought. I am not trying to be nasty or anything. I am just curious what the perspective of an exceptionally educated and aware peak buyer was. I suppose this is just my version of asking you “what were you thinking?”

[patientrenter]

EconProf, I have never owned, so I confess to not being very interested in your tax situation, but I am puzzled and quite curious about your frame of mind when you bought. I am not trying to be nasty or anything. I am just curious what the perspective of an exceptionally educated and aware peak buyer was. I suppose this is just my version of asking you “what were you thinking?”

[patientrenter]

Patience, SDR. We can only be patient, and ready to pounce. It is very frustrating at times, but ya gotta distract yourself when that happens.

[Author]

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