This is just another example of you not knowing what you are talking about
Last edited by Conservative; 10-13-11 at 07:31 PM.
I bought my first house while Carter was President. And my second house, with interest rates on the second house at about 12%. What made such possible to bear then was that inflation was still high enough that the houses were appreciating at a rate consistent with my interest rates. So at least I could anticipate selling down the road, having renegotiated interest rates as they moved with inflation, and get my money back as I went through the next sale-purchase cycle. Yes, it was a smaller house for the money. But without the prospect of losing more when I sold.
Being underwater poses a whole different scenario. If I have no plan to sell-move anytime soon, then it is not necessarily a dire situation. But if I must move, I am faced with carrying a huge loss forward.
Both scenarios are bad, high interest rates and being underwater. But in different ways, which will vary based on variable factors.
Last edited by Eighty Deuce; 10-13-11 at 07:40 PM.
The GOP National Committee should change their emblem from an elephant to a condom. A condom stands up to inflation, halts production, destroys the next generation, protects pricks, and gives one a sense of security and safety while screwing others.
Now compare that with the millions of people who did just the opposite in the mid-2000's ... they took out ARMs and deferred interest loans for extremely low interest rates and then couldn't afford to keep up with their mortgage when the fixed rate expired and the interest rates rose. They lost all their money and had nothing to help fuel a recovery. That's a big part of the problem for why the recovery has been so sluggish.
The big difference that you're incapable of understanding is back then, there was room to produce a recovery. That's a luxury which doesn't exist now.
Back then, we were able to reign in inflation, thereby promoting growth; now, inflation is already low.
Back then, we were able to lower interest rates to spark investments, thereby promoting growth; now, the interest rates are already low.
Back then, income taxes were as high as 70%, plenty of room to reduce them to put more money into the economy; now, income taxes are already near historic lows.
Back then, national debt was not an issue, there was plenty of room to borrow to invest more money into the economy; now, the national debt is bursting at the seams and there's little more we can tap into.
All the things that could be done to generate a recovery were at Reagan's disposal back then and none of them are available now. And Obama isn't responsible for any of them except the debt, which Republican presidents contributed some 80% of prior to Obama becoming president.
Last edited by Sheik Yerbuti; 10-13-11 at 07:46 PM.