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EScroogeJr (< 20)

Now, who is really stupid?

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December 04, 2007 – Comments (10)

The renters who did not take ARM loans and continued to rent have been telling us how smart they are and how stupid are those (presumably) struggling homeowners who got into these loans. OK, if you're so smart, why are you paying your tax dollars to those who are stupid? The Paulson bailout has its cost, which somebody will be paying, and obviously, it's won't be the homeowners who are getting bailed out. Keep renting, wait untill you're priced out of the housing market and then get fleeced by the Federal Government to help homeowners price you out still further - now, that's really smart!

10 Comments – Post Your Own

#1) On December 04, 2007 at 11:22 PM, devoish (98.26) wrote:

It is starting to look like you are going to get to say a nice "I told you so" about how Paulsen is going to handle this. At least the renters will get some satisfaction watching the homeowners property tax jump them right back up into default territory when their school and fire and police districts lose 10% of the money they have invested in AAA securitys that turn out to be holding SIV's. And of course now you can add grandma's house to the list of propertys for sale. Fixed income and all that. I'll enjoy having her in my house (fortunately that is true).

Oh your question... Anyone who thinks a small gov't is a strong gov't.  

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#2) On December 04, 2007 at 11:41 PM, EScroogeJr (< 20) wrote:

So you theory is that local governments will increase property taxes? OK, suppose for the sake of a gedanke experiment that this is true. But you forget that this will immediately prompt Paulson to declare another bailout :)

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#3) On December 05, 2007 at 12:13 AM, devoish (98.26) wrote:

In my state (NY) the school districts are funded mostly by property taxes and some money back from the state. They'll raise taxes if they can, or cut services.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aHR5KklFq4X0

O.K. I'll play. My guess is Paulson will not bail out the bottom of the boat. He wants the losses to be as far away from the people he knows as possible.

Off I go now to find out what a gedanke experiment is.

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#4) On December 05, 2007 at 12:30 AM, devoish (98.26) wrote:

Gedanke experiment. That was disappointing. I was really expecting some sick behavioral science experiments.

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#5) On December 05, 2007 at 10:43 AM, GS751 (27.40) wrote:

the fed is on slippery sloaps right now.

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#6) On December 05, 2007 at 12:17 PM, leohaas (31.56) wrote:

No, there will be no bailout for increasing property taxes. That is because high property tax states are Blue states...

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#7) On December 05, 2007 at 1:31 PM, EScroogeJr (< 20) wrote:

Color is not important. Legislators will never vote to hike their own taxes, be they red, blue, green, brown, or pink.

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#8) On December 05, 2007 at 3:43 PM, devoish (98.26) wrote:

Somebody is voting to raise my taxes.

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#9) On December 05, 2007 at 8:13 PM, dude59 (27.25) wrote:

The bailout of subprime will not happen, or if it does, the housing market will get much worse for the short term as ALL ARM mortgages will be subprime, contract law will not mean anything in the future, the lawyers will have a field day and no more ARMs will ever be written. This would mean that all future mortgages would be fixed-rate, which will immediately drive down house prices as in many places ARMs are the only way to get in.

How many people are going to keep paying more than rent in depreciating assets? 

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#10) On December 05, 2007 at 9:33 PM, EScroogeJr (< 20) wrote:

Sorry to disappoint you, but the bailout is already happening :)

http://biz.yahoo.com/ap/071205/mortgage_crisis.html 

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