Date registered: Aug 2002
Vehicle: 2021 SL770
Location: Fountain Hills, AZ
Mentioned: 1 Post(s)
Quoted: 544 Post(s)
The housing collapse occurred because every baby boomer who was ever going to buy a house had already done so. New housing starts continued en masse, while the consumer based waned, thus reducing the value of all existing homes -- simple supply and demand. Why does the US Census Bureau exist, if not to foresee such obvious eventualities?
The tax I suggested already exists in certain places in our country including parts of FL, and it is imposed upon foreigners who purchase U.S. homes to reduce or eliminate foreign spec builders. In any case, I was describing a temporary tax on new home starts only, for the very purpose of regressing that industry. Not my first choice, but if such protectionism would have prevented the meltdown, then so be it. Raising, rather than lowering interest rates would have also helped.
"If spending money you don't have is the height of stupidity, borrowing money to give it away is the height of insanity." -- anon