tag:blogger.com,1999:blog-2335748440449035592.post1965152122681660802..comments2007-12-14T10:02:18.839-05:00TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2335748440449035592.post-69940386680364372362007-12-07T11:31:00.000-05:002007-12-07T11:31:00.000-05:00Hi Jim. Not sure on the taxation thing - the govt already taxes enough things as it is. I do agree on the bankruptcy reform - that was powered through by credit card companies and other such powers... it will now start showing as an issue. I simply think it was a get rich mentality that is part of human nature - no different from tech stocks in late 90s but more people own homes than tech stocks and the value of homes much higher than most people's portfolios of course. Many places to lay blame - the people themselves (not financial sophisticated), the lenders (the system benefits volume of mortgages created, nothing else), the regulators (where were they? why do some states not even require licensing for mortgage brokers?), the banks, everywhere. Financial 'innovation' advanced far quicker than any form of regulation. And thats if we were a society that even adheres to regulation - its ususally been nailed into our heads that regulation is evil. Until stuff like this happens. As with everything we will now OVER react the other way, and it will exxagerate the problem - getting a mortgage will be much harder than it should be. I love the solutions being bandied about now, raise Fannie Mae/Freddie allowance from $417K to $600K+ (anything to prop up home prices to a level they should not be at), or allow Fannie Mae/Freddie loans with nothing down (this caused the whole issue in the first place - there is no incentive not to walk away when you put nothing into a house)<BR/>All these solutions are geared to propping up home prices - nothing else. Sad.TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-51513107181455071082007-12-07T09:10:00.000-05:002007-12-07T09:10:00.000-05:00Hi Mark, one of the causes i think contributed to the housing problem was the change of the tax code to exempt house sale gains from taxation. Once they made it zero, too many people piled in. I think it should be taxed the same as capital gains. Next, allow someone to deduct the loss as well, level the tax playing field. Another i think often over looked issue was the bankruptcy reform. Much harder to go the chapter 7 route. Will see how that one plays out.jimideanhttp://www.blogger.com/profile/07565061657887275998noreply@blogger.com