Quote:
Originally Posted by JP-pornshooter
My house went up $200K in 2 years..granted it has gone down a little lately, but will hardly crash..and will in any case go up in a couple years again..there is only so much california ground available..
Early next year the feds will decrease the interest rates, and guess what, the real estate market will start again..
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Dunno.. but inclined to agree with you on land - particularly homes when there is a economic downturn. It's not so much the value, but the fact that you got a home and a roof over your head.
Tho strong is certainly not a word I'd use to describe the US economy - it was (in 2004) running at a deficit of over $50 trillion - and hell knows what it may be now. This is reflected in the current dollar value and there is obviously going to be a debt increase as long as this low value remains.
In the spring of.. think 2003, the US Treasury issued the most comprehensive report ever on the economy - it took them 15 years to produce. An interesting, but simplified stat resulting from that report was.. if you add up all real estate value and the contents within homes etc - that represented 94% of the national debt. The situation is most likely worse now and over 100%.
The "solution" of the Treasury was to increase taxation asap up to around 60% and maintain this as long as needed, tho that sounds more than drastic - but it was their considered opinion.
Truth is, US folks work longer than in many other nations already - it makes ya wonder how much more that cow can be milked to produce an income source for govt. Despite that, spending is 160% of wages - basically helping increase the national debt in consuming of imported products - and adding to personal debt.
Who knows... but got a gutty feeling there will be some changes over the next 10-20 years. What they are, hell knows, but unsustainability can only last so long.