Planet Money's Fake Presidential Candidate:

[89Hen]

My point exactly. When you put homeowners in a position where they are updide down in their homes, foreclosures go up. This isn't rocket science.

Screw them...if they bought a home to live in, instead of for an investment, then they don't need to worry about being "upside down".

I'm talking about people who live in their houses. I'd have to guess at the figure, but I'd say 80-90% of homes in the US are owned as primary residences. I've done plenty of HARP refis for young couples who bought in 2004-2006 who are upside down on their primary residence, and I live in an area where we didn't get nearly as hard. Where Z lives and works it's probably 5x worse.

[89Hen]

I wonder who in this discussion owns homes and who doesn't.

[89Hen]

Of course all houses will lose value...but again, where will the people go? I'd think most people would refi rather than walk...3% mortage rates save a hell of a lot of money over the course of 15-30 years and if they can't purchase another house, then they are out on the streets.

Cluck U, the compassionate candidate.

[CAA Flagship]

I wonder who in this discussion owns homes and who doesn't.

Own?
Well I have a mortgage, but I won't in 58 months from now.

[HI54UNI]

I wonder who in this discussion owns homes and who doesn't.

I own my home and I didn't buy it for the tax deduction.

I think one issue behind this is regional differences in housing prices. I live in a 2100 sq foot home, two car garage, plus an extra lot with another 2.5 car garage. House was completely remodeled in 2008 so basically it is new inside and out. $200,000 would buy it all. So my mortgage is small in comparison and my interest deduction is minor in the big scheme of things. The same house elsewhere would be substantially more so the interest deduction becomes a bigger issue.

I still think we need to start phasing it out. You used to be able to deduct interest on other things like credit cards and they phased that out and the economy survived. Flat tax is the way to go.

[CAA Flagship]

...and I live in an area where we didn't get nearly as hard.

How do you reproduce?

[89Hen]

...and I live in an area where we didn't get nearly as hard.

How do you reproduce?

hit, hit nearly as hard.

[89Hen]

I own my home and I didn't buy it for the tax deduction.

No smart person does. But that's not what anyone is saying.

[HI54UNI]

I own my home and I didn't buy it for the tax deduction.

No smart person does. But that's not what anyone is saying.

No, you're saying a lot of people buy more house than they can afford.

[89Hen]

You used to be able to deduct interest on other things like credit cards and they phased that out and the economy survived.

It survived partly because people moved their credit card debt to home equity debt which was (and still is) tax deductible.

BTW, if you use your card for work purchases you can still write off the interest against your business income.

[89Hen]

No smart person does. But that's not what anyone is saying.

No, you're saying a lot of people buy more house than they can afford.

No, I'm saying people already own homes they CAN afford based on them being able to write off their interest deductions and if that deduction was taken away, they might not be able to afford their homes AND their homes would decrease in value.

[HI54UNI]

No, you're saying a lot of people buy more house than they can afford.

No, I'm saying people already own homes they CAN afford based on them being able to write off their interest deductions and if that deduction was taken away, they might not be able to afford their homes AND their homes would decrease in value.

I understand what you are saying. What I'm saying is that people bought a more expensive house while trusting the govt. That's their mistake IMO.

[CAA Flagship]

No, I'm saying people already own homes they CAN afford based on them being able to write off their interest deductions and if that deduction was taken away, they might not be able to afford their homes AND their homes would decrease in value.

I understand what you are saying. What I'm saying is that people bought a more expensive house while trusting the govt. That's their mistake IMO.

Not much difference in trusting your job income though.
How long have mortgage interest tax deductions been around? Probably longer than most people have been employed. I don't think "trusting" the government was out of line here.

[89Hen]

No, I'm saying people already own homes they CAN afford based on them being able to write off their interest deductions and if that deduction was taken away, they might not be able to afford their homes AND their homes would decrease in value.

I understand what you are saying. What I'm saying is that people bought a more expensive house while trusting the govt. That's their mistake IMO.

Trust? The tax break that has been around since 1913. Why would anyone think it was going away?

[HI54UNI]

I understand what you are saying. What I'm saying is that people bought a more expensive house while trusting the govt. That's their mistake IMO.

Trust? The tax break that has been around since 1913. Why would anyone think it was going away?

Because the govt giveth and the govt taketh. Anyone that trusts the govt not to change the rules is a fool. But those same fools bought more house than they can afford too. What happens when the govt increases tax rates to pay for this tax deduction? What good does the deduction do them at that point? The govt has to start making cuts and everything needs to be on the table because otherwise there won't be enough cuts to make. There's no way around it.

[89Hen]

Trust? The tax break that has been around since 1913. Why would anyone think it was going away?

Because the govt giveth and the govt taketh. Anyone that trusts the govt not to change the rules is a fool. But those same fools bought more house than they can afford too.

My arguement from the start was IF the gov were to take this one away, it would tank the housing market. This notion of buying too much house is a separate and really non-related issue. We will have to agree to disagree that a 99 year old rule is the cause of people buying too much house.

[AZGrizFan]

Because the govt giveth and the govt taketh. Anyone that trusts the govt not to change the rules is a fool. But those same fools bought more house than they can afford too.

My arguement from the start was IF the gov were to take this one away, it would tank the housing market. This notion of buying too much house is a separate and really non-related issue. We will have to agree to disagree that a 99 year old rule is the cause of people buying too much house.

Give it up, Hen.

[Grizalltheway]

My arguement from the start was IF the gov were to take this one away, it would tank the housing market. This notion of buying too much house is a separate and really non-related issue. We will have to agree to disagree that a 99 year old rule is the cause of people buying too much house.

Give it up, Hen.

So much for conks never giving up.

[AZGrizFan]

Give it up, Hen.

So much for conks never giving up.

Well, it's not our job to educate the retarded. You're on your own.

[Grizalltheway]

So much for conks never giving up.

Well, it's not our job to educate the retarded.

Good thing, too. Your dumb ass would have been canned long ago.

[AZGrizFan]

Well, it's not our job to educate the retarded.

Good thing, too. Your dumb ass would have been canned long ago.

And you've been determined to be non-salvageable...go back to sucking off the gov't teet.

[Grizalltheway]

Good thing, too. Your dumb ass would have been canned long ago.

And you've been determined to be non-salvageable...go back to sucking off the gov't teet.

Don't take a dime from the government, or anyone else. GFY.

[AZGrizFan]

And you've been determined to be non-salvageable...go back to sucking off the gov't teet.

Don't take a dime from the government, or anyone else. GFY.

Well then GFY. That means, Good For You, right?

[Grizalltheway]

Don't take a dime from the government, or anyone else. GFY.

Well then GFY. That means, Good For You, right?

IDK, ask Grizo.