Big ideas for cutting deficit, but they'd hurt

[goof2]

Originally Posted by Homeslice

And they will continue to do so. There is no way in hell they would raise rates in the near future, considering the unemployment and housing situations we're in.

I wish they would. All screwing with interest rates now will do is exacerbate the impact when they do go up. Any pain that raising rates now would create is minor compared to trying to chase out of control inflation. That specter is especially possible considering the Fed is "priming the pump" by printing damn near a trillion dollars to purchase Federal treasuries. Anyone who remembers the Fed funds rate over 20% knows it can get a lot worse than it is now.

[101lifts2]

Eliminating the mortgage interest credit would have to force banks to lender at near 0 interest rates...or buying is just not possible.

[goof2]

Originally Posted by 101lifts2

Eliminating the mortgage interest credit would have to force banks to lender at near 0 interest rates...or buying is just not possible.

Under current conditions it would slow sales down more than they already have, but really in the 70s and early 80s people were getting mortgages at 15% and higher. For shorter periods mortgage rates were over 20%. Homes were still selling under those conditions, even though those interest rates cost home buyers a hell of a lot more than removing the tax credit would.

[101lifts2]

Originally Posted by goof2

Under current conditions it would slow sales down more than they already have, but really in the 70s and early 80s people were getting mortgages at 15% and higher. For shorter periods mortgage rates were over 20%. Homes were still selling under those conditions, even though those interest rates cost home buyers a hell of a lot more than removing the tax credit would.

It is really not the rate...rather the payment per month. If the rates are high, then the price of houses have to be low...and vice versa.

[tallywacker]

Eliminating wars that have nothing left to gain. How about that? Plus kill the department of homeland security. It's just another giant blood sucking government entity. The CIA and NSA as there for a reason.

[Homeslice]

Actually the DHS & TSA is really what the FBI, Border Patrol, and commercial airlines were already doing. The Bush Admin just wanted to act like they were doing something better by creating a new agency.

[pauldun170]

Originally Posted by goof2

Under current conditions it would slow sales down more than they already have, but really in the 70s and early 80s people were getting mortgages at 15% and higher. For shorter periods mortgage rates were over 20%. Homes were still selling under those conditions, even though those interest rates cost home buyers a hell of a lot more than removing the tax credit would.

Cut that queer talk.
Next thing you know you'll be making up some bullshit about how people got rich when the top rate was 90%.