Discussion in 'Economics' started by crgarcia, Aug 18, 2009.
You do raise a good point.
DO YOU HAVE A REFERENCE FOR THAT.
I WAS THERE AND MY FATHER WAS BANKRUPT AND WE SLEPT ON THE FLOOR IN A TENEMENT WITH HARDLY ENOUGH TO EAT.
Obviously he never heard of Bank of United States and their mortgage business. The Lehman of their day.
Rural people were ok in the Great D.. it was urban people that were royally screwed same as the industrial revolution period... Urbanites nowadays can grow an amazing amount of food in a small space if they read "Square Foot Gardening"..
Unsecured debtors aren't that bad off. You can just stop paying when you are out of work and change address. Some really cagey folk are recording all their phone calls and recording all the numbers the calls come from and suing the collectors and getting a lot more than what was owed... just get a 56k modem card and set up a computer to be an answering machine... it takes all of an hour...
Secured debtors that aren't terribly underwater on their RE are also not bad off, when the inflation hits, their real estate values should outdistance the debt.. if inflation is as bad as I think it will be, it always is when Marxists are in charge... and all things considered, it could drive itself all they way to Zimbabwean levels, even people that are underwater on their RE should make out like bandits in the inflation... and of course the commies that are doing a hostile takeover of our health care system will all make out like bandits... so don't be fretting about them, they will be fine, they won't have to use the new health care system in fact... they use the Federally funded first tier system that is more suited to their station in life...
Why do you fail to consider the real estate taxes? OK, so your house is worth a million dollar due to hyperinflation and now you need to pay 50K in taxes, and one may not have the money. Inflation and deflation are both bad. Mild inflation and strong growth are good, but we rarely see that.
I'm in Ca, property taxes don't go up uniess a title transfers.. sorry... you guys in other areas should try it.. they make up for it with sales taxes and I like that form of taxation, everybody pays it, illegals, tax cheats, criminals.....
Ca has property tax, sales tax and income tax.. every form of tax there is and the pos leftists are out of money chronically...
Ok, then, "Trade well or die", that is our choices.. and oh yeah, a jobless recovery is right around the corner but BO Pelosi and Company has got our back on that one.. somehow.. but without tax revenues how do they intend to pay for it all?
"Why do you fail to consider the real estate taxes? OK, so your house is worth a million dollar due to hyperinflation and now you need to pay 50K in taxes, and one may not have the money. Inflation and deflation are both bad. Mild inflation and strong growth are good, but we rarely see that."
I see this over an over again. Just sell it. I wish my house was worth a billion, I only paid 160k. Make profit. get a new cheaper house you can afford with all that profit. Or, use it for rent on an apartment. Or, better yet, move away from the coast and cities to avoid huge tax payments and find a permanant home.
Plus with inflated prices, you will eventually have inflated wages, etc. which will cancel out the issue.
that is the cause of the great depression leverage and debt.
people were in debt and after the great depression they weren't in debt anymore cause they lost everything and filed for bankruptcy so they don't owe money anymore.
leverage on stocks were 10:1 and easy credit and debt was the norm...after the great depression debt was considered bad
hoodoo, I think the OP meant those in the GD weren't indebted to the degree we, as a nation, are today.
Credit Cards didn't exist in 1930.
We were a farming society back then, for the most part.
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