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First house for a young man

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cdev:
This is why we had the 2008 crash. A stupid decision made by the Clinton Administration (but it must be emphasized that this deregulatory agenda is the common point for both US "parties" and its totally ill-considered.)

In 1998 it was Clinton who was pushing his deregulatory services agenda, to "reform" the Glass-Steagall Act - which kept investment firms and banks separate. 

They claimed that the Glass-Steagall Act which had prevented speculators from being able to tap the US Treasury to cover their gambling debts, violated their new general agreement on trade in services.. 

This WTO services agreement.. which almost nobody knows about, has been responsible for so many problems.

But they obviously did so well from the 2008 crash.. at the taxpayers expense.

that now the GOP is making the same mistake again. (see attached)

This is why I suspect we'll see another bubble, soon. The wolves are running the henhouse.

Watch out you don't get trapped like so many others.

Of course, people still need places to live, and the place you yourself live is far more likely to be a good investment.

but its not unlikely we'll see wild fluctuations in values again, I think. Soon.

One could almost guarantee it with Trump and in fact his candidacy seems to have been a not so subtle message to some that the green light to speculators to steal the country again.

So that the common people's pensions and medicare can be stolen to pay back the banks that caused the problem.

Trump is well known in the US for having finagled his wealth by highly leveraged investments.. i.e. speculation.

The world needs to tax financial transactions so that there is a cost to speculation high enough to discourage it.

Also entities that engage in speculation should be required to carry insurance to indemnify others and society. That will remove the incentive for schemers to use their power to take over the country and use it as part of their huge Ponzi scheme.

The tax on financial speculation should go to pay for assets, like education for our best students, and PUBLIC infrastructure that no GATS or TISA or other evil trade agreement can force the privatization of - In other words, unstealable assets.

Who cares about sucking up to the capitalists.

 If that discourages international investors from moving their money around like quicksilver, so be it!

That will be more than made up for by sensible, intelligent people who will then find a refuge from the madness in America.

rstofer:
It actually started with Reagan having Fanny Mae and Freddie Mac write substandard loans in impoverished neighborhoods.  The idea was that homeowners would be more invested in their neighborhoods and tensions would decline.

Everything else just piled on.  For many years, only Savings and Loans could write mortgages.  Once banks got permission, everything fell apart.

I did hear that Fanny Mae and Freddie Mac were back in the business of writing 'liar loans' but I don't think the banks are back in that game.  Nobody on the planet would buy that kind of bond again.

Once they started write "no doc" or "liar" loans, people could get over extended in a heartbeat!

cdev:
NINA loans. "No income, no assets"

NINA loans should not be written.

Growth is not a given, we're seeing deindustrialization now.

We wont see growth if their war on the middle class continues.

Sure, credit is tight when money is tight, because people are protected from crooks.. thats the way it should be.

What happens in austerity?

Since the wealthy have inevitably flown the coop with all the money its the people, especially the weakest who never had much of anything who lose their hopes for a better day in the future, who lose everything.

If anybody here has gone through official "austerity" in your country, (not Americans and Brits who are having it forced on them via stealth) I'd love to hear what it was like.

Blueskull, you'll do fine, just don't rush into things. No deal is too good to spend some time evaluating.

Towger:
Blueskull, you must be sorry you started this thread.  It appears half the posters did not read your original posts re not being able to borrow.  My vote is for the three bedroom still stands.  Just do your research, better may turn up soon.  When I was young I made the mistake of not buying early, despite having more than enough money in the bank.  Your buying power gets erroded with time.  Property is recovering again, better to get in the game early, than the top of the boom bust cycle.

cdev:
Towger, what about deflation?

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