How stupid can someone be?

On Wed, 16 May 2012 15:17:28 +1000, Trevor wrote:

"Stefan Patric" wrote in message
...
And Clinton, who created the financial mess the world now finds
itself in.

Boy! Do you have a distorted view of history?

Not distorted at all.

The Clinton administration while not actually "creating" the world
recession is faulted with setting up the circumstances for it through
one of his "economic" programs. That program was to enable people who
couldn't really afford to buy a home, that is "lower income" workers,
to buy one through government credits, incentives and mortgage security
guarantees to lenders. Anyone with any common sense saw this as a bad
idea, but idealistic career politicians are not known for having common
sense. This started the "housing boom" in the US, and the rapid
appreciation of property values to the point where even those who had
no mortgages couldn't afford the property taxes on their free and clear
property. Property taxes are calculated on the market value of a home
and not its purchase price.

And has *nothing* to do with the amount charged since the "cents in the
dollar figure" is simply calculated on how much the government thinks
they need and can get away with. As house prices go up, the "cents in
the dollar" rate charged for taxes can, and should come down. Whether it
does or not is up to the greed of government OF THE DAY.

You need to brush up on how Property Taxes are calculated. Property
taxes are not the same as Personal Property taxes. Basically, in the US,
the formula is:

((Home's value * Assessment Rate) - Exemption Credit) * Property Tax Rate
= Property Tax

When the Market Value of a home increases, the tax increases. It can't
do otherwise unless the Assessment and Tax rates are LOWERED or the
Exemption INCREASED. All three of which require a time consuming
legislative process to change. And in some states in the US, a vote by
the people in a general election, too. Plus, the amount of change and
the maximum that can be charged are usually limited by law.




(Another bad government concept.) As the
housing market "busted" major investors who had gotten on the gravy
wagon for the big profits were jumping off, en masse, and in the
process brought down the US economy. And as the world economy is
joined at the hip with the US' . . .

So, yes, it was Clinton who "enabled" the fall. .


What a load of crap, it was the total lack of regulation of the banks
"sub prime" scams that mainly caused the global meltdown. In Australia
we had the same housing boom, which still exists, without our economy
collapsing, not yet anyway. And if it does it will only be because of
the global problems, mainly caused by US banking greed and it's total
lack of regulation, finally impacting our economy.

I'm not familiar with Australia's economy or its banking laws, so I can't
speak on that, but in the US, in hindsight analysis, it was determined
that a piece of legislation championed by then President Clinton was the
single pebble dropped into the sea that became the tidal wave which
devastated the US and, ultimately, the world's economies. This was
reported in newspapers, magazines, TV, etc., over and over (with extended
commentary) for weeks a few years ago at the height of the recession here.


As an aside: At what rate are housing prices currently appreciating in
Australia? In the US, during the boom, in the areas greatest affected,
home prices were increasing on average 25% to 33% per year. Middle class
homes were selling the same day they were listed (or the next), many for
cash, that is, no loan. I had a friend who bought a place (with a loan)
just as the boom was beginning and sold it about 4 years later, about a
year prior to the bust, for almost triple what he paid for it.


Stef