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Housing policy has been a generational transfer of wealth.


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2011 Mar 22, 10:12pm   10,569 views  61 comments

by American in Japan   ➕follow (1)   💰tip   ignore  

Maybe Surfer-x was right. He was always critical of Baby boomers. But could there be a point to this. Take these: (1) The housing interest deduction (2) 1031 exchange -the carrying over, tax free, of massive amounts of capital gains from selling a house (owner-occupied). (3) Proposition 13 (in the case of California), (4) the shift of one income to two come homes (and perhaps even more importantly– the qualifying of the second salary for household income with banks and other lending institutions.) (5) The tax credit under Obama (although this one didn't cause a lasting paradigm shift) ... and (6) Whatever else I missed. Each of these really just raised the cost of housing for the next round of purchasers. The beneficiaries are really those who already owned houses and it never really became relatively more affordable to those who are now first-time buyers.

#housing

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39   terriDeaner   2011 Apr 2, 5:41am  

kimboslice says

If you guys want to blame those older than you are for the bad policies then you are missing the point I think.

For the record, not ALL boomers are greedy, evil fucks. That much is true.

And sure, your future generation fuckfest was initiated and enabled by relatively few influential and empowered members of your generation. But most of the rest of you sat idly by as their destructive governmental and corportate policies made you more financially secure at the expense of your children. So directly or indirectly, MANY of you helped steer this country directly into the shitter for your own greedy, short-sighted purposes.

kimboslice says

(remember the 70’s?)

I do. Do you really think things are BETTER now?

40   kimboslice   2011 Apr 2, 5:58am  

It's absurd to blame any generation for politics. The 70's were bad, from my personal perspective was it was worse because of high inflation and high interest rates and the oil embargo. At any time, there are two sides to the political view, and sometimes one side won. There are always about half as many on either side. "Tax the rich!" "Cut off welfare!" It is always this way, and it's got little to do with age. Actually, as far as age groups go, young voters tend to be more liberal or left in their voting pattern.

41   FortWayne   2011 Apr 2, 1:08pm  

MarkInSF says

College professors? More like the vast administrative staff that have grown up around them. Not to mention the for profit diploma mills that have sprung up, that are little more than a financial corporation with a college subsidiary.
A few weeks ago I picked up a copy of “The Student Loan Scam”, and read the authors introduction. What I read stunned me. It is predatory lending at it’s worst, and it’s got government backing.

This entire system is outrageously corrupt. And there is so much money in it that it won't be fixed for a long time.

Teachers union constantly cries for more money, under excuse that it is for the children, when in reality it is for the unions bloated pensions and perks. Entire system is full of crap.

I think it was last year, when they passed another tax. If you own a home you get to pay $100 in taxes toward the schools. Schools sure didn't get better, pensions though got more bloated. Our neighbor who is a teacher got another raise, now she makes $50/hour while still barely able to speak English.

I'm very very bitter about our education system, which provides below subpar education, and has insane costs.

42   terriDeaner   2011 Apr 2, 2:13pm  

kimboslice says

At any time, there are two sides to the political view, and sometimes one side won.

Wow, it's weird that you didn't have to struggle with the notion of a 'false dilemma' back in the 70's. But then, you also didn't have to wear a condom back in those days either. Somehow it all makes sense, I guess.

kimboslice says

There are always about half as many on either side. “

And it's good that you kept such an accurate count over all these years.

kimboslice says

It’s absurd to blame any generation for politics.[...]Actually, as far as age groups go, young voters tend to be more liberal or left in their voting pattern.

Funny that. Perhaps this means that boomers voted for 'liberal' policies when they were young, then voted for progressively more 'conservative' policies as they aged. Doesn't sound self-serving at all.

43   wosyello   2011 Apr 2, 11:08pm  

Just a thought, Do you think the boomers came up with plan to over indulge and to hell with everything else or do you put a bit of the blame on the boomers parents generation for spuring them on by telling them they can have everything they want and be anything they want?

44   outoftheloop   2011 Apr 3, 2:23am  

Just a thought, Do you think the boomers came up with plan to over indulge and to hell with everything else or do you put a bit of the blame on the boomers parents generation for spuring them on by telling them they can have everything they want and be anything they want?

45   kimboslice   2011 Apr 3, 4:07am  

Most boomers experienced a growing economy and increasing prosperity in the 60's. Of course, some who were drafted and shot in Viet Nam did not come back to vote and "mess things up" here. Then came the shock of the 70's and most boomers were scared shitless like everyone else who had a 1. car 2. bills 3. brains.
Were people brainwashed into buying things they do not need and use credit to get them? Of course. Does everyone want guys to buy things and spend their dough? Sure. Is this a "boomer" phenomenon? No way.
Many boomers I know thought the safe way to go was work in government agencies of some kind, or large companies or as professionals. This is why there are so many lawyers today I believe. They already saw the crummy 70's as a wakeup call to get serious and forget "follow your dreams".
I don't equate the fucked up situation with an age group, but rather a mindset of fools and rewarding financial "innovation" rather than rewarding true innovation and production.
Either way, the net worth of everyone is falling since most of American's net worth is their house, the rich of course have a higher proportion of their net worth in financial assets that are liquid. Small satisfaction but I know a guy who are $150,000 underwater and a former hippie "boomer" who drank the Koolaid along the way, previously he was a happy go lucky guy teaching in a community college, think "Glee" but with legal age chicks. Now he's going to work himself to death trying to hold on, and he is running out of energy.
If you are not old and tired you can work your way out of problems.

46   terriDeaner   2011 Apr 3, 5:42am  

kimboslice says

Were people brainwashed into buying things they do not need and use credit to get them? Of course.

Was this how your parents managed to do things? Through the depression? Through WWII? Take some personal responsibility for a change.

kimboslice says

Does everyone want guys to buy things and spend their dough? Sure.

Yes, every single fucking person in the world feels this way. It's true.

kimboslice says

Is this a “boomer” phenomenon? No way.

Not any more! Nice work disfiguring one of the world's most productive societies into a low-paying service and cheap-goods based consumer society in one generation. Kudos!

47   terriDeaner   2011 Apr 3, 5:45am  

kimboslice says

If you are not old and tired you can work your way out of problems.

And this is why foresight and responsible stewardship are so important.

48   kimboslice   2011 Apr 3, 6:05am  

Why should I take personal responsibility for things that have nothing to do with me? Businesses and our own government encouraged people to borrow/spend and buy things they could not afford, especially houses. I don't support the idea myself.
Until the 50's advertising on television did not exist so the constant marketing pressure increased along with increased consumerism, debt, etc all combined to make a powerful force so people go to shopping malls (another recent invention).
Marketing, consumerism, easy credit, debt spending, debt borrowing by people and government reached its peak and another asset bubble popped. Funny but I do not see only boomers spending money they don't have on iPhones, iPads and Abercrombie sweatshirts. I was in a very fancy shopping section of Austin Texas and the people almost absent from it were boomers come to think of it.

49   kimboslice   2011 Apr 3, 6:11am  

You might be surprised how many boomers are also disgusted with how our country has outsourced our production. Actually, it's many in the media like Lou Dobbs, Peter Schiff, and guys on the radio.

50   terriDeaner   2011 Apr 3, 6:31am  

kimboslice says

Why should I take personal responsibility for things that have nothing to do with me?

Just a suggestion. Your comments indicate that you espouse a personal philosophy of tolerance for collective irresponsibility:

kimboslice says

Some people also were just ignorant and didn’t see the consequences of easy lending standards. Many people believed that this asset bubble would behave differently and never pop.

Ignorance and negligence do not relieve people of responsibility.

kimboslice says

Were people brainwashed into buying things they do not need and use credit to get them? Of course. Does everyone want guys to buy things and spend their dough? Sure. Is this a “boomer” phenomenon? No way.

Stupidity does not relieve people of responsibility.

kimboslice says

Funny but I do not see only boomers spending money they don’t have on iPhones, iPads and Abercrombie sweatshirts. I was in a very fancy shopping section of Austin Texas and the people almost absent from it were boomers come to think of it.

An astute observation! Yes, the GenX and GenY generations, having learned how to be greedy, selfish fuck-ups from their parents, now share in the responsibility for continuing to ruin our economy and society.

By the way, what did your parents teach your generation? What kind of economy did your generation inherit from them? (hint: a PRODUCTIVE and PROSPEROUS economy)

51   FortWayne   2011 Apr 3, 10:34am  

terriDeaner says

Ignorance and negligence do not relieve people of responsibility

just like the law, ignorance of the law does not mean one can break it.

52   American in Japan   2011 Apr 5, 2:00pm  

@thunderlips11

Great comment (just above).

53   bubblesitter   2011 Apr 5, 3:12pm  

APOCALYPSEFUCK says

Thunderlips, in a few years, employers will just hire snipers. It will save on severance and the share holders will demand it after it is used effectively a few times.

Wow! Sniper! Hottest profession of the future.

54   klarek   2011 Apr 11, 10:28pm  

George Carlin says

...........
Something else I'm a little tired of hearing about, the Baby Boomers. Whiny, narcissistic, self-indulgent people with a simple philosophy: "Give me it, it's mine! Give me that, it's mine!"

These people were given everything. Everything was handed to them. And they took it all, took it all: sex, drugs and rock'n'roll. And they stayed loaded for 20 years and had a free ride. But now they're staring down the barrel of middle-age burnout and they don't like it. They don't like. So they turn self-righteous and they want to make things hard on younger people.

They tell them abstain from sex, say no to drugs. As for the rock'n'roll, they sold that for television commercials a long time ago so they could buy pasta machines and Stair Masters and soybean futures. Soybean futures.

You know something? They're cold, bloodless people. It's in their slogans, it's in their rhetoric: "No pain, no gain," "Just do it," "Life is short, play hard," "Shit happens, deal with it," "Get a life." These people went from "Do your own thing" to "Just say no!" They went from "Love is all you need" to "Whoever winds up with the most toys, wins", and they went from cocaine to Rogaine.

And you know something? They're still counting grams, only now it's fat grams. And the worst of it is we have to watch the commercials on TV for Levi's loose-fitting jeans and fat-ass Docker pants because these degenerate, yuppie, Boomer cocksuckers couldn't keep their hands off the croissants and the Häägen-Dasz and their big fat asses have spread all over and they have to wear fat-ass Docker pants. Fuck these Boomers, fuck these yuppies... and fuck everyone, now that I think of it.
...........

55   American in Japan   2011 Apr 11, 10:42pm  

I won't generalize all Boomers but there is much true in hese posts. It is definately harder for Gen-X and Gen-Y to make it. I just hope people will try to realize the facts.

56   justme   2011 Apr 12, 1:33am  

There is much to dislike about Boomers, but everyone should realize that they contain the same DNA as the rest of the population.

In other words, if Gen-X had been born into post-war boomer circumstances, the outcome would have been the same. And I'm sure we all can agree that Gen-X and Gen-Y have some faults of their own (anyone care to elaborate?)

If you want to fix the flawed life path of the boomers, you need to fix the political framework that made it happen. That's were the solution is.

58   pkowen   2011 Apr 12, 2:13am  

klarek says

we have to watch the commercials on TV for Levi’s loose-fitting jeans and fat-ass Docker pants

Don't forget Viagra. After all, a man who knows how to put a bottle of water in the radiator of an over-heated Chevy knows just what to do when he can't get it up!

59   klarek   2011 Apr 12, 2:53am  

pkowen says

Don’t forget Viagra.

Not sure if that was popular when Carlin made the rant, but he definitely ripped on it in the past ten years.

justme says

There is much to dislike about Boomers, but everyone should realize that they contain the same DNA as the rest of the population.

Would you sympathize with Nazis because Germans don't have an evil gene?

/godwin

60   ragingpinko   2011 Apr 12, 9:07am  

In terms of housing: older boomers, those who were able to buy before the inflation of the 1970s, like the parents of the boomers, got mortgages in high-value dollars and paid them off in low-value dollars. So say, anyone in their late twenties by 1973. Younger boomers weren't able to do that, as someone born in the mid-1950s was barely out of high school in 1973. Two completely different worlds.

61   Payoff2011   2011 Apr 12, 9:21am  

ragingpinko says

In terms of housing: older boomers, those who were able to buy before the inflation of the 1970s, like the parents of the boomers, got mortgages in high-value dollars and paid them off in low-value dollars. So say, anyone in their late twenties by 1973. Younger boomers weren’t able to do that, as someone born in the mid-1950s was barely out of high school in 1973. Two completely different worlds.

Ok I get it now. The bad boomers are the ones who are already retired?
The ones who really made out are those who could sock away significant sums in the 80s, when money markets were paying 16-18% interest (FDIC guaranteed baby!). Unfortunately, I didn't have much to put away during those years, I was paying 13% on a mortgage loan.

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