Solution to the Economic Woes

Firstly, let me state that I am an idiot. I know no real knowledge of how an actual economist thinks. I am a regular person who happens to be caught up in the middle of this disaster.

The general consensus is that Real estate is at the root of this current disaster. At the present time, the market is flooded with properties for sale, and very few investors are purchasing these properties. So we have a huge gap in employment associated with the building industry. It trickles down (or up depending on how you look at it) to all aspects of our existence. People can't find jobs, so unemployment goes up and our tax dollars are spent assisting the people who would be much happier working than getting assistance.

Here is my proposed solution:

Grant a 3 year reprieve on capital gains tax. This way, any investor can purchase a property without fear of losing 50% of his speculated financial windfall to the government. Properties would sell quickly and the supply would revert back to a normal level. The housing prices would stabilize on a real number instead of the inflated prices of the last few years. Once the housing market is repaired, the unemployment should start to go down as more builders would be actively building properties and people could go back to work. The investors would make money, the banks would have money flowing in and out, a stimulated economy would lessen the fear of spending and we could actively get back to living, instead of worrying. The loss of capital gains tax should be washed out with the reduction of unemployment payouts and the economic boom. And the best part is it's easy to do.

It this idea won't work, please explain it as if you were talking to an idiot.

reply to post by network dude


Your opening statement implies true wisdom, as you may be able and willing to learn. Congrats on that.
Now for the real solution, stop playing their game, does anyone not realize the house always wins??
Wait for your trinkets, don't believe all of the glitter, it will be outdated before you buy it anyway.

reply to post by g146541


Oh, trust me when I say that I have learned. As soon as the market returns, My house will be sold and my equity will buy my next residence. No bank involved. I am not going to go down that road ever again if I can help it. But in order for my house to be sold, the economy needs to get a bit better so people will be able to buy my house. If they want to be the banks B*tch, that's their business. I also would like to start making some money again. being broke sucks badly.

Funny that more people would not want to debate, learn or discuss economic strategies.
I figured this thread would have taken off.
My mistake.

reply to post by network dude


It is not that I dissagree, but I would like to add a couple of question, and statements. I don't think the banks want the actual housing market to level out just yet. I think their books are still cooked, based on the inflated prices of 2007-8. If properties start to sell at new fair market prices, the values of homes still with mortgages goes down further...possible putting more and more people upside down. In turn inciting more people to walk away, wether because of underemployment or un employment or whatever. I think most are probably upside down if the truth were to come out. But their intent is to keep homeowners thinking there is still value and equity in their homes. I also think it will all eventually come out in the wash. Banks were just hoping to fake it as long as possible. I agree with you...but I don't think this really helps the banks in their minds. They are no longer happy making money hand over fist. They are too greedy. Look at their earnings in the past year. It is truly sickening.
They do not care to fix anything. If they wanted to I'm sure with all of their money and power, they could. They were successfully bailed out. They could get a little tax amendment for sure if they thought it advantagous. And that upper hand at our expense is ok with them.