How does rising housing prices help those that don't own a house?
And who is it that doesn't own houses? For the most part--Poor people.
So why is the government spending hundreds of billions if not trillions of dollars to raise the price of housing?
Is this some perverted form of trickle down economics? How come Democrats support these housing programs that screw over the poor?
And what about renters? Don't they count?
2:05 PM PT: http://www.csmonitor.com/...
2:06 PM PT: Because it is profitable to get people into debt. Those profits result in political pressure to pass laws encouraging mortgage debt. For everyone above the buyer on the food chain – from seller to real estate agent to bank to Congress, the White House, and the Federal Reserve – there is a strong interest in getting young and inexperienced families deeply into debt. Once in debt, new buyers, too, become part of the game – they need to find new housing victims if they want to eventually sell at a profit.
Thus we have the mortgage interest deduction, Fannie Mae, Freddie Mac, the Federal Housing Administration (FHA), and other harmful government programs, all of which serve primarily to increase the amount of mortgage debt. Since most people don't do math very well and will take on as much mortgage debt as they can, this government facilitation simply results in higher house prices.