U.S. housing market a victim of Government bad decisions

Everydecision has consequences. Most decisions are thought about for theshort term; failing to look at the long term effects on the planet,world, country, economies or your home.  Many years ago, when Alan Greenspan was Chairman of the Federal Reserve, financial policies were writtenthat encouraged us with ways to save and spend our money. During thisera, your home was considered a form of savings, instead of actualmoney in the bank or tucked away in a shoebox. At that time, your homewas a good place to save your money and supported the American dream toown our own home.  Decisions in years past originated within ourU.S. Congress that helped contribute to the current housing/automotivecrises. We are now feeling some of the long term effects of thatdecision. During the early 90’s Congress changed the income taxdeduction that Americans could claim on their 1040 income tax return.We could no longer deduct interest on bank loans- only the deduction ofinterest on our home mortgages. So for example, the car we financed-that costs as much as the price of a home 20 years ago, the interestwas no longer a tax deduction. This now created the potential for twomajor U.S. economic sectors to be affected by a simple decision toincrease our taxes. We are now living that reality. Once the interest deduction was lost, greedy newbusinesses emerged with new ideas to give us easy money to buy ourcars, toys, etc.. But the catch was to use the equity in our houses-ourformer “savings account”.   The “easy money loophole” allowed the American people to still receive an interest taxdeduction. This all worked fine until all equity was eroded caused by 2 nd and 3 rd mortgages and at the same time housing value decreases occurredthroughout the United States. The housing crises had to happen. Thehousing glut and fewer qualified buyers are some of the consequences ofbad decisions; resulting in homes for sale   onthe market for extended periods of time. Primarily because Congressmade a change in our income tax deductions in a feeble attempt toincrease taxes. The vision of Former Chairman of the Federal Reserve Alan Greenspan to consider our homes as another safe and solid form of saving is a thing of the past. We all lose. Not only did the U.S. housing market suffer, lookat the failing automotive industry. Any increase in tax revenueobtained from the loss of the interest deduction on automobile loans isnegligible compared to the billions of tax payer dollars used tobailout General Motors and Chrysler. Our country was founded by wise people that hadthe foresight to plan for our future. Decisions were based upon soundand grounded principles. Their foresight stood the test of time forover two centuries. Our elected leaders of today took less than tenyears to cripple our financial strength. So are there no wise men andwomen in government today? Every two to four years our country postsjob openings for key people to run our government. I encourage thosewise and unselfish people to send in their resumes and run for anelected office.

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