Fed chief: Reduce U.S. role in housing

  • Article by: CHRIS SERRES , Star Tribune
  • Updated: April 5, 2011 - 8:50 PM

Minneapolis' Kocherlakota said the market relies too much on government guarantees.

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garcialaterApr. 5, 1112:10 PM

That's pretty funny coming from the criminal enterprise known as the Federal reserve. What's a dollar worth mr karlikota?

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MMMH2OApr. 5, 1112:13 PM

Would he also agree that the Fed should stop loaning money to the government? That would take away the competition for funds, and lower the demand for money would manifest as lower interset rates to borrowers. Maybe he could start by helping those who believe a bigger government should be bought for at other's expense. You want government expansion, maybe you should have a savings plan to be able to buy it.

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dtlundApr. 5, 1112:59 PM

He forgot to mention that the mortgage interest deduction only works for the upper middle class and the wealthy. For people who make less than that, their mortgage interest payments won't be much more than the standard deduction, making the mortgage interest deduction another tax break that only works for people who don't need it.

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webfootApr. 5, 11 1:09 PM

I'm middle class and take the mortage deduction. Leave it alone, it's pretty much the only thing that allows me to itemize on my taxes and get a halfway decent refund check.

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malachyApr. 5, 11 1:14 PM

mortgage deduction is unfair, for sure. well, it would be fair if renters could deduct their year's rent totals and if people who owned their homes could deduct the equivalent of what a payments would be if they didn't own it. otherwise, you're favoring one group over others.

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mnhockey99Apr. 5, 11 1:16 PM

webfoot - AMEN!!! We use this "extra" money every year to pay for improvements to our house, go on trips, etc.. without it, we probably wouldn't spend much (if anything) on these "nice to haves".

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HapsterMNApr. 5, 11 1:45 PM

Kocherlakota...also questioned the longstanding federal tax deduction of mortgage interest payments. He argued that the deduction encourages people to take on "large amounts of debt," instead of saving. How out of touch is this guy? On the reasons to own (and for those needing to take a mortgage who would probably rather pay cash) the LAST thing I think about -as I'm sure many others do- is I cna take on large amounts of debt since I write it off anyway. When I make a payment I'm certainly not thinking Yippee Skippy, it makes the pain of paying all that much better because I can deduct it!!! I'm not happy I have a mortgage but I'm plugging away and in all honesty, if I didn't have it, I would be giving more to church and can deduct it there instead. The mortgage deduction is a nice to have but will crush the middle income and below folks. This guy is a yabbo.

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andersod62Apr. 5, 11 2:21 PM

""If we truly want to encourage home ownership, we should contemplate programs that provide incentives for individuals to save and become equity holders in their homes -- and, by extension, in their communities," WELL DUH....if the individual has more buy in they are more likely to keep care of it. About time.

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andersod62Apr. 5, 11 2:22 PM

"the housing market has become overly dependent on government guarantees. About 90 percent of all mortgages originated over the past two years are guaranteed by government-controlled entities such as Fannie Mae and Freddie Mac, a situation that he referred to as "not a sound long-term strategy." YA THINK...?

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rlwr51Apr. 5, 11 2:36 PM

Been saying that for years. Couldn't agree more. Also, interest earned on savings, at least up to a certain point, should not be taxable.

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