Trump and L.A. housing. Low rates now guaranteed forever? (Kennedy: credit, taxes)

[69Charger]

If Trump cuts taxes like he says he will, this should continue to balloon the national debt. That should continue to solidify the low rates for eternity argument. Sounds bullish for maintaining current status of SoCal housing prices.

[Hippityhop]

Originally Posted by 69Charger

If Trump cuts taxes like he says he will, this should continue to balloon the national debt. That should continue to solidify the low rates for eternity argument. Sounds bullish for maintaining current status of SoCal housing prices.

Anyone that's been trying to tell you that SoCal prices are going to magically become affordable "when the bubble bursts" is full of hot air.

[ryanms3030]

Originally Posted by 69Charger

If Trump cuts taxes like he says he will, this should continue to balloon the national debt. That should continue to solidify the low rates for eternity argument. Sounds bullish for maintaining current status of SoCal housing prices.

Interest rates have gone from 3.38% last Tuesday to 3.8%. Everything I've read in the news is telling me they expect rates to skyrocket now ....but they also told me Hillary was out next president

[powermargin]

Originally Posted by 69Charger

If Trump cuts taxes like he says he will, this should continue to balloon the national debt. That should continue to solidify the low rates for eternity argument. Sounds bullish for maintaining current status of SoCal housing prices.

You have the causal relationship backwards. Cutting taxes and other proposed measures are inflationary, which reduces the value and prices of bonds in general, and increases rates. As others have mentioned, rates spiked by half a percent in the past week.

However, I don't see this as ending the bull market for Socal housing, but it may reduce the growth rate somewhat.

[JustMike77]

Originally Posted by 69Charger

If Trump cuts taxes like he says he will, this should continue to balloon the national debt. That should continue to solidify the low rates for eternity argument. Sounds bullish for maintaining current status of SoCal housing prices.

Unless I'm mistaken (always a possibility), the Kennedy and Reagan tax cuts actually resulted in an INCREASE in overall tax collections, so the debt should not necessarily increase.

[ryanms3030]

Originally Posted by JustMike77

Unless I'm mistaken (always a possibility), the Kennedy and Reagan tax cuts actually resulted in an INCREASE in overall tax collections, so the debt should not necessarily increase.

That might be true but let's not forget that Trump promised to start collecting from countries that we provide protection to and balancing the debt that way. It's worked for the mob for decades!

[Tulemutt]

Originally Posted by ryanms3030

... let's not forget that Trump promised ...

Um yeah. There's something you can bank on, eh?

[Astral_Weeks]

Originally Posted by JustMike77

Unless I'm mistaken (always a possibility), the Kennedy and Reagan tax cuts actually resulted in an INCREASE in overall tax collections, so the debt should not necessarily increase.

The U.S. was the largest creditor nation when Reagan took office. The debt tripled under Reagan. Supply side economics was "voodoo" economics then and it is voodoo economics now.

https://mises.org/library/sad-legacy-ronald-reagan-0

[Astoriahoney]

Originally Posted by Hippityhop

Anyone that's been trying to tell you that SoCal prices are going to magically become affordable "when the bubble bursts" is full of hot air.

LOL! Right I keep waiting for that! If it didn't burst during the 2008 recession nothing will affect it.

[Csonka]

Originally Posted by Astoriahoney

LOL! Right I keep waiting for that! If it didn't burst during the 2008 recession nothing will affect it.

Prices crashed in 2008-2009