Thread: Ask me about the economic crisis

Start investing, fuckwit.

The most pertinent question, Scarf, is: why have property values gone done, but property taxes gone up?

Also you were a bit misleading because unless you are the victim of predatory lending, are on a fixed income based on investment returns, plan to retire in the next year, or invested heavily in a company that is being allowed to fail (ie. not receiving a bailout like its competitors) and are therefore an idiot for not diversifying your portfolio, or are at risk of losing your job, this will not affect you much. Plan to skip the family vacation this year.

Originally Posted by Atmosfear

Start investing, fuckwit.

The most pertinent question, Scarf, is: why have property values gone done, but property taxes gone up?

Also you were a bit misleading because unless you are the victim of predatory lending, are on a fixed income based on investment returns, plan to retire in the next year, or invested heavily in a company that is being allowed to fail (ie. not receiving a bailout like its competitors) and are therefore an idiot for not diversifying your portfolio, or are at risk of losing your job, this will not affect you much. Plan to skip the family vacation this year.

To your first questions, property values have gone down because the housing market was artificially inflated due to interest rates set by the Fed. Many lenders got laymen excited about things like adjustable rate mortgages, and when they adjust up even just a little bit of a percent, all of a sudden people can no longer afford their mortgage payments. I wasn't aware of property taxes going up significantly, but I would imagine if they have it would be because local governments are feeling the crunch of their own loans going uncollected, lowered revenues from things like fuel taxes etc. When the gas prices dropped, in Indiana for example they predicted a $400 million shortfall in the budget for roadwork because they weren't getting as much fuel tax revenue anymore. Raising property taxes would be one way to partially counteract that.

To the latter part of your post, you forget that even if YOU are doing everything perfectly, your employer is feeling the crunch and may just have to lay you off. Then what? Not having a job and being in an economy when few companies are hiring makes it hard to pay for that house and two cars.