On Thu, 30 Dec 2010 11:30:54 -0500, wrote:

On Thu, 30 Dec 2010 07:37:26 -0800 (PST), "
wrote:

On Dec 21, 8:27*am, harry wrote:
Canadian property bubble, followed by general collapse due to
dependency on exports to the USA.
After that Australia.
Saw it on Russia Today so it must be right. Kieser report.
He's been pretty accurate so far. *?

http://realestate.aol.com/blog/2010/..._lnk1%7C192609

Depending on where you live, the excess supply of houses was estimated
to be between 5 and 10 years in 2007. They simply built too many that
were gobbled up by speculators believing things would always go up.
They are still working through that excess inventory.
If they drop the mortgage deduction on second homes that will get
worse.

If interest rates go up significantly it will get much worse. However, the
building trades will essentially cease to exist.

If the mortgage deduction on the primary home was dropped you would
see another 2007 type crash. At that point the only people who would
get a deduction would be landlords on rental property (Schedule C
business expense). One of the biggest tax incentives to own would be
gone.

Tax incentive, yes. Biggest incentive, no.