Sunday, August 28, 2005

Shame on Lereah

David Lereah the chief economist ( cheerleader) for the National Association of Realtors had this to say to the LATimes:


"If you paid your mortgage off, it means you probably did not manage your funds efficiently over the years. It's as if you had 500,000 dollar bills stuffed in your mattress."


Wait a second. Let's say interest rates stay at 5.8% and you take out a home equity loan or don't pay off you mortgage, then those borrowed dollars are costing you about 4.5% ( adjusted for tax breaks). If you keep the money under your mattress then it is costing you the price of inflation per year. It is clearly not the same. Shame on Lereah.

7 comments:

  1. If you paid off your house, bless you. You are no longer dependent on it's value to keep you in the black AND you have something few Americans have - a paid off mortgage.

    ReplyDelete
  2. Duhhhhh, morons! FIrst of all, the deductable interest my a mortgage is enough to lower my taxable income substantially. Secondly, I use the money to procure other investments that dwarf my mortgage's intrest rate. Furthermore, I can purchase, with cash, higher-interest-loan items such as a boat, a new car, or his and hers Harleys.

    And finally, I can hire Sally away from her sea shell selling job on the sea shore to replace the six sick slick slim sycamore saplings ruining the lush landscaping around the fat estate I purchased with the money I made flipping!

    ReplyDelete
  3. Mr McNasty is obvioulsy the product of a Top-Secret, highly classified military inbredding experiment that worked perfectly.

    ReplyDelete
  4. My townhouse I bought 13 years ago is paid for- I feel its one less thing to worry about- and gives me more piece of mind.
    David Lereah is one of the biggest con artists and shills of all time- in a few short years he will remembered only by those he mislead.And the memories will be anything but pleasant.

    ReplyDelete
  5. David, you have to stop reading dailykos and other loony left sites, their style of hyperbolic moralistic rhetoric is seeping into your posts. "Shame on" him? Just point out how he's wrong and move on. What purpose is served by "shaming" the man? Also, you are pretty (over)confident in many of your predictions: "A soft landing will NOT happen. There will be a bang. A hard landing scenario is inevitable." I guess, if you turn out to be wrong, I can say "Shame, shame" on you, right?

    ReplyDelete
  6. I guess we have to listen David to the overwelming rhetoric from the far right- and their minions from Bush to the gop right wing reationary congress- and their wonderful 'ownership society' which is about to implode- keep up the great blog- and tell it like it is- not the propaganda manifesto from FOX News and Karl Rove.

    ReplyDelete
  7. Paying off your mortgage is a very safe move. If you have other investment opportunities that will yield more than the interest rate on your morgage, then it is better to keep the mortgage and make the investment. One must consider the investment risk relative to the additional return.

    ReplyDelete