Henry Limpet,

There is no way that the banks will lend money to just anyone in the future. This country is broke and will NOT be able to bail out the banks again. This crisis is NOT over yet, we have a long ways to go. It took decades to get into this mess and it will take years to get out, that is if we work at it and the way our politicians are I don't think we are going to make it. Within five years we will have over $20 trillion in debt and with a 3% interest rate we will end up paying OVER 25% of the nations income just to service the debt and that is UNSUSTAINABLE.

I remember listening to an interview on NPR in 2009 by someone that used to work for the IMF and his job was working with countries that had too much debt. He said the problem in the US is the debt level, and until that is addressed, nothing else matters.

Unfortunately I think he was correct, and we are still not addressing the debt. Yes, it's going to be painful to correct it, but the pain is only going to get worse the longer we put off fixing the problem.

This is a fine line for any president to walk. This leader needs to balance growth, taxation, deficit, debt, international crisis, natural crisis, etc.

When I see such divided government to the extremes it tells me they are all right and wrong and we need to pull the good stuff from all ideas and blend them together into a plan that works over the next decade, not just the next quarter.

Cutting everything to the bone now is cutting your own throat the quick way.

Spending more than you make is cutting your own throat the long way.

There needs to be fiscal responsibility, budget balancing and a long term vision and plan as to where we want to be as a country 5, 10 and XX years down the road. With no vision or plan, we will just keep living quarter to quarter with only short term achievements production long term mistakes.

Tiggle,

My thoughts exactly!

I don't like going further into debt, but I realize cutting now can do more harm than good (both short term and long term). However, I would also like to see cuts and tax increases that kick in automatically once certain economic thresholds are achieved. (ex: remove all of the Bush tax cuts once unemployment is below 6%).

There are lots of places to focus on.

1. focus on government waste. the problem is this will never be done because the leaders that create this team will also be found guilty.

2. medicare fraud. There's plenty abound. scooters for elderly that cost $6,000 each? I think not.

3. social security means testing. If you don't need it, you don't get it. Think of it like insurance, unless something happens and you really need it, you pay in without getting any of it back.

4. consider capital gains like cash. Did you know that capital gains taxes are only 15%? Why is this so important? Because that's how the high earners get paid. Did you know they can use their stocks to barter for goods and services? Yup. Let that sink in.

5. eliminate shell companies that hide money to avoid taxation. This is another trick for top earners to avoid paying their share.

These are just a few of what would immediately have an impact on deficit reduction.

http:// sanders.senate.gov/petition/?uid=f1c2660f-54b9-4193-86a4-ec2c39342c6c
http:// www. americanoverhaulact.org/
http:// www. americanselect.org/
http:// www. thepetitionsite.com/5/take-back-the-power-of-the-vote/

Ton- Unfortunately I disagree. Have you seen the latest from the Congressional Banking Committee? Mr. Frank is demanding that the banks extend loans to risky people again (just like what happened up to 2008).

I just heard an interesting piece on the state of real estate and it was quite shocking. In two long island counties there are between 80,00 and 100,000 homes currently in stages of default (no payments, pending foreclosure, in foreclosure, preparing for short sell.....) Those were starter homes, smaller houses. The real estate jockey speaking said if you want to sell your home to get it apraised today and sell it at today's appraisal, not a few months ago value. He said that once banks start to move against foreclosures (fairly soon) that the market will be flooded and the value of housing will drop massively as there will be so many on the market. He then noted that it will trickle up to the more expensive homes and so forth. So, if you believe him, the drop in values will put others under water and perpetuate the same problem.

BTW- He said that if you want to buy, wait six months to a year. Quoting, "...you won't believe it...."

So, based on this article and that tidbit, there should be a housing glut coming up (for buyers).

What you miss here, Tiggle is that Capital Gains are profits that have already been taxed as income when they go into Retained Earnings. Then, they are taxed again at 15% when they are taken out of Retained Earnings.

i hope we can all work as a country to solve these problems. one that i see as a big one is medicare-it takes up alot of the fed buget. don't get me wrong, i wouldn't do away with it because so many people depend on it but...well, actually i could see a way to change it into a health care cooperative. that's what i like to call my idea rather than universal health care and i'll tell you why. my idea would have the states administering it, not the fed government. it's an idea i got after realizing that if we put as little as $10 a person into a medical cooperative, we would have $3 billion hundred million a month for health care costs which translates to something like $37 billion 12million? i'm not the greatest mathematician. anyway, a lot of money. now, multiply that times 2 or 3. we could easily pull in over a trillion dollars a year in health care monies. each state would collect its own monies and distribute them to the people as needed. everything would be covered except most elective surgeries(including most abortions-and i'm pro choice-i'm just looking at this from a practical point of view-not idealogical-after all most abortions are elective) anyway, states could borrow from each other in cases of natural disasters and i have ideas to keep down fraud using electronic signing that time stamps every visit to doctor and some kind of identifier like a finger print. i know, this is just an idea, but i really think it could work. we couldn't accuse the government of trying to take over, and more people would be encouraged to see the doctor-get there eyes checks, teeth done, etc which would lend to saving a lot of money in lost wages. also, most businesses would pay little to nothing which would save them untolded millions and the government wouldn't need to keep medicare because this would cover everyone so they would save untold millions. we'd have to have caps on cost for very low income or very large families, but i really think this could be tweeked to work. it would be one way for americans to start taking care of themselves and not relying on their bosses or paying through the nose to insurance companies who don't care.

Tiggle,

The problem I have with means testing SS is it punishes those of us that have been responsible with our money. I've never made 6 figures and I probably never will - but I have always put money aside and I will likely be able to retire reasonably comfortably without SS. However, most of my friends have made the same or more than me, but they usually spend whatever they get each payday. So, they will not be able to comfortably retire without SS.

Is it right for me to pay for their retirement when we both had the same income before we retired? I don't think it's right, and means testing basically encourages people to not be responsible.

Now, if you want to means test SS on how much you made in your life, then I'd be ok with it.

Well, Henry Limpet, I for one had no idea that you "have been in the trades for 30 years". Silly me. I must be watching the wrong news.

Oh wait. I remember once seeing a movie called "The Incredible Mr. Limpet", about a man who turned into a talking fish. Was that you?

But you know what, it was the only photo they could find. This photo has been on nearly every housing report given. And I bet that house is still not finished. LOL

The median household income in the US is close to $50k...most Americans can afford better than a one bedroom rat infested apartment next to a county landfill...

The median household income doesn't mean half of America makes more and half make less. It would be more like 20% make more and 80% make less which means some should get first pick at the "Villa de rat flat."

Dick-2100935

The median household income doesn't mean half of America makes more and half make less. It would be more like 20% make more and 80% make less which means some should get first pick at the "Villa de rat flat."

No, that is exactly what it means. You are confusing "median" and "mean." Median is the middle value, while mean is the arithmetic average value. So, if the median is 50k, then half make equal to or more than that, and half make equal to or less than that.

There was a time when a 1500 sq.ft. house was big if you wasn't a farmer with a big family. Looking at the picture...no more. Just the upstairs alone is more than that.

1500 sq ft IS HUGE if the builders actually make the best use of all the space available. Instead, there is a TON of wasted space, so of course people think they need a bigger house. Think back to houses built in the 40s/50s and how much storage they had built into the walls and above the closets! They don't do that anymore! Quality home building is something only the well-to-do can afford now, all these practicalities are now "add-ons."

My family of 4 share a 2 bedroom apartment just over 1000 sq ft and that is about perfect for us, we just need more storage space. My kids are content in sharing a room but will soon need to get them bunk beds or something as they are getting older (boy/girl).

Dick, nice try, but pffft. At least Google "median" before you refute what it stands for. Foot in mouth.

noting or pertaining to a plane dividing something into two equal parts, especially one dividing an animal into right and left halves.
2.
situated in or pertaining to the middle; medial.

Don't worry, the republicans will still find a way to discredit obama and the democrats for it. Let's hope this sustained growth continues into next year.

Why would anybody build new housing units when there is a gloat of standing inventory waiting to be finished or sold as is?

By building new units now it undercuts to value of every house in America. The bottom hasn't been found yet and the only units to be built should be in areas that are booming because of the new energy fields being developed.

Five houses on one street up for sale and we need another? Doesn't make sense to me. This is what happens when a guy like Barney Frank errors on the side of allowing easy money though people can't pay it back. That alone was enough to inflate the prices of houses and then came the big collapse.

Notice how Obama got rid of Chris Dodd and now Barney Frank? They are two people that people should take a good look at for the source of the housing problem of today.

I worry that Obama and the greedy Democrats will use this to say everything is roses so we need to borrow Trillions more to hand out to their Cronies and make our grandchildren live as slaves to the Chinese Debt Masters.

Ford Man,

I'm building a new home. Breaking ground right after the holidays. Why? Because I lived in my previous house for almost 15 years and I have lived responsibly within my means. Right now the interest rates are at historic lows, builders are hungry and need the work, the land was half the price of five years ago. I can't find a good reason NOT to build right now.

I know that there are lots of unfinished or foreclosed homes on the market. By the time you buy it and put all of the time and money into repairing the damage from sitting empty, you might as well build what you want. I'm not really concerned about what my new home does to the value of any other house in the country. I seriously doubt that it will do anything but increase the value of other homes near by.

ItsAboutTime - While the repubs are trying to blame obama and the dems for the slump in housing the dems will be trying to blame the repubs for luring them into homes they couldn't afford to begin with.

The dems that had trouble making rent payments for some rat infested apartment in the 'hood could suddenly afford a nice home in the 'burbs with mortgage payments and it's the repubs fault.

The Thinker - What have the republicans done this year to help the housing crisis in this country? What have they done in the last 3 years? Absolutely nothing. At least Obama has the courage to put forward a plan.

The dems that had trouble making rent payments for some rat infested apartment in the 'hood could suddenly afford a nice home in the 'burbs with mortgage payments and it's the repubs fault.

I have never said that the republicans are at fault for a democrat having a 'nice home' in the burbs, wouldn't they couldn't afford some rat infested shack. Seems to me, there are plenty of examples on both sides of the aisle where corruption and greed are rampant right?

This is simply one step in the right direction to begin turning this economy around. It's not a mandate for all of Obama's plans/policies.. but it should wake those republicans up to something called.. COMPROMISE.

Dear Evil, You are building for all the RIGHT REASONS but the problem is with the existing units up for sale now. Most of the units that are being built are rentals so your custom house has no bearing on this article.

You in no way are doing anything but good. People that lived within their means are the ones that should be reworded as you are being now. The price of materials is still high regardless of lack of demand but that is a total different subject to explore. Production cost are just that along with increased demand for material from China and India.

I don't know what area of the country you are building but as long as it is in a strong market with demand for luxury homes such as Washington DC you will always have a market for your home. Government workers received a 2% raise per year while most people working in the private sector either lost their jobs or are now working at reduced wages. That along with the fact they don't have to compete with illegals for work is another big factor for the decline in prices of existing homes.

Have a nice holiday and good luck with your new home.

It's on the front page of the Fox Business page...

http://www.foxbusiness.com/index.html

Like I said... Not ONE WORD on something that the general public sees.... Fox and Friends... or anywhere the general public sees it!!!!

Like Ron said, Kevin, see: http://www.foxbusiness.com/index.html

Not finding it; what's near it on the faux snooze page? I don't see any headline about increase housing starts on the link given.

But I thought everything was Bush's fault?

Oh, I forgot...Everything bad is Bush's fault, but everything (anything?) good is due to Obama.

My bad.

Did he plan another vacation?

Jax, so you are saying this IS good news?

Latest poll has Obamas approval rating at 49%. Per GMA.

Joe66, yes Obama is planning on going to Hawaii for 17 days over the holidays. Moochelle and the kids are already at their gated community in Hawaii...

69 vacations

67 fund raisers

117 rounds of golf...

All in the last 3 years...

Hahahahahaha, too funny.

Hey Lynn W: Check your Facts Please.

In 2009, Obama took 26 Vacation days
In 2001, BUSH took 69 vacation days on 77 "vacations"

According to CBS News, Obama (including the Christmas vacation) has taken a total of 78 vacation days across 3 years - Or only 26 days per year, which is the standard number that a white-collar professional gets (3 weeks plus holidays)

By comparison, George W. Bush took 180 days off in his first 3 years (make that 2 months off for every year worked). Reagan took off 112 days (or a little more than one month off every year).

Bill Clinton took the LEAST time off in his first three years - only 28 days... Total.

So...when you think about it being OH so much vacation time, and OH so much golf...educate yourself first....

And when you get pissed about him going to Hawaii....you didn't mind so much when Bush went to Texas... HIS HOME STATE. Hawaii is Obama's. Maybe he should have visited Michelle's family this year instead?

Perhaps you need to read more carefully. I said over 3 years not just one! So why don't you check your facts! There Ebeneezer!!! I know my facts are correct!!!

Quit trying to make Obama out as some kind of saint... He's not

His home state is Kenya.

I wonder if they flew the first dog to hawaii on his own "taxpayer paid" jet again??

CBS news...a wholly owned subsidiary of the dimocratic party...

Yea, I think I see what you mean...

While thousands of troops over in the middle east is expected...having them all home is bad thing? Or like, because my college aged son couldn't afford health insurance...and now that we can, that's a bad thing?

Would you and your Party of Nooo's PLEASE either grow up, or keep all your negative thoughts and comments and devisiveness to yourselves? lol nothing is good for you guys, if it's good for Obama.

Hey, MEEEE, sounds like you need to go back to your parents basement, adjust your tinfoil hat and take your meds, with some Kool-Aid...

Very little of what Obama does seems to be good for the country, you know the USA...the country Obama thinks he's King of...

lol cute. No substance, but cute.

Meee - It's called perspective. There was a time when 26 years old was considered old enough to be on one's own and fending for oneself. But now that the kids want to start in where mom and dad left off and can't afford that standard of living, the economy is lousy. So some politicians decided that the kids should be allowed to start at a higher standard than previous generations.

As soon as your son leaves home, will that rectify all of his financial worries? One day he is your dependent and living off of your benefits and as soon as he gets old enough he will no longer be allowed to. Will that one single day resolves all of his financial issues?

Lynn W. You idiotic comments are as stupid as your photoshop profile picture. How's your teabagging going these days?

Hey, It's MEEEEE. Don't waste your time or pay any attention to poor, sad, bigot Lynn W, just look at her sorry pittyful full of hatred, no substance poor excuse of self expression. Now, what's really sad is that people like her is allow to vote, and because of her ilk look at our once great nation, we're in the gutter, look at what use to be the congress, they turned it into a cesspool, everything they touch withers and dies. fortunately for us the 90% of the voting population is sick and tired of the Teabaggers like her and they're getting "THE BOOT" once and for all in 2012.

By the way Moderators take a look at Lynn W's avatar it is extremely inflammatory is sexually oriented.

Thou,

speaking of inflammatory avatars...you have a swastika in yours...

Ron-1861300 I understand that is probably past your comprehension skills, but the swastika on my avatar is intended to rectified what Faux really stands for, so you see I'm using the swastika to criticize and denounce Faux news. Compende? Capice? Understood? No, I highly doubt that you're able to comprehend. Hey thanks for making an effort.

Hey, Thou...Can you do anything about what Obama "actually" stands for? A swastika is the perfect symbol for Obama and his minions...

STFU!!! You wouldn't know me if you passed me on the streets. The last time I checked this is still America and my opinions are just as valid as yours are!!!

Do you see a dick when you look in the mirror? You sure seem like a dickhead!

Oh and you don't like my avatar? Too bad!!!

Lynn W. Well you just trample on the code of conduct of the vine, so while we are in a country where freedom of speech use to be respected, you are a blatantly violating the CODE OF CONDUCT OF THE VINE. ignorant insulting people using bad words.

I didn't use a single "bad" word. I just call 'em like I see 'em. And my avatar picture is from a magazine ad, nothing sexually oriented about it. Obama bows to leaders of other countries, he probably kisses them too!

Your comments fit the ignorant insulting people description just as much as mine do...if not more so!

Thou,

Your intent was pretty obvious...no advanced comprehension skills were needed. I personally think the use of a swastika is much more inflammatory than a picture of 2 guys kissing (even if one happens to be the president).

I realize you may think such behavior is witty and somehow makes you appear clever, but for me, these types of things just make the poster look like another party-line sheep.

Ron, Lynn... Ha, ha, ha, ha!!!!! Prepare to suck on 4 more years of President Obama, and needless to say a very long time of a Democrat Congress and Senate, you're getting "THE BOOT BY POPULAR DEMAND!"

Lynn W. Not a single bad word huh? what do you call these words writing by you:

"STFU!!! You wouldn't know me if you passed me on the streets. The last time I checked this is still America and my opinions are just as valid as yours are!!!"

"Do you see a dick when you look in the mirror? You sure seem like a dickhead!"

Oh and you don't like my avatar? Too bad!!!

• #8.9 - Tue Dec 20, 2011 1:42 PM EST

Thou- since you think you are so smart... STFUis an acronym... you'll have to look up what an acronym is (if you want to know what it means)... and the last time I checked - dickhead was not a bad word...

I'm going to put you on ignore, so I no longer have to see your ignorant, worthless comments, on any other articles, any longer...

I enjoy the fact that you had to restrain your obnoxious self after a blew the whistle on you, take your time off to meditate about why is it that you're so angry. Enjoy your suspension ;)

Ha, ha, ha on you! I didn't get suspended! Guess the moderators don't see it your way... Just ignoring YOU and your ignorant remarks!!! Ha, ha, ha, ha!

JOSH, exactly!

Too many people either rushed into the American Dream or felt they were "owed" it, and look where we are. Personal responsibility has fallen by the wayside in the last three decades, and it only makes a bad economy worse on both the macro and micro levels.

Exactly, we all should have government jobs and then...no more worries. I respect the military men and women but come man working in any government job is NO indication of what the real work force of the country is up against

James: and you've got the 4 year degree for that 'easy' government job, right? Try getting a job without one and then try your lecture about "real work force".

Proof that the trickle down economic theory works.

Correct. There should be a concerted effort to rehabilitate all those abandoned homes and get people back in them.

So Michael 1_4 your idea is for all of the homebuilders to find other jobs until the glut of houses are sold. How many people are out of work now? Do you really want to add more? I work for a custom homes company. We build green, energy efficient homes world wide. Since the housing market collapsed my company has went from over 110 employees to less than 60. That meant 50 more people had to look for work in a state with over 10% unemployment. Our company is debt free and we haven't taken a dime from the government bailouts.

Some areas have a glut of homes while others have need for additional housing. It's impossible to move the extra homes to areas that need them.

Perhaps you should suggest we eliminate another industry, maybe yours until the market improves, moron!

Sure Mike, people who make their living building are crazy to want to start building again. Who wants to make money producing something? Can't we just live off the taxes of the rich? The builders didn't create the problem the banks did.

My company only builds a home after it's paid for. So our inventory of unsold homes is zero! We must be crazy to advertise for more customers. Afterall wouldn't they be happier moving in to a foreclosed home, that has most likely been trashed by the previous owner? Building creates jobs and taxable revenue.

I guess we should really want to help out the banks and relieve them of the homes they had to repossess because they made a bad loan in the first place. Wait we already bailed them out and now they are paying themselves big bonuses, but they need more help.

Great post Mike!

It's not the worst that can happen. Wealth has never been produced without a slave class.

I think in most peoples minds that the greedy need for wealth is a good chunk of what has and is distroying this country. And yes, a slave class is needed for great amounts of wealth. But, I don't believe that the majority of americans want to be slaves.

If anyone wants a history lesson on greed and slave/serf society, research the corn laws of england and what that did to englands society. The riots and killings that the starving poor did to the rich. Interesting reading.

considering your moniker, I'm presuming you know what hyperbole is? Considering the vast majority of Americans are working and not serfs or slaves, methinks you're just a wee bit over the edge?

i think you're missing the point here. yes, the vast majority of americans are working, but what's the use of having a job if you STILL can't pay your rent or buy food? the problem isn't nearly that people don't have jobs-they don't have jobs they can live on. that's why 1 in 2 americans live below the poverty level. if things are so great then why has the poverty level risen steadily over the last 30 years? big business is absolutely trying to create a slave state-we just won't have physical chains around our ankles. so, first they take away jobs for not just a few years but for the last 30 years! and now, they finally decide to bring the jobs back, painfully slowly, and now they're only paying a fraction of what they paid before and they are hiring part time and contractors because they don't have to pay as many benefits! so, now you have the same americans who used to be able to afford a home forced to live in apartments and both parents have to work just to make ends meet. and if big business has its way, we'll be sending our children to work instead of school because they are trying (koch bro come to mind) to destroy public education by stripping it to the bone and before long you'll only be able to send your kids to school if you have the money! so, what we will end up as is a country right out of the 16th century europe with our business overlords brainwashing our grandchildren into thinking that living in tenement housing, two or three families to a dwelling and going to work when you're 12 and working until you die is OK!!! BUT, that's ain't gonna happen in this country. we like our mtvs, we like a ipods and our designer bags. the people protesting in the streets for the last four months all over the country is not going to go away. they will find their way into politics and we will free ourselves from our business overlords one way or another. "The times they are a-changin'. "

alessa; majority of Americans today do not have the knowledge and patriotism you have; they are brain washed and dumb down by the corporate media and the propaganda that the pentagon and Wall Street spew out! Keep up your true thinking and your patriotism!

MJ, thank you! Well said. I'm in Fairfield County, myself, BTW. Talk about an overpriced market!

That was Cleveland, by the way.