I keep hearing that little phrase. Every time I talk to one of my buddies or one of my clients. Like talking to an elderly person and all of a sudden they get that wanderlust look in their eye and start remembering how it was back in the day.
Here we are in 2011 and this recession or depression is supposed to be over, or close to over, depending on which articles you read back in 2008. But, no matter how you slice it, housing in this country is still on the ropes. I know builders and real estate agents in damn near every state of this country who are saying "back when I had money" as if it ain't coming around again.
The idea that the "money" in this case dried up so quickly is disheartening and scary. And what is worse is that with lower housing prices comes lower property taxes, which in turn leads to lower state revenues. And now states are starting to throw my least favorite phrase around.
As more and more states (read states political leaders) hearken back to days when they had money, they start to look our way. They want our money. And soon. Instead of looking for ways to make cuts, and I realize drastic cuts are what is needed, they look to take more of ours. Even though cutting works for the average household, many of our elected idiots still do not see cuts as the answer.
More taxes, more taxes. Tax the rich. Taxing the rich is a short term idea. How many rich are going to sit around and get taxed to death. Panama looks pretty good right now if you are rich and dont' want to pay for everyone else. Besides many of the folks who once made over $250K now wonder what happened. I know a lot of them. I bet lots of folks here on AR are on the list.
The long term solution, and the toughest one for political types, is to cut the crap out of spending and keep our taxes low. Let the people catch their breath. Obviously the good leaders in Illinois missed that boat. Here in Idaho our leaders are still hashing it out. Hopefully they take the right tack. I saw where Jerry Brown, who I pretty much disagree with on most things, is taking taxpayer funded cellphones away from state employees. Good start Jerry.
I think it was Margaret Thatcher who said "the problem with socialism is that you eventually run out of other peoples money". I submit that we are quickly headed in that direction.