Earlier quoted context omitted.
>>There is another side of this that the article doesn't touch on: home ownership. Oh boy. There's so much I can say about this topic, and none of it is positive. Basically, the way our culture mindlessly promotes home ownership is insane. Absolutely insane! Every time I hear people complaining about "throwing away money" by renting, and how they would rather put that money into a house, I want to hold them by the sh…
It's a very simple mathematical error - people compare the cost of a mortgage payment with the cost of a month's rent, failing to take into account that only a tiny fraction of the mortgage payment actually becomes equity. If they actually sit down and work it out, most people are astonished at how much flexibility they sacrifice for that small slice of equity.
Of course, the tax deduction is worth something, inducing people to do things they would not otherwise do. And no capital gains tax on profits. And first time assistance. And whatever else there is running up government deficits.
Its a big ponzi scheme. It blew up once and I guess they know how to profit on the way up and on the way down. Its Mr. and Mrs. Joe Average who get skewered.