I get a text -- comes in that says some -- on the tax attorney. And -- said Tommy is a tax -- the question is why should know homeowners southern non homeowners subsidize your purchase of your house. By giving you a tax deduction if I ran I don't get to deduct any part of my -- giving you a deduction. It's like the government giving you money to buy your house. And I think that comes with -- at the presumption that. Come. It's not my money to begin win. So if moment isn't files and in -- an advantage on like the direction of the -- browsing. And financial markets at the Hudson Institute John it's been a -- Tuesday morning some maybe you know me. My that it we're getting Andean wisdom. Brought up as where a lot of people in this area I don't know if that's -- neat thing to south Louisiana that. You know you'd Hugh Grant only when you can't afford buying because -- equity and -- in the house and you and you own it I know they have been bubbles but. Generally speaking if you make a smaller virtues she can't go wrong because of you -- a thousand dollars a month for rent. As everybody's parents would element and I know the people hearing -- unidentified eyewitness. You've thrown it down a garbage can if you put it into my house and you got something that you can eventually. One day sell -- if not sell at least you own it you have a place to -- Is it's still like that -- where'd where'd dated get off of that message. And YE do you do some economists say that. It only helps the riches home mortgage interest deduction. Well a couple I'll jump in -- club -- started -- start. Specter backed the beginning it's your parents are perfectly right my parents are perfectly right. You should not be. People when you can afford to call. Exactly nothing against rental property but when you can't afford to own. And when you want to and that may be reasons not to my wife and I were married or. Five years before it bought our home but we moved three times imposed by the -- and we know we're -- move so we didn't. Think it was worthwhile to buy out some and so house and buy -- house to get. But but. At this point two the the main reason people are talking about not. Being able to right occasion by by apple is because we've had a bad recession. And it's been bad -- -- housing in particular. And it's taken a very long time to get better. And that's talks on the a lot of people and some Omar are losing their homes and that's that's serious. At the saint. Our -- dates should have been qualified to buy their home to begin with you today that it. -- should not. Some sure that some people just caught in bad law. The the market in mayor for what their. -- neighborhood producers what their community produces dries up apparently you can't booms and busts. -- let me go to -- and a couple guys he -- to take -- time with me -- it seems to me regardless. Of the market. If you're live in the animal issue moving if you pay your note. I'd wait for the market to come back but at least you got a place to live you don't sell when it's slow you buy one and slow and you sell when it's highs of one MI I missing here. I don't think you're missing anything the the reason. You want to -- one of -- I mean or why you want violence over the course same reason you try to do better in the stock market perhaps -- success perhaps not. The reason for. Holding on -- your house. Is that prices do come back we have after every recession may do after the Great Depression. You really you really need to be able to. Stop hold it -- that prolonged pot that's and that's important. Sometimes people get stock. -- the -- in the. Exactly NC where that happens you lose your job something else happens. Yes and that and there are people who were the best world in the world. Do lose their columns and that's -- -- of stuff that is no fun for. Any other thing John I've known people at that they've decided to be an entrepreneur or and they put their house up the house is paid -- lose. The business and a loser -- but I mean net. Sometimes stuff like that happens and conversely. If like me you've played very conservatively than you say you know in no way open house up for any thing -- I know at least sell -- a place to live. People make their own decisions sometimes can make a decision that goes back if that will happen to -- it that's a lot of people will pledge their house perks. Four start first start up some -- will be very successful and on number people who pledged their house to pick their kids' college yeah. That that's worked out for the people right now there will be people for whom -- -- Work or even get me -- and get somebody out of jail where else that's going a little far -- like they do that their property burns and sure sure there -- Which I've been -- to get to -- No like you can -- I would certainly feel like you would. -- Saddam and I'm just joking around -- -- series thing you know I think at some point. Housing changed from something you've lived in and something you know union -- will always have a place to rest their head. To speculative investments. And I don't think. You can blame homeownership for that he has gone into it with the wrong idea. That's right. That's right you people people make mistakes in deciding about now. And -- and every economic downturn people who bought -- a it will reasonably reasonably good idea. Get caught when an economy turned sour it hurts people hurt some people who want a whole record some of the water pretty recently they're the people tend to get hurt. And that is there's talk that there will be people who lose serve well. It's that's not a lot of fun for anybody involved but not it's not fun for the lender who. Didn't really want. How down to what and a real estate business out now after bank they -- -- -- fun being in the financial. So tell me about the home mortgage interest deduction in. What effect that as a on the -- on its last again analysts analysts think the economy issues that. On terms of it encouraging people to buy houses and whom exactly does it now. Well it helps. It helps a lot of middle income people. -- their first house it's really really away to be able to buy a house. And start to build equity. And that equity will be quick Q for the rest of your life. And it'll be used to. In retirement. It's it's often the most important investment people have wondered look -- -- -- look at retiring. And -- and the idea that this is they. Tax breaks for the rich is a little bit stay a little bit crazy. It's a tax benefit. For people. All the hallmark or pay off their mortgage that means that your. Old like me you paid it off you don't get to the production anymore but my kids out. And is also. It's particularly important for people in the middle of our. The problem the real middle class people between say 35060065000. Dollars a year. Oprah -- people how is their biggest investment it's most important thing at home. Edit edit its its -- if -- -- its domestic. And you and you -- -- -- to expand in whatever way it works for you. And the gifted at the second center and resident said before it was elected and but but first in terms of the last again and elastic if it is. In interest deduction were to go -- that means people aren't gonna. Be able. Buy a house they won't be able afforded or they won't be able to. -- they won't look at it as a Smart way of where they -- the house and not have been able to save some of their income and putting in this put in something as an investment company more houses will. -- sold if the if the interest deduction remains like it is or how many would effect it will have on the market if the -- Deduction goes away if you understand on trying to serve my own plot our way. There are legitimate content. I think I think and don't mind which you wouldn't get me out of jail. Well what the different products. That would seriously -- in terms of the effectively going away with less people buying houses are certainly moments Emma. Now you would you would you would not -- you would buyer would be less likely to buy a house and in particular. These are likely to postpone. By -- house. And that means in order for shorter period of time. And as the treasure our -- shorter period of time you don't build up the equity in the home you've got you spew out the earlier you were able to buy a home prudently. The better off you're likely to be over time. -- it's it's really important. Well and and the president said before he was elected he gave a speech on race and anything and went back to Jeremiah Wright nano eagerness. -- and a weeds here but he -- -- discrepancy of resource is in the in commonwealth between black and white families and he said the difference was. That white failings in the fifties and so forth were able buy homes and then. It may be a big homes but they were able pants then on to it to generations. They came up and and that generation bought a bigger house and were able to pass it along and he said black families may -- didn't have that opportunity and that's why today there is such a disparity of wealth and I think he made the case for the interest deduction -- now. Yes I think that -- that is an important part of the case for the interest deduction. You and it what it used to be true. That we had discrimination against our households. In the ability to buy in the ability to get a mortgage. That's illegal now it's got a good thing that it's illegal now. I don't think we should be making policy today on the basis of the problems. That we have been able to put behind -- In terms of this Saddam and I know we have to go to break here and screaming Yemen and control room but I got to ask you this. So what it's seven years old to 75 as they qualified they you get a thirty year mortgage and they can't be turned down because of their age. Well I think. You're a Lander is typically. Lending because. The -- to you ordered me because the wonder figures. Report comes to worst. And we. Default on the mortgage the house is worth enough to cover the losses that he's that he's gotten I'm not mortgage. Let them just under the plan the 75 year old guy paying off a thirty year old love thirty alone chances. -- well it would put it this business practice but the law prevents. No I'm not be a good business practice but. The house is still there if you don't like the house is still there and the house could be. Can go to your children will pay the mortgage. It can be sold by your Ayers. And you get and the lender gets in my back that's that's what I mean by saying that it's very lenders look to be sure. Bet a property. Is worth at least at least as much more than. More than Marilyn. John we gotta go I'm late braking is so much how we talked to you again thank you.