Deduction that is sinking America

As most reader know I am not friend of the mortgage interest deduction in America.  If changes the costs of housing and skews them against apartments.  It also causes people to unreasonably assume you will get a huge deduction for the interest and get themselves into trouble.  Well I was glad to come across a posting discussing the mortgage deduction.  This was set off by an op-ed in the Boston Globe.

This is a very important discussion that needs to be had in America.  The mortgage deduction really needs to be rethought.  While I would like to completely remove all market skewing taxes I do not really think we will be able to do that.  So I think removing it above a certain areas with a phase out.  This seems to be a really good option, as long as we don't index to inflation, this will eventually work itself out which would be great.

Awesome Idea

So this is awesome, Planet Money has bought a piece of an MBS for $1000 (originally it sold for $75000) and they are tracking the progress of the MBS.  This is so neat.  For $1000 they have quite a story for their blog.  The tracking widget is here.

Man I wish I had thought of it, it would have been a great hook for a blog and since I am not great at picking stocks I may have made more money than I am currently making in the market.

Also they have a map of where the mortgages are located.  So neat.  Such a great idea, wish I had thought of it.

Additionally what is interesting is that the New Jersey Carpenter's Vacation Fund is suing the company that made the MBS (Royal Bank of Scotland).  It keeps getting more interesting.