U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 05-10-2018, 04:27 PM
 
5,607 posts, read 4,163,577 times
Reputation: 12348

Advertisements

Quote:
Originally Posted by pittsflyer View Post
How is the upcoming trend of young people not having kids and living out of their cars going to effect the economy. I am reading more and more of this. All kinds of youtube channels of how to black out your car windows and where to park without getting caught etc.

I am also seeing more and more people doing "van living". i had a co-worker at a major oil company years ago who made a bunch of money and then quit to go live in a van. Minimalism and van living seems to be catching on, what will that look like for the economy?
For the last few years, largest group buying homes are the Millennials. And polls indicate 80% of them believe buying a home is a good idea. Things are not as dire as reported.
Reply With Quote Quick reply to this message

 
Old 05-10-2018, 04:31 PM
 
5,607 posts, read 4,163,577 times
Reputation: 12348
Quote:
Originally Posted by hitpausebutton2 View Post
Not sure how it leads to poor economic growth? you cant just make up money out of thin air, or turn a $10 into $100. Dont you want the the CPI to be going down to make things cheaper and more desirable to afford for every body, not just selective groups? Only a moron would pay over asking price or value of the home. Dont care how bad of a house I want, not going to over pay thats for damn sure. But the seller is happy and im sure they wont be over paying their next home with the funds.
No, I donít want the CPI going down. Because I have an understanding of economics and know that hurts the economy and hence people who make up the economy.

Hereís an article for your enlightenment:

https://www.thebalance.com/what-is-d...-s-bad-3306169
Reply With Quote Quick reply to this message
 
Old 05-10-2018, 04:37 PM
 
Location: Copenhagen, Denmark
9,871 posts, read 8,013,614 times
Reputation: 11224
Quote:
Originally Posted by hitpausebutton2 View Post
If your sitting on alot of money in the bank or couch, are you the partial reason for inflation?
The bank counts these as deposits. It's good for the banks. It has no effect on inflation. It does allow the bank to invest more.
Reply With Quote Quick reply to this message
 
Old 05-10-2018, 04:37 PM
 
8,297 posts, read 3,460,242 times
Reputation: 1588
Quote:
Originally Posted by hitpausebutton2 View Post
Huge part, but over value part of it. Our economy shouldnt be using homes as crutch
What would be better? Healthcare?
Reply With Quote Quick reply to this message
 
Old 05-10-2018, 04:39 PM
 
6,086 posts, read 2,503,107 times
Reputation: 3878
Quote:
Originally Posted by UNC4Me View Post
For the last few years, largest group buying homes are the Millennials. And polls indicate 80% of them believe buying a home is a good idea. Things are not as dire as reported.
Believing that buying a home is a good idea is different than taking on a mortgage. Also are the millenials living at home and paying cash for the homes or taking on mortgages?

I also think buying a home is a good move but taking out a mortgage is not. If someone can live out of a van until they can buy cash that is the way to go.

However, what kind of an effect would this have on the economy.
Reply With Quote Quick reply to this message
 
Old 05-10-2018, 04:40 PM
 
5,607 posts, read 4,163,577 times
Reputation: 12348
Quote:
Originally Posted by hitpausebutton2 View Post
Huge part, but over value part of it. Our economy shouldnt be using homes as crutch
A benchmark of homes being overvalued is a glut of houses on the market. A glut means people canít or wonít buy at the listed prices. But thatís not what we have. We have a shortage of homes on the market causing competition for homes. People have money to buy, want to buy and that means homes are not over valued.

The benchmark of homes being overvalued is not whether or not every single person can afford one. Never has been, never will be. Low income folks have never been able to buy homes in large numbers. Not in the past and not now.
Reply With Quote Quick reply to this message
 
Old 05-10-2018, 04:41 PM
 
8,297 posts, read 3,460,242 times
Reputation: 1588
Quote:
Originally Posted by Frihed89 View Post
The bank counts these as deposits. It's good for the banks. It has no effect on inflation. It does allow the bank to invest more.
Cash under your couch is not money in the bank of course.

But as I mentioned above, the banks don't need our money to make loans. Loans create deposits.

http://www.theguardian.com/commentis...land-austerity
Reply With Quote Quick reply to this message
 
Old 05-10-2018, 04:43 PM
 
5,607 posts, read 4,163,577 times
Reputation: 12348
Quote:
Originally Posted by pittsflyer View Post
Believing that buying a home is a good idea is different than taking on a mortgage. Also are the millenials living at home and paying cash for the homes or taking on mortgages?

I also think buying a home is a good move but taking out a mortgage is not. If someone can live out of a van until they can buy cash that is the way to go.

However, what kind of an effect would this have on the economy.
Theyíre taking on mortgages. 35% of mortgage borrowers the last few years have been Millennials. Boomers are the next biggest group at 30%. For qualified buyers, rates are historically low and attractive to buyers. I canít see many living in a van until they can buy. In a high COL area, theyíd be living in it for a long, long time.
Reply With Quote Quick reply to this message
 
Old 05-10-2018, 04:47 PM
 
8,297 posts, read 3,460,242 times
Reputation: 1588
Quote:
Originally Posted by pittsflyer View Post
Believing that buying a home is a good idea is different than taking on a mortgage. Also are the millenials living at home and paying cash for the homes or taking on mortgages?

I also think buying a home is a good move but taking out a mortgage is not. If someone can live out of a van until they can buy cash that is the way to go.

However, what kind of an effect would this have on the economy.
If the price and mortgage rate are sensibly low and you qualify, I would go for it. Home ownership is a great part of US life. It can provide huge benefits to you and your families lives, local economy and community.

There might some better investment that you can make with the money that you 'saved' rather than putting all those eggs in one basket on a cash home purchase.
Reply With Quote Quick reply to this message
 
Old 05-10-2018, 04:52 PM
 
2,360 posts, read 1,030,857 times
Reputation: 2071
Quote:
Originally Posted by UNC4Me View Post
No, I donít want the CPI going down. Because I have an understanding of economics and know that hurts the economy and hence people who make up the economy.

Hereís an article for your enlightenment:

https://www.thebalance.com/what-is-d...-s-bad-3306169
Ty.

But have some arguments over its content
Quote:
Deflation is when asset and consumer prices fall over time. This may seem like a great thing for shoppers, except that the cause of widespread deflation is a long-term drop in demand. It means that a recession is probably underway. That brings job losses, declining wages and a big hit to your stock portfolio. As a recession worsens, so does deflation. Businesses lower prices in a desperate attempt to get people to buy their products.

How does it cause long term drop in demand, when its cheap to get. Cheaper the item is, then more people would buy it in fear of rising prices. Say a 5$ candy bar is now $3 bucks, Then i would buy more of it, thus increasing the demand. Once the demand is high enough, then it would go back to $5 if the theory of supply and demand is the factor. ?

Quote:
Deflation slows economic growth. As prices fall, people put off purchases. They hope they can get a better deal later. You've probably experienced this yourself when thinking about getting a new cell phone, iPad, or TV. You might wait until next year to get this year's model for less.
This puts pressure on manufacturers to constantly lower prices and come up with new products
Again, when prices fall, im stocking up and buying things that i wanted since prices were high. If tv was 600 and now its 300, then im buying it. But dont they do this anyways when a newer model hits the market, they lower the price of the older one?
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top