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Old 10-28-2018, 04:32 AM
 
765 posts, read 425,630 times
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Quote:
Originally Posted by Tencent View Post
In his other videos housing is a big focus. The key problem for about 25 years now has been exponentially rising housing costs relative to income. Hardly something to be considered minor considering housing is an essential expense to living in a civilized world and that homelessness in America is practically illegal...........
Why do we have a global problem of homelessness? The Bernanke put. ZIRP and QE, designed to preserve the housing bubble. We need to pop the housing bubble, and begin to address homelessness. 7 empty houses in America for every homeless person; the same is true globally. Low interest rates and hoarding have led us into hell.
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Old 10-28-2018, 04:36 AM
 
765 posts, read 425,630 times
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Quote:
Originally Posted by PCALMike View Post
..........Wall Street and the corporate elite own both political parties and the corporate media. As long as labor unions are destroyed and people send puppets to Congress who take millions in bribe money from the billionaire class, this is the inevitable result.
Great post Mike. Historically, Dems have been pro Big Government and anti-Big Business and pro-poor. The Repubs have been the opposite. Pro Big-Busienss; anti-Big Government, the party of the rich.
Something happened in the Reagan era. Revolution. NAFTA was Reagan's attempt to destroy the Democrats by undermining their funding source, the Big Unions. It worked. Unions went bust. Dems went bust. Clinton went on his knees to Wall Street and begged to be funded by Wall Street. Now Big Business owns both parties. Clinton and Obama talked about reform; but they both wanted to be "rich" and participate with the rich. Not much reform. In 2009, after Wall Street drove the globe over the cliff, a reformer would have raked them over the coals and made sure their ignoring risk would never be tolerated again. Obama looked the other way. He had Bernanke in charge, who pushed the gap between the 1% and the 99% to new undreamed-of levels. ZIRP and QE funneled money to the very rich.

Where are we now? In desperate need of deflation to drive prices down and begin de-leveraging. But Trump wants zirp too, for his re-election. Only Jerome Powell is standing guard on the bridge, a lonely effort to regain sanity.

Good Luck!
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Old 10-28-2018, 05:13 AM
 
65,830 posts, read 67,139,137 times
Reputation: 44094
Quote:
Originally Posted by C2BP View Post
Why do we have a global problem of homelessness? The Bernanke put. ZIRP and QE, designed to preserve the housing bubble. We need to pop the housing bubble, and begin to address homelessness. 7 empty houses in America for every homeless person; the same is true globally. Low interest rates and hoarding have led us into hell.
why ? well in this country alone most homeless have drug or alcohol related issues . the bulk became unemployable and unable to hold jobs . 38% have alcohol issues and 26% drugs .


" Substance abuse is often a cause of homelessness. Addictive disorders disrupt relationships with family and friends and often cause people to lose their jobs. For people who are already struggling to pay their bills, the onset or exacerbation of an addiction may cause them to lose their housing. A 2008 survey by the United States Conference of Mayors asked 25 cities for their top three causes of homelessness. Substance abuse was the single largest cause of homelessness for single adults (reported by 68% of cities). Substance abuse was also mentioned by 12% of cities as one of the top three causes of homelessness for families. According to Didenko and Pankratz (2007), two-thirds of homeless people report that drugs and/or alcohol were a major reason for their becoming homeless. "

but what the heck , it's the feds fault . why let facts ruin a good story .

http://www.nationalhomeless.org/fact.../addiction.pdf

Last edited by mathjak107; 10-28-2018 at 05:22 AM..
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Old 10-28-2018, 07:09 AM
 
11,774 posts, read 6,098,356 times
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^^^

The root cause is usually mental illness. The drug and alcohol problems come from that. People don’t choose to be mentally ill. It could have happened to you 30 years ago and you’d be out there with a shopping cart collecting cans with the rest of the bums. It’s really easy to say that people got to that place through bad choices but that’s not how it usually works.
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Old 10-28-2018, 07:14 AM
 
Location: Northern Michigan
956 posts, read 451,652 times
Reputation: 3830
Quote:
Originally Posted by Tencent View Post
In his other videos housing is a big focus. The key problem for about 25 years now has been exponentially rising housing costs relative to income. Hardly something to be considered minor considering housing is an essential expense to living in a civilized world and that homelessness in America is practically illegal. Housing should be always considered as 50% of the equation in any COL calculations. If it were, 2-3% would not be acceptable as a COLA, in fact it would be considered inhumane and a human rights violation to offer such a paltry increase.

And the same problem I have with the housing market is what I have with the stock market. Too much speculation, missteps by institutional investors who have their head up their a** and can't separate emotion from facts (creating a luxury real estate bubble waiting for mythical additional 1 million+ rich people to magically appear and buy over-valued over-inflated properties)

Most blame big banks for not being more responsible to have understood the negative impact of derivatives based on high risk products affiliated with subprime mortgages in the run up to the financial crisis. The reality is these realty companies on the front end are just as guilty if not more. Every player in the game from your Century 21s to your Platinum "million dollar agent" shops. They are all responsible for this BS.

Housing taking up 30% on average increasing to 50% of a person's income takes billions if not trillions of dollars out of the economy. This is another reason Retail died a premature death because Amazon recognized this and competed on cost value quick and fast. They are now catching up on the back end with having to increase wages and improve working conditions less they want to be perceived as Walmart V2.

Housing will continue to cause massive problems and re-shape the economy negatively if that market is not brought under control on the front end and get these non-bank lenders in check as well, both in the U.S. and China.

It should not cost $2000 to rent a studio in Nashville just because Goldman Sachs announced they are opening a satellite office down there. That is not how this is supposed to work.
A much clearer post. I don't think many people would argue with the fact that housing is kinda out of control. I am now retired, and now as we settle into it, we have to figure out how to maintain a lifestyle away from poverty. We can build our income by investing, which is our only way, other than going back to work- which can't happen. Now we hit your second point smack in the face. Wildebeest mentality in the stock market. That, at this point in our lives, is a great concern. We can ride out highs and lows, but investing in a widely changing market driven by poor decisions, is unsettling. If the market dives, and takes us 10 years to recover, will we be around when it does? Dead is dead, so that isn't the main concern. What if we get sick in the meantime, as our investments tank? That is a huge concern to us.

Quote:
Originally Posted by PCALMike View Post
They dont want to face the reality, because "their guy" is in the office now. If "the other guy" had been in office, they are likely to have agreed with you that the system has been broken for the regular worker in the last 40 years. Thats how the corporate media (owned by the top 0.1%) divide people up. Wall Street and the corporate elite own both political parties and the corporate media. As long as labor unions are destroyed and people send puppets to Congress who take millions in bribe money from the billionaire class, this is the inevitable result.
This defines the systemic rot that is partisan politics. Political party aside, finger-pointing and diversion tactics take away focus from true legislative issues, and kick true problems down the road in an effort to save political position and power. Calling out 'the other' party -take your pick- for partisan-based legislation (again, take you pick) is a common but ineffective and childish mistake; especially when such legislation effects so many people. That has always been the strong suit of centrist-oriented legislators, of which lately, there are only a few.

Are people going to learn lessons of the past? Doubt it. Most people aren't smart enough to know how to do unbiased research, and without critical thinking, many of those who did can't draw valid conclusions from what they found. It is up to the next generations to figure this out; our time is rapidly coming to a close.
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Old 10-28-2018, 07:45 AM
 
3,190 posts, read 1,285,085 times
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Quote:
Originally Posted by Tencent View Post
Nope

I'm not responding anymore. These guys just pull any half baked arguments out without thinking it through.

My point STILL hasn't been refuted.

Comparing 30K in 1989 with today
Thatís fine, but you still donít refute the basic premise that many people work part time. These statistics donít distinguish between part-time workers and full-time workers. https://www.bls.gov/cps/cpsaat08.htm

You donít distinguish between the fact that in 1980 interest rates reached 2-3x what they are now. They reached 18% in 1981, so a personís buying rate for big purchases like cars and mortgages was pretty limited. In 1989, it was still around 10%, so again, buying power was still more limited than what it is today.
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Old 10-28-2018, 08:15 AM
 
65,830 posts, read 67,139,137 times
Reputation: 44094
Quote:
Originally Posted by GeoffD View Post
^^^

The root cause is usually mental illness. The drug and alcohol problems come from that. People don’t choose to be mentally ill. It could have happened to you 30 years ago and you’d be out there with a shopping cart collecting cans with the rest of the bums. It’s really easy to say that people got to that place through bad choices but that’s not how it usually works.
no , it is the fed's fault , c2bp says so . ....

Last edited by mathjak107; 10-28-2018 at 08:57 AM..
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Old 10-28-2018, 08:51 AM
 
Location: North West Arkansas (zone 6b)
2,524 posts, read 1,761,669 times
Reputation: 3343
Quote:
Originally Posted by MichiganGreg View Post

Unless of course OP is saying that two earners are only earning 30K between them, or $7.45 an hour each.
If that is their, or the OPs idea of a crisis, there is a significant amount of knowledge that needs to be pounded into their heads. Nobody in their right mind would try to live on that, and they should move up to better paying careers- such as MacDonalds.
unfortunately, for some there is no chance. Minorities, drop outs, people with criminal histories or social awkwardness have a tough time finding jobs because nobody is willing to hire them. I'm sure there's even people who have all of those characteristics that are likely unemployed in a time when everybody has a help wanted sign.

It's even worse in densely populated areas where you have multiple people fighting for the same job. I have a cousin that is notoriously late for work and she got fired from her minimum wage cashiers job and it was easy for the store to find a replacement for her since they have a waiting list of people desperate for any minimum wage job.
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Old 10-28-2018, 10:07 AM
 
1,141 posts, read 271,035 times
Reputation: 1596
Quote:
Originally Posted by C2BP View Post
Why do we have a global problem of homelessness? The Bernanke put. ZIRP and QE, designed to preserve the housing bubble. We need to pop the housing bubble, and begin to address homelessness. 7 empty houses in America for every homeless person; the same is true globally. Low interest rates and hoarding have led us into hell.
Yes, also affecting commercial as well which is having yet another effect. Mom and Pop SMBs can't afford to setup shop = They can't afford to hire locally. Typically they will have more flexible employment requirements than Big Corp ABC. NYC has a ton of empty storefronts now. Rents arbitrarily increased based on illogical dreams of landlords - The REAL VALUE of the property has not increased significantly. They base exorbitant rents based on "higher taxes and fees from the city". OK - If NYC water, taxes, insurance etc. has risen beyond what you can make on rent from commercial tenants then sell the property. Leave it. See how fast the government adjusts rates and expectations. They'll have to make up the money by being more responsible. The citizens in the area will cry blight and don't let them get out by raising sales or income/payroll tax either. Hold the local politicians feet to the fire to balance the budget without fleecing small business and residents. Don't hold on to the property waiting for magical tenants that will pay 10x what you really need to stay profitable at a comfortable (not luxurious) margin.

Quote:
Originally Posted by RamenAddict View Post
You donít distinguish between the fact that in 1980 interest rates reached 2-3x what they are now. They reached 18% in 1981, so a personís buying rate for big purchases like cars and mortgages was pretty limited. In 1989, it was still around 10%, so again, buying power was still more limited than what it is today.
The workaround in 1981 was the fact that it was easier to:

1) Find work if you were persistent enough
2) Get promoted on capability if you were persistent enough and drove results

If you busted your a** and sacrificed you got past the challenges. Unfortunately due to technology and many other factors that is no longer the case.

This aligns with the fact that work productivity has increased exponentially relative to wages.

Quote:
Originally Posted by gunslinger256 View Post
unfortunately, for some there is no chance. Minorities, drop outs, people with criminal histories or social awkwardness have a tough time finding jobs because nobody is willing to hire them. I'm sure there's even people who have all of those characteristics that are likely unemployed in a time when everybody has a help wanted sign.

It's even worse in densely populated areas where you have multiple people fighting for the same job. I have a cousin that is notoriously late for work and she got fired from her minimum wage cashiers job and it was easy for the store to find a replacement for her since they have a waiting list of people desperate for any minimum wage job.
The interesting part is that while UE is undoubtedly always higher in "marginal" groups it's still higher than reported for your average White Male in his peak earning years (45-55) with 20 years experience.

Regarding your cousin - Yes there is somehow the false belief in MSNBC that retailers are clamoring for people. In my observation they are not short at all. Especially not in rural or suburban areas. Maybe just in urban areas where the cost of living is high and so people would rather just go back to school and live with family than work a job that barely makes a dent in expenses. (This being one key reason student loan debt continues to climb)
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Old 10-28-2018, 10:20 AM
 
5,012 posts, read 2,385,736 times
Reputation: 9239
Quote:
Originally Posted by Tencent View Post
It should not cost $2000 to rent a studio in Nashville just because Goldman Sachs announced they are opening a satellite office down there. That is not how this is supposed to work.
It doesn't.

https://www.zillow.com/nashville-tn/apartments/
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