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So you guys want collapse of the current system and essentially anarchy? and then build from after the fire?
The median household can afford a home, and there are stats everywhere that shows the current conditions. The median home price has already reached "historical" affordability levels in many places. In the coming months they will be going bellow "historical" levels. Supposively affordability is at 62.4%. Which means 62.4% of median income earners can afford a home.
Historical Home ownership rate:
2000 1990 1980 1970 1960 1950 1940 1930 1920 1910 1900
United States 66.2% 64.2% 64.4% 62.9% 61.9% 55.0% 43.6% 47.8% 45.6% 45.9% 46.5% Historical Census of Housing Tables - Homeownership
In terms of affordability, historically, since 1950s roughly 64% of people own homes.
So, if you earn the median income, you should be able to afford a median home.
-chuck22b
The problem is inflation. Do you know much it costs to take your kid to the daycare? I don't have any kids and I know the answer to this. It's approx. $200 per week per child. If you have 2 kids thats $1600 per month. How much does your wife make? Is it worth it for her to work?
Wages are also tanking right now during the recession and a lot of things have gone up in price due to the increase in fuel costs. Now that fuel costs have come down the prices did not come down with them.
Another thing to point out is people have lost everything in their savings accounts and are losing jobs left and right. Homes are not very affordable right now.
Bond traders should be some of the maddest people out there.They know once all the deleveraging is done,and inflation comes back..LOOK OUT! The amount of money the government is going to need to subsidize the debt will drawf the needs of the mortgage markets.How does this affect you? While you will probably be able to get a good rate with the proper bonafides for the next 12 months.When the world gags on treasuries being crammed down their throats from bailouts,they'll cry "no mas".Then bond prices will go down,yields will go through the roof,all those people who thought they were smart having their 401(k)'s in Bond Funds will suffer another meltdown,and mortgages will be in the 10% + range again,dealing another downleg to the housing market.Let financial Darwinism work,foreclose,evict,go out of business and lets all move on!!!!
Bond traders should be some of the maddest people out there.They know once all the deleveraging is done,and inflation comes back..LOOK OUT! The amount of money the government is going to need to subsidize the debt will drawf the needs of the mortgage markets.How does this affect you? While you will probably be able to get a good rate with the proper bonafides for the next 12 months.When the world gags on treasuries being crammed down their throats from bailouts,they'll cry "no mas".Then bond prices will go down,yields will go through the roof,all those people who thought they were smart having their 401(k)'s in Bond Funds will suffer another meltdown,and mortgages will be in the 10% + range again,dealing another downleg to the housing market.Let financial Darwinism work,foreclose,evict,go out of business and lets all move on!!!!
You are so correct. Let be say that again - YOU ARE SO DAMN CORRECT!!!
People - if you don't do anything else you should save what this person has told you. He is dead ass right!
The problem is inflation. Do you know much it costs to take your kid to the daycare? I don't have any kids and I know the answer to this. It's approx. $200 per week per child. If you have 2 kids thats $1600 per month. How much does your wife make? Is it worth it for her to work?
Wages are also tanking right now during the recession and a lot of things have gone up in price due to the increase in fuel costs. Now that fuel costs have come down the prices did not come down with them.
Another thing to point out is people have lost everything in their savings accounts and are losing jobs left and right. Homes are not very affordable right now.
From what I can tell, the suffering of the middle class is because of the increasing gap between the median earner and the top 10 percentile.
Check out how much the GINI index has increased in the US in the last 10-15 years.
How did this occur? Gwynedd1, I think will tell you it's because of the banking system and the perpetual debt required to service additional debt. I think it's mostly that, but also it rests on people, outsourcing, globalization, business practices, and government policies.
Government policies I think would be the quickest way to deal with it.
From what I can tell, the suffering of the middle class is because of the increasing gap between the median earner and the top 10 percentile.
Check out how much the GINI index has increased in the US in the last 10-15 years.
How did this occur? Gwynedd1, I think will tell you it's because of the banking system and the perpetual debt required to service additional debt. I think it's mostly that, but also it rests on people, outsourcing, globalization, business practices, and government policies.
Government policies I think would be the quickest way to deal with it.
-chuck22b
Hi chuck22b,
Yes that would be correct. I believe globalization problems are a side effect of the financial system. The rest of the world gobbled up our currency and that kept taking dollars out of circulation from the local economy which magnified the wealth distribution to the Anglo-American financial axis of Wall Street and the City. They could creat huge amounts of money which would generate interest but that new money would be sucked out of the country with no ill effects. They grew wealthy and inflation was low.
The effects of predatory debt largely impacted the third world but kept a lot of buying power in the first world. This created wage imbalances that made 3rd world labor too cheap and 1st world too expensive. The export economies in those nations were complicit in this process.
Its really a lot like paying a slave master a premium in a foreign country to make goods to sell in the host country. The slave master benefits the, importer benefits, and the consumer of the host country benefits. Only this is done with financial instuments.
They keep the buying power of a currency low by exchanging currency for treasuries of the host country. These artificially weak currencies keep real wages low on international markets which benefits the export employer who then sells the output to the host country. The wealthy classes in the first world have less need of labor when they have slaves abroad. Thats the imbalance.
While I agree with some of what he's saying, I think Santelli is enrolled in a Jim Cramer home-study course on how a master of the obvious can have a successful career in broadcasting simply by shouting at his viewers.
Investors HATE Obama!!! This is NOT GOOD for the stock market. And if it's not for the stock market it's NOT GOOD for businesses... And if it's NOT GOOD for businesses it's NOT GOOD for employees!!! Tax increases? STUPID!!!
Investors HATE Obama!!! This is NOT GOOD for the stock market. And if it's not for the stock market it's NOT GOOD for businesses... And if it's NOT GOOD for businesses it's NOT GOOD for employees!!! Tax increases? STUPID!!!
Agreed. I'm a hard core republican but I don't hate Obama and I do wish him the best but he has got to stop with the tax increase and the redistribution of wealth talk.
Raising taxes should not even be talked about when the country is going through a DEEP recession.
Anyone have his thoughts on the corporate bailouts?
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