It's all the babyboomers fault! (employment, suspect, cost, dollar)

[baystater]

Originally Posted by RedNC

That is something that is missing today. If that is something you believe in then why do so many gen(?) not believe in it?


Houses have always been expensive. People have always had to go into debt to afford a home. Start out small, condo, town home, fixer upper. Your parents didn’t start out at the top neither can you.




Baystater: They were not 4 to 5 or in California's case 9 times income in alot of places. I was more like 2 time income when my father got his first house. I expensive but doable.





You want some kind of guarantee before you are going to put in an effort. This is exactly why there is a problem. Your generation wants their reword before the work.
I can sympathize with wanting to know ahead of time that there is some kind of future outcome, but I believe it’s the gen(?) that have scared the businesses away not the boomers.
This is a two edge sward. The US needs a trained work force. But if those being trained see the existing work force being laid off they feel “why should I bother if there are no jobs waiting when I finish training?” I don’t have the answer.




baystater: Not looking for a guarantee. I'll just telling why my Gen don't buy the climbing the ladder deal wholeheartedly. If the Corps show some loyalty we will in return.

Probably can’t blame all gen(?)’s for that, but why did they have to make that the one thing they excelled at?





Baystater: That's just B.S.


Do you actually think that a recession will effect everyone except you? Do you even know that a recession is like? I think you need to do some research on what a recession is and who is effected, because it isn’t like re-booting your game-boy and starting over.
Lets say you can afford a $50k house now, so you want a $300k house to be reduced to what you can afford.
In order for that to happen the entire economy would have to have a catastrophic collapse. That would mean mass unemployment and I mean NO jobs. Once that happened you would also be unemployed. In the recession scenario if you can’t afford the house now, you definitely wouldn’t be able to afford it during a recession.





Baystater: Oh a recession will effect me definitely. But I'm will to deal with it. As for seeing one. Yep I was alive though young during the early Reagan years. My father had a hard time getting hours at work. But we survived and that experience taught me money didn't grow on trees and that debt which my father had to going for the short term was not a good thing. Also during the early 90's the economy wasn't so hot either. In fact that economical experience jaded the older Xer's hard to get a job when there we're that many. As for understand a recession and what it means to the U.S. Got a B.S. in Finance Kid. I get it and we need it. As for your stark picture of the unemployment rate. really look at history. OK was the great depression bad? Sure. But was everyone unemployed. No. the rate of unemployment was about 25% which is high. But not everyone is out of a job. You just had to be mindful how lucky you were to have a job. Also the dust-bowl almost happing at the same time so you can add that to compound the problem of the depression. Granted I very much doubt we will get to depression levels the world community probably won't allow it. Remember now-a-day we go down it ain't just Europe that goes down with us. It the whole world baby. Got to love globalization. On top of that I'm personally will do what every job is necessary to help me to survive the bad times.





You know I wish I had bought all the homes on my block back when they were new. I could have bought 10 for what I paid for mine, the only problem was when they were new I couldn’t have qualified for one much less 10.
Bottom line, houses have never been affordable, you have to “sacrifice” to get one. That means “do with out” some things. That is something that gen(?) have never had to deal with. And isn’t that sooooooo unfare.

Baystater: To buy a house today I'd have to give up everything. Not just do without the extras.

P.S looks like my answers got mixed in with Quote.

[baystater]

Originally Posted by TnHilltopper

I think this is one of the aspects of American culture that is sorely lacking. Idealism and a view of the world that goes beyond that which lay at our feet. For whatever reason, we now look at the future as being the next fiscal quarter instead of the next decade or generation.

Actually we need a goal. I think I have one for Gens. We need a push as a society for a clean alternative energy program. It needs to take on proportions of the space race to be successful though. Not just creating hybrid cars. Let see is we have the gumption. And let's see if the next Pres. got the foresight and "Idealism" Kennedy did.

[RedNC]

Originally Posted by baystater

Baystater: To buy a house today I'd have to give up everything. Not just do without the extras.

P.S looks like my answers got mixed in with Quote.

You say you have a degree in finance. You must not have learned much if you think a recession and 25% unemployment is a good thing. What makes you think you would be one of the 75% that was employed?

Yes you have to sacrifice that's how it works. With time you get pay increases, learn how to manage your money that's the way people have been doing it. Your generation wants instant gratification, buying a home doesn't work that way. Unless mom and dad give you the money you have to sacrifice to get it.

[baystater]

Originally Posted by RedNC

You say you have a degree in finance. You must not have learned much if you think a recession and 25% unemployment is a good thing. What makes you think you would be one of the 75% that was employed?

Yes you have to sacrifice that's how it works. With time you get pay increases, learn how to manage your money that's the way people have been doing it. Your generation wants instant gratification, buying a home doesn't work that way. Unless mom and dad give you the money you have to sacrifice to get it.

I learned plenty in school and also in life. And As I said I think we need it a recession to clear out this high debt society and get price down. Anyways I didn't say that 25% was a good thing. I basically meant that we would survive if it happened if it did. And I would work any job to make it unlike your assumption that my gen so lazy and entitled that I'd rather starve then work a menial job. Make sure you read fully before you answer.
And again to repeat if you didn't get it the first time. to get a house today I would, my gen would have to sacrifice everything to get a house and basically go broke. 4 to 5 times income is just too much.

[TnHilltopper]

Originally Posted by baystater

Actually we need a goal. I think I have one for Gens. We need a push as a society for a clean alternative energy program. It needs to take on proportions of the space race to be successful though. Not just creating hybrid cars. Let see is we have the gumption. And let's see if the next Pres. got the foresight and "Idealism" Kennedy did.

I do agree with this idea, as I think it would go a long way in promoting more American solidarity and help to heal some of the growing political divide in the country.

A huge goal such as 100% energy independence would go a long long way in so many aspects. To spur new technologies, the obvious improvement to national security, so on and so forth. As one NASA official recently said, "We no long ask can we do it, but can we afford to do it" and this change in philosophy is certainly one of the things that has caused us to lose our idealism.

[baystater]

Originally Posted by RedNC

You say you have a degree in finance. You must not have learned much if you think a recession and 25% unemployment is a good thing. What makes you think you would be one of the 75% that was employed?

Yes you have to sacrifice that's how it works. With time you get pay increases, learn how to manage your money that's the way people have been doing it. Your generation wants instant gratification, buying a home doesn't work that way. Unless mom and dad give you the money you have to sacrifice to get it.

OK just look at my answer from earlier and it alright. I need to do better though. I guess that what happens when you miss your morning coffee and have to rush off to work. OK let try again.

REDNC. Sir have I questioned you personal intelligence? Insulting me is not going to help change any of my perceptions of your Gen. In fact it help solidifies them.

As for the 25% unemployment rate and the recession. Those are two different things.

The great depression caused 25% and yeah that was bad. but it was not the end of the world and the nation survived. And I believe if did happen again we would again persevere and probably come out a better nation for it. Granted I believe that I said that a depression is not very likely. As for me personal and my employment during a depression. Sir there is no gaurentee that I'd have one. But I believe I said earlier that I was willing to work any job. And that helps in dire times. I personally have worked both manual and white collar jobs and liked both. So you can back off on the sense of entitlement stuff your preaching about. Your talking to a New Englander Here. There are none that work harder than us.


But a recession maybe in the works as a write this. And honestly I wouldn't mind it. like I have been saying through out thread that we need prices to come down to make life more affordable for the younger Gens. We as a Gen are not just going into debt but going into extremely heavy debts that we may never be able to get out of. And I talking about debts for College, simple cars, small housing, or condos, apartments' Not stupid stuff like flat screen TVs and the like. the only thing I believe that is in reason is food.

Now on to your housing comment. Houses on average are costing Americans 4 to 5 times income. In some places more. That's just to much. Now we are willing to sacrifice to get a home with in reason. But for the past 5 years thing have become completely unreasonable and I place a lot of the blame on the greed of babyboomers and there belief that homes are now an Investment tool and not a place to live. So give the hardwork and sacrificing bit a break. We're doing both believe or not and it ain't get us very far.

[GregW]

I am a baby-boomer and I seem to have missed out on the speculative housing bubble of the last couple of decades. My house has only doubled in price over the last twenty years. I (poor me) cannot afford to buy a second (!) home so I can snowbird. Boo Hoo!

I think that housing has been just another low margin equity racket and the bottom is about to fall out as the bubble bursts. Well, all bubbles eventually burst. I just hope the government does not bail out the REITs and just lets the market take them down. BTW – When my financial advisor suggested investing in real estate bonds a couple of years ago I politely declined. Just seemed way too risky.

While this bubble bursts there will be a lot of foreclosures and even bank failures. I expect some people with actual equity will be allowed to keep the houses because the bank will have so many unsellable houses that they will just give up. The people that have been speculation using no down payment loans will loose the minimal equity they have. Others will loose more.

My real worry is that the collapse of this speculative bubble along with shipping our industrial capacity and employment to China will really hammer our economy. That will be rough but with proper actions we can survive it. I suggest getting any capital you might have accumulated into some other currency because the dollar is about to get inflated beyond any value whatsoever.

[RedNC]

Houses have always been an investment. House appreciation is a good thing.
My first condo cost me 3 times my salary. I barely made it the first two years, but I stuck it out, SACRAFICED, and after 7 years sold for a PROFIT.
My first house cost 4 times my salary, same scenario as above and I sold it for a PROFIT.

All that time I could have paid less for rent initially, but over time the rent would have caught up with the condo or house payment and I would have lost out on the equity or “profit”.

If you want to continue to cry and complain “its not fair”, “I need everyone to drop their house prices so I can afford one too” go ahead, the smart ones will take advantage of what’s available especially now that prices have come down.

[TnHilltopper]

Well unrelated to housing issues, I think Baystater's notion of going through a severe economic downturn would be a humbling experience for a generation that hasn't really had to sacrifice in the way that depression era people did. I don't want to go through tough times anymore than the next person but I think that it is a valid point. The only sacrifice my generation has had to make was to the choice to order out or dine in.

[Rita Mordio]

Originally Posted by RedNC

Houses have always been an investment. House appreciation is a good thing.
My first condo cost me 3 times my salary. I barely made it the first two years, but I stuck it out, SACRAFICED, and after 7 years sold for a PROFIT.
My first house cost 4 times my salary, same scenario as above and I sold it for a PROFIT.

All that time I could have paid less for rent initially, but over time the rent would have caught up with the condo or house payment and I would have lost out on the equity or “profit”.

If you want to continue to cry and complain “its not fair”, “I need everyone to drop their house prices so I can afford one too” go ahead, the smart ones will take advantage of what’s available especially now that prices have come down.

Around where I live, you are lucky to find a house that's not in a high-crime area for under 200K. Now, my Aunt is selling a 4 bedroom, .5 acre of land, home for 90k. Around here, that's in the 400's.

Also, because of the MASS amounts of military, it's very difficult for a young adult to get financed for a home without being in the military. Not unless you can afford to put 10% down on the loan. 10% of 200K? I don't know of many young adults that can fork up $20,000 or more, in cash or check form.

I did estimates on my income and interest rates. I can afford a $200K home... the only problem I'd have is coming up with the 10% down. So, I am currently renting for pretty cheap and setting aside that extra money so that in a few years, I can get a loan.

Also, the other problem with being a young adult in this is credit and work history. I started working on my credit the day I turned 18. My mother assisted me in that she bought a vehicle with me as co-signer. I'm not responsible for the vehicle in any way... but every month when she makes her payment, my credit gets a little boost. Even so, I was told I had in-sufficient credit history (2 years is not enough to buy a house). The last problem is work history. How many 20-somethings have been at a single job for more than a year?

I was told by the BANK (Bank of America) that they don't usually give home loans to people under 25 because the average person under 25 changes jobs doesn't stay at one job for more than like 14 months. This is including the Military boys and girls. Therefore, it's a gamble to give a home loan to somebody young. It's like auto insurance.

Did you know that a 40 year old and an 18 year old can get their license at the same and (with the same car in mind) the 18 year old's insurance will be more than double that of the 40 year old? Not all teenagers are reckless and not all "older" people drive good.

Another thing that is iffy about the Baby Boomers.. is how some of them baby their children. I know of a mother who has put herself into MASSIVE debt *somehow unbeknownst of her youngest who used to be an acquaintance of mine..* to put all 3 children in college.. and even took on a fourth mortgage (on her house...) to buy a house for her oldest. She raises her children to take ONLY jobs that will pay them more than 50K/year. In fact, she has her youngest believing that she will be head-hunted for more than 60K/year straight out of college with her Bachelor's.

Now, this girl has never had a tad bit of responsibility put on her. Her mother cleans her room for her, pays for her car, pays for her gas, pays for EVERYTHING. She started working at Dairy Queen when she was 16, but her mother convinced her to quit because "it did not pay for what she was worth in the job world." Yet both "KNOW" that as soon as she's put in the job world and paid properly, she'll be fine. And yet, the both of them have directly stated that my life was going to end up in failure because I wanted to get from under my parents' wings.

My father, too, was a late baby boomer. However, he isn't the typical "buy now, pay later" kind of person. He showed me that the only reason to "buy now, pay later" was to better my credit score, buying a car of my own, or to buy a house. He taught me the value of the dollar bill. He also taught me the value of the dollar bill to society. Though, I never understood why more money means that you are a better person..

Health insurance is probably going to take another spike here soon. As the baby boomers get older and older, they are going to require more and more medical attention for falls, trips, breaks, heart problems, and everything else that goes wrong when you get old. Because of the MASS amounts of baby boomers, good 'ole Medicare is going to be broke for the next generation.

Same with Social Security. There's going to be nothing left for the next generation of retirees.

Suggestion to all - Don't get sick or need medical attention and save all the money you can for retirement.