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The new issue of 'Consumer Reports' had an article on whether people were saving enough for retirement. It mentioned that while millennials were actually somewhat better at saving for retirement than Xers were, the median net worth in that group is only about $12K. Which makes me speculate that even the ones who seem to be on track with home ownership and retirement savings might be too leveraged/have too high of a student loan burden that they need to be concerned about what they'd do if they had a six month period of unemployment.
An ours similarly, along with their friends and others that we know and work with. I don't know who these millennial are that are in such dire financial condition, we just don't see it.
Yeah not my social circle either lol. I would be an older Millennial but of my 3 friends, there’s a police officer ($100,000+ with OT), radiologist ($565,000/year), and CFO of a biotech company (unknown). They do alright.
Some of you are pretty oblivious about the difference between data and your personal anecdotes.
You might as well be a farmer sitting in Iowa saying traffic congestion isn’t a problem on the 405 because hey I’m looking around and the roads are free and clear.
Some of you are pretty oblivious about the difference between data and your personal anecdotes.
You might as well be a farmer sitting in Iowa saying traffic congestion isn’t a problem on the 405 because hey I’m looking around and the roads are free and clear.
Same can be said about "studies". Follow the money and you'll find their agenda. You know what they say about statistics and data...
80’s generation is 34% behind other generations in wealth building by the same age. “Income and homeowner trends unexceptional” “the challenge faced by 80s families should not be underestimated” “note that the 80s cohort was unusual in that in fell even further behind in the 2010 to 2016 wealth benchmarks”
Those refinances also created tons of equity all the way down. Millennials won't see their equity explode in such a similar fashion unless rates manage to go from. 4% to -9%. I know boomers who bought property in Boston for $50k in the 1970s, now it's a money printing machine for $6k/mo in rent, $1.1mm easily if they sell.
You can clearly see recovery in the 70s (from lower unemployment rates) was much quicker both times.
>Car loans
It is a lot easier to put 10% down when the values aren't nearly as inflated due to low interest rates. In a low rate environment, which naturally inflates values, it's harder to require the same down payment as a higher rate environment.
The rest of your rants about technology on campus as a student, I'm not sure what that has to do with economics.
EDIT: And in an earlier post, you very incorrectly claimed only a "handful" of housing markets were affected by the last recession, which is also not true. The national aggregate fell significantly, especially with the recovery taking over a decade, that's a lot of value lost to inflation: https://fred.stlouisfed.org/series/CSUSHPINSA
It must be fun for M to look at high nominal mortgage rates in 1980...without accounting for their real interest rate paid with the exceptionally high inflation.
Federal funds rate was ??? in 1980...inflation was ???
Is the spread much different than today in real terms?
But I’m sure they suffered pretty mightily between 1983 and 2001, the greatest financial boom in history. Rather than hear about calculators and technology, I’d like to hear of the tale about one of those mythical pensions...or maybe you could explain to me the explosive cost of education over those following 2 decades.
The old 3 legged stool isn’t looking good for future generations. Pension gone. Social security pushing higher and higher age wise, and our last leg pushing the chips into the middle of the table under the watchful eye of an insane fed and many predictions of lower returns going forward.
Last edited by Thatsright19; 09-02-2019 at 11:02 AM..
It must be fun for M to look at high nominal mortgage rates in 1980...without accounting for their real interest rate paid with the exceptionally high inflation.
Federal funds rate was ??? in 1980...inflation was ???
Is the spread much different than today in real terms?
But I’m sure they suffered pretty mightily between 1983 and 2001, the greatest financial boom in history. Rather than hear about calculators and technology, I’d like to hear of the tale about one of those mythical pensions...or maybe you could explain to me the explosive cost of education over those following 2 decades.
The old 3 legged stool isn’t looking good for future generations. Pension gone. Social security pushing higher and higher age wise, and our last leg pushing the chips into the middle of the table under the watchful eye of an insane fed and many predictions of lower returns going forward.
Exactly. No one said prior generations did not have challenges, they certainly did. I hate the "woe is me" millennials who complain and make poor choices more than anyone else. But there are plenty of real word indicators and statistics to show the chips stacked economically against millennials higher than previous generations.
A lot of this is the result of previous generations taking advantage of policies, then "pulling up the ladder" from others, while changing policies to continue to benefit them. IMO, the first time homebuyer credit should have remained, while the mortgage interest deduction should have been repealed altogether. We need smart policies that help people get started, not those that reward people who already have. I'm not saying to take from the haves (I am more in that camp myself), but rather to do away with policies that help the wealthy get wealthier.
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