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US Homeownership Rate Drops To 1983 Levels: Here's Why
The last time US homeownership declined down to 64.4% (which the Census Bureau just reported is what US homeownership declined to from 64.7% in Q2), was back in the fourth quarter of 1983.
It goes without saying that this is about the bearishest news possible for those few who still believe in the American homewonership dream.
Of course, those who have been following real-time rental market trends would be all too aware there is no rebound coming to the homeownership rate. The reason is simple: increasingly fewer can afford to buy, instead having no choice but to rent, which in turn has pushed the median asking rent to record highs. In fact in the past two quarters, the asking rent was just $10 shy of its time highs at $756 per month.
But capital allocation preferences aside, while explaining the disparity between rental and homeownership in a world where Renting is the new American Dream, what the charts above don't explain is why there is no incremental demand from all those millions of young Americans who enter the population and, eventually, the workforce. At least on paper.
Earlier today, Bank of America in its Chart of the Day earlier was confused by precisely this:
Population growth of 25-34 year olds outpacing growth in the housing stock: The primary driver of household formation is population growth among 25 to 34 year olds. There is notable divergence with the growth in this age group and the growth in the housing stock. This suggests greater doubling up of households as a result of the recession and weak recovery. Unless doubling up turns into tripling up, household formation should recover over time, creating a need for greater building. Given tight credit conditions, this will tend to drive apartment construction more than single family construction. Either way, the housing stock is lagging well behind demographic fundamentals.
Yes, in theory, in a normal world, demand should increase over time. But the world is anything but normal.
Enter: the Millennials.
For the benefit of a very confused Bank of America, and everyone else who missed out weeked chart porn on the financial state of the Millennial, here are some of the key charts which explain why owning a home in the US has become a mirage for an entire generation of Americans. Incidentally, the largest generation in US history.
This is what is happening:
And this is why:
Bottom line: they may be homeless, but Millennials sure love their smartphones...
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"US Homeownership Rate Drops To 1983 Levels: Here's Why"
Banksters own all the houses.
Welcome to the rentier society...
They own all the houses because the FED only knows how to inflate asset bubbles as their faulty economic paradigm decays and dies. Once average price for a home gets close to what the average income can afford, then the chart will reverse. For that to happen though, banks will need to go bust.
The other side of the equation, which isn't illustrated above, is the HUGE number of 'investors' that bought a second property in 2002-2006, thinking that a never ending stream of suckers would come clammering once a for sale sign went up on their 'investment', offering 50% more than what they bought it for only months prior. Now those investors are stuck. Won't sell at a loss, so forced to rent them out.
The system is so one sided toward financing, it has to implode eventually.
Central Bank Debt Based Monetary System = Inflation
Ask any USPS delivery person, 4-6 last names at a single residence is very common for the last several years. Mixture of divorces and communal living. Good morning 'Merica.
im 40 has my whole life been a lie?
"Pink Houses" is a song written and sung by John Mellencamp. It was released on the 1983 album Uh-Huh on Riva Records.
Oh, but ain't that America
For you and me
Ain't that America
Something to see, baby
Ain't that America
Home of the free, yeah
Little pink houses
For you and me
Oooh, yeah
For you and me
Bernanke's legacy of stability and affordability
There has never been a better time to buy-on-time a highly-profitable stick, staple, and paperboard construction McBungalow with hollow-core doors and minimal insulation on a postage-stamp lot with draconian HOA bylaws and rising property taxes just 35 miles and three toll booths from a part-time job at Wal-Mart.
Fannie Mae used to bill itself as"The American Dream Machine".
That the gubmint entered the housing sector via the mortgage markets, producing dislocations, lack of accountability, fraud, is The American Nightmare.
Now these snakes are in healthcare, where the harm they ultimately cause will not be limited only to your financial well-being....
Take the number of homes available, A, multiply by the probable rate of default, B, multiply by the average out-of-court settlement, C. A times B times C equals X. If X is less than the cost of student loans in default, we don't build A.
On a long enough timeline, the survival rate to everyone drops to zero
Duhh!
Jobs suck are for most are paycheck to paycheck.
Housing prices were prevented from finding their floor by the Bernank and have reinflated since then.
No one I know has 20% of 400k down and another 20% in the bank they are going to leave there and not put on principal.
Paycheck to paycheck is so 1990s. Now its paycheck to EVERY OTHER paycheck.
If you get a biweekly check, one check goes towards rent/mortgage and poof that's gone.
The every other check goes towards health/homeowners/car/etc insurances, utilities, car note, fuel, groceries, and all other expenses, then you have to wait another 28 days to do it all over again.
The rent/mortgage rates today are completely out of whack with what the average American is earning.
Housing never had a proper correction from 2006 bubble crazy levels. That small dip in 2009 was basically 2003 levels. It needs to go back down to mid 1990s levels to get millenials and Xers to get back into the market again.
The house I paid $175K for in 2008 is now supposedly worth $235K. It was supposedly worth $210K in 2006. Any bidders at $235k??
I just hope they don't tax me at those inflated prices.
HOW ABOUT TAXES....PROPERTY (AND ASSOCIATED CRAP TAXES) IN 77024 can be anywhere from $1,000 to $4,000 per MONTH!!!!
This is government RENT to RENT, not REnT to OwN!, It's just RENT on land and a house that the government really own.
We criticize China for their government declaring "ownership" of land and the only difference is their ownership is overt....and our is covert.
Valid point, but if we keep perspective, we must realize that American Luxury happened in a unique era of human history:
A. Most of the world was recovering from WW1 and WW2 in the 1914-1955 era. In the 1955-195 era there was not China Factory. Energy (oil, gasoline, electricity) and Resources were cheap and plentiful, even if the cost and supply of Money was not.
B. Since then, we're seeing unprecedented global competition: They have the educated people willing to work hard for little money, monstrous global factories in places of cheap labor and little/less regulation (safety, environmental), and they are competing with us for resources and energy. The only card left to play for US/us, is an ever increasing supply of cheap 'Money', which -- if played right by clever and well-positioned people -- can be leveraged to acquire the real (Primary and Secondary) assets in these Developing Markets. They give us Stuff, we give them bits of paper, that our Elite/Oligarchs use to acquire their Resources, Factories, Banksters and Politicians.
People who were born in and grew up during this unique period of human history (born in the US in the 1940s), are THE luckiest people in human history. Period. This unique era will NEVER repeat itself.
Admonitions & Lessons:
1. The fiat USD as the GRC is THE Economic and Financial Ponzi of Humanity. It is a socio-economic system of fiat financial slavery.
2. Organized Religion (especially the 3 Monotheistic Religions of mandatory adherence and Absolute Worldviews and their elements of Extremism), is THE Human Ponzi. With its concepts of "Invisible Guy in the Sky", "Fiat Sin", "Eternal Guilt", "Eternal Carrot/Stick" and "self-appointed perpetual Middlemen", it is a system of fiat Mind/Spirit Slavery. It keeps the poor from murdering the unjust rich.
Between the Money (secular) Rulers, and the Religion (clerical) Rulers, Humanity is itself in perpetual slavery. And you can't just solve the Total problem by "solving" only one half of it. Those who hold the view of solving only Secular Problem, are either of little brains, little education, or of little life experience -- if they honestly 'believe' this to be true. Otherwise they are crooks, agents, trolls and shills of TPTB.
Anyone younger than 102, whole life has been a lie.
I have friends and we discuss this all the time. We have been educated with lies since the beginning of our education. From the Civil War forward, we have been told things about this nation and how it funticons that have turned out to be outright bullshit.
I'm still pissed about the Global Cooling bullshit the progressive frauds tried to sneak into my head in the 1970s. I hate control freaks of their ilk with a passion.
@TuesdayBen
The other scare back then was that we were going to drown in garbage, and we can't build landfills big enough or fast enough to handle all of the waste.
Nowadays you can play golf on top of the landfills because they become converted to parkland.
Naw, the banksta, politician, and FED are livin' the lies...yes, and many Murikans...but I'm not. Nor are many of us here..
living the lie...been going on for a lot longer than 102 years. "To lapse in fulness Is sorer than to lie for need, and falsehood
Is worse in kings than beggars." William Shakespeare, Cymbeline
Yes. Yes it has.
Welcome to the club.
Where's the graph of LFPR vs. homeownership percentage?
first graph is the slope of hope brought to you and I exclusivly by da fed. decliningnominal incomes with wealth treansfer impleding home ownership (and that is with ultra low fed distorted interest rates).
slope of hope and permanent change for the worse...
Nixon took us off the gold standard in August 1971. 43 years driven by fraudulent money.
Nixon was forced to go off the gold standard due to the Vietnam War and the Great Society Welfare program brought to you by LBJ and the Democrat Party. One could make the arguement that Democrats gave us the situation as it relates to the monetary disaster we are living today.
I know left/right blah blah blah. Just remeber when you hear the MSM and Democrats on teevee blame the republcians and the gratuitous its Bush's fault.
IT'S GOVERNMENTS FAULT. Period. End of discussion.
Liberty is the answer. Government is the problem.
Oh and the Federal Reserve was created on Christmas Eve while everyone was waiting for Santa by Woodrow Wilson..... a Democrat/Progressive which is just a nice way to say Communist.
Take the false paradigm Team Red/Blue bullshit somewhere else. You and your ilk are killing Zero Hedge.
There are some good recordings out there of pres Kennedy talking to staff, and concerned, about the monthly outflows of gold.
To the poster above you, yes, aug 15, 1971, but it was a bit later (73) until what we have today. They tried the Smithsonian Agreement to declare by fiat fixed exchange rates which collapsed as an idea in short order.
When we went off Silver our coins, there was a backdoor for years to convert paper to silver after '64.
im 40 has my whole life been a lie?
only the part after 1971
.... errr... oh wait.... nevermind.
nope
you are back to asking why no deflation. The answer is because they don't have to. They can print and they will print. They will eventually buy stacks of old tennis shoes ond gum wrappers, what ever excuse they need to crank more currency into the system. Hyperinflation will seem painless. Deflation always hurts.
We live in a purely fiat world now and in a purely fiat world deflation is simply not done. In the past they allowed brief 'recessions to cleanse the system. Now the system is too fragile and so print they must.
Can't have a quadrillion in derviatives go bad can we.
It was a quadrillion two years ago. Now it's gotta be a quintillion.
ya, I'm hopeful for the impossible, but I know they will inflate or die. Part of me wants to see justice in my lifetime, which may not happen.
we have to set this bag of shit aside(double bag it) and live a non-matrix life style.
i'm in a very pissed off mood, but see the non-sense of trying to change sumting dat aint gonna happen. but good place to vent the truths of their folly. fuckem and try to game it where ya can(hopefully honestly). we truely live in the age of lies, lies and liers lies...saw a good bumber sticker today:pic of o with caption, hold on, (with hand up like the oath) i'm not done lie'g,ha, oh yea, fuckem (again)...
The % of people that want to see Justice is about 15% now. 15% are awake, aware and pissed. The tipping point is just about here. Just look at the Main Stream "news" trust and viewership amoung the people its plummiting.
I'm glad I got in when I did. If it weren't for my VA loan I wouldn't have been able to get in when I did.
I make roughly 80k a year, and where I live a modest 3 bed / 2 bath homes sell for well over 400k and into 500k territory. As it is, I'm just moderately keeping my financial head above water. Property taxes are bitch, that's for sure. I'd be doing ok if the state weren't taking 7000 dollars every year, transforming a modest 1600 mortgage into a 2200 dollar mortgage. Atleast I've got a 30yr fixed.... /sigh
All I'm trying to do is save money for retirement and have a place to sleep.
If things go south, move to a state where (1) you can make enough to float your boat and (2) your household income is below the median for the state.
http://www.justice.gov/ust/eo/bapcpa/20090315/bci_data/median_income_tab...
That will qualify you, no questions asked, for Chapter 7 bankruptcy where they basically write off everything except student loans. If you do it right, you can keep your car and ditch your debt in 2 years.
NOTE: They look at 2 years of income history when considering the filings, so you have to plan ahead.
Regards,
Cooter
it all implodes when the top 5-20% can no longer afford the mortgage and taxes and insurance on the home and decide to join the tent communities.
In the great state of NJ, a modest sized home in a half decent neighborhood will run you 300-400k and that comes with a 9-10k tax bill each year plus about 1200 per year in insurance. Add in a few hundred here and there for fixing things and it quickly engulfs you
Don't buy a "home" and expect it to be a 100% guaranteed money maker when you need to get out! Not everyone needs to own or even ought to. Allot of US should let others take the risk.
Who wants a house when you can have a 50K car and Unlimited Data on the latest I Phone. Talk about effed up priorities. Not to mention all the booze and other crap being paid for with student loans.
That's right, blame it on the underpaid young people. They should all sell their cars and phones to pay 50% too much on a "mid-century" shit box.
Yes, they are underpaid and there is a critical lack of career employment.
Yet they've also been trained since birth to be consumptive drones and to rely on .gov and/or Parents. The Parents and .gov are going bankrupt to fulfill dreams that likely won't come true while enriching banksters and the Corporatocracy.
Seems like this is the perfect way to level out the playing field by making everyone dirt poor, financially, morally, spiritually, so they have no power to do anything besides kiss the royal ring and bow LOW. Our window of opportunity to do something about it is closing. Or has it already closed?
Pajama Boy would rather sip coffee and shop for Obamacare plans then clean gutters or mow the lawn.
Houses have priced jobs out of the market. When your first 40 hours labour per week pays ONLY the mortgage - not food, not utilities, not transport, not rates, not clothing, not REPAIRS, etc etc etc, it ain't worth working.
When worker boy out-spends pajama boy, the keep-up-with-the-Joneses mentality kicks in and starts doing some good for a change.
You really think Pajama Boy gives the slightest fuck about Obamacare??? Sure, dole bludging dumbfuck gets out of bed at 3 o'clock in the afternoon and starts picking out a health care plan. Yeah, Pajama Boy got his ass out of bed and went to vote for Obama becoz he KNEW that ONLY Obama would give him free health care and it REALLY REALLY mattered to him. I don't know who has been smoking more cones - you or Pajama Boy.
I remember the days - everyone was sitting around, pissed and stoned out of their brains, and then one of them would say, "Gee. I wish we had cheap health care." And the other one would say, "Yeah. More than anything in the whole world. If only someone would offer us free health care. I would vote for that!" ...
@duo
We don't live in the 1950s anymore. In order to mow lawns, pajama boy has to get an LLC, pay taxes up the ass, and earns a whopping $50 a day. Then he is competing against illegal aliens being paid under the table who will do it for much cheaper and won't get government intervening on them as they would on said pajama boy.
Mowing lawns and cleaning gutters will sure help pajama boy afford that $1,600 a month mortgage, sarc.
A lot of nostalgic romanticization of the "good ol days" has no basis in today's reality.
Supposing living with the parents isn't an option (do they own a house?) then you are going to have to pay to live somewhere. You can rent or buy. Buying is hard but you do have a piece of land at that point. What you do with it is up to you. Or you can rent and sink your currency into another investment.
They will mine more gold and silver. They will find a way to counterfeit bitcoins. They aren't going to make more land, well, unless they are Chinese or Arab but who really wants to live on a desert island?
buying a house is not worth any more.
http://www.prosper.org.au/2011/05/31/hit-over-the-head-with-a-plasma-scr...
http://s144.photobucket.com/user/hiredgoonadl/media/ipod_final2.jpg.html
Looking at the age demographics of the 20-24 and 25-29 for various countries, I see...
1. Jobs in Emerging Markets in factories, sweatshops and call centers.
2. If the OECD countries, only 3 (Denmark, Russia and Japan) have jobs for University grads*. And Germany, barely.
*FYI... in many countries, who do not mimic the Anglo-American system, you do not graduate from University until you have your "Diploma" -- which is a total of 6 years, i.e. the Anglo-American equivalent of a Masters degree (4+2 years). So, by the time you have a Univ. Diploma, you're ~ 24-25 and then enter the work force... and start making money in your 25-29 age group. Especially if not yet married, so you can focus on the CEO's/company's interests.
so, the Fed has won. the american peasants are fucked either way. Wall ST owns all rental units and the Fed now owns all mortgages. either way, you are now a serf to the banksters. unless you are lucky enough to have paid off your mortgage.
Yep, cross off that step towards the New Feudal World Order. The real property redistribution from the middle class to the elites will be completed as the baby boomers retire. Having effectively destroyed savings with ZIRP forever, aging homeowners are being squeezed with higher cost of living courtesy of QE. Those retirees lucky enough to own their own home will be forced to use re-fies, reverse mortgages, or downsizing to take equity out of the home so they can live day to day. Any inheritence their children thought they would get is going to evaporate into a day to day struggle to just make ends meet. All that will be left is retirement accounts, 401s, IRAs, and Social Security. That is the next "fear" play when the engineered stock market bubble is popped by the Fed, and the people are panicked about their retirement accounts. Some Frankenstein derivative of MyRA is going to be created between govt and bankers to transfer all retirement equity into an unholy nexus of debt courtesy of bankers and govt to "protect the people".
Silly people.. dont act all surprised. It never was about the 'american dream'. (spoiler- that was a lie)
This lil vid puts it into a very nice perspective. And honestly, If i had seen this video 20-30 years ago I don't know if I coulda believed it.(yea, 30yrs ago I was early teens, so I cant say I woulda cared if I did believe it), but seeing things the way it's all working out these days?..
appears 100% spot on.
https://www.youtube.com/watch?v=Xbp6umQT58A
Around here, Fred Thompson is constantly advertising Reverse Mortgages and invoking Ronald Reagen's name, as if two Republicans make it right. He never once mentions debt slavery to the bank!!!
101
wrong...in hyperinflation it is the guy with the paid off mortgage who gets screwed. The guy with the debt gets off easy.
You need to read history to see how this has always worked. Even though they do change the rules, so far debt is forgiven one way or the other. A nation full of debt slaves is a restless nation. One that has just been relieved of debt might just seem grateful.
correct, things only change in earnest once essential supplies can no longer be delivered. Then all hell breaks loose (world war). History is very clear on this.
Just cause the"papers" are signed and the Fed and lawyers and judges say they own it does't mean they do--- They need inforcement to validate the claims and who ever occupies the property/house/garage/vacant lot/ farm yard/ field/ woods/ factorybuilding/ armory/ fort/ etc is the one/group that owns it-- every thing else is BS or if you believe they own it cause they say so on the TV---
101 years... :
And don't think the retirees with the paid-off homes have got away scott-free yet. Sure, they may be debt-free but they still might get tempted by the reverse-mortgage. And they don't even have to be frivolous about it. They don't need an overseas vacation. A sick kid, an expensive operation, or a combination of hyperinflating food prices, no savings and a stolen pension would be enough to get them started.
If it flies, floats, or fucks.....rent it.
The one thing that The Fed's or even the idiots on CNBC always forget to mention when they wonder out loud why more people are not buying homes, is the cost to operate the Home.
My house has been paid off for 10 years and I still marvel at the cost of taxes and upkeep. If I did not do the work myself I could not afford it. And now I can't water my lawn for fear of getting a $500.00 fine if I am caught. And of course since everyone is saving water now the amount of money flowing to the water dept has dropped so they are going to raise the rates for water we can't use. And don't forget if I happen to park my car facing the wrong way in front of my house. $50.00 fine, and that's if I don't get towed away. I have told my son's don't even consider buying a house when they get married. They can have this one.
In Soviet Amerika home owns you.
so this only has to do with messed up priorities of youngsters and houses not being cheap enough?? I guess it has NOTHING to do with:
1. there are no decent paying jobs (many have been off-shored)??
2. college education is so ridiculously expensive that many are already so far in debt when they are ready to enter the workforce that the idea of taking on more debt by buying a house seems ridiculous??
there are some real fucking morons on here. yeah - it's all the kids' fault. not the generations before them.
yet the same guys here saying how young kids are irresponsible for NOT buying a house (i.e., taking on more fucking debt) are the ones also saying you're a retard if you take on more debt. what a joke.
^^^^^^^^^^^^^^^^^^^^^^^^^^
THIS ONE!!!!!!
young kids are irresponsible for NOT buying a house - I must have missed that talking point
It is usually expressed in the form of, "Lazy buggers. They're 30yo and still living in their parents' house." Does it sound familiar when I put it that way?
Disagree. Kids are smart not to join the perpetual debt wheel for school, house, cars, etc. Get a used honda and work on it yourself, go to college only for computer science, engineering, physics, math (not communcations or fashion). Even if you get that IT or Engineering job, corporations are still working overtime to offshore, nearshore, H1B visa you out of that job ASAP. You think jobs have left in the last 15 years, you have not seen anything yet. Soon it will be part-time 9-$12 an hour, if you are lucky full-time 15-$30 an hour and you can eat (maybe).
They own the big white building on Constitution Ave.
Expressed as a formula:
Bankster = printer + slumlord + thief
Background in narcotics trafficking, and satanism is beneficial.
Instead of dealing with, or rehashing, silly and most obvious numeric data, let's look at the real reason, which for some peculiar reason nobody in the CIA-pop culture-entertainment-corporate-media mentions:
We are now in the fourth official jobless recovery (actually the sixth unofficially speaking) and during each time, exactly one-fifth of the US workforce has been laid off --- THAT MEANS EVERY SINGLE EFFING JOBLESS RECOVERY FROM A SO-CALLED ECONOMIC TURNDOWN OR MELTDOWN, PRECISELY THE EXACT SAME PORTION OF THE WORKFORCE WAS LAID OFF.
Now, how in creation can such precision layoffs just be randomly accomplished?
And that is the reason for the falling home ownership.
They own the White House. What else do you need to know?
.
Thanks, Obamacare!
Welcome back the "robber-barons" and the new rentier class...
The outcome will be no different this time around. Get long black markets and sharecropping, beat the rush.
and the ramp in the Fraud markets commences right on time going into the close of London.....
Give easy credit and pretend there is a lot of demand for houses.
or drop the level for 24% percentage points (instead of this 0.3 drop) and you'll reach German levels of homeownership. no, I'm not kidding. the German homeownership rate is... 40%. To state it differently, 60% of Germans... rent
correction: I was just e-mailed that I was quoting the old West German number. Today, (Reunified) Germany has - according to EuroStat - a homeownership rate of... 53%. This of course means that only 47% of German households rent. Though the previous numbers - I'm told - are still correct if you use population instead of households. But this kind of statistic is generally based on household, so please excuse my previous... exxageration
What a fucking NIGHTMARE
The trend is your friend.
I'm way ahead of the trend.
Hmmmmm... home-ownership rates just happen to track the labor force participation rates. It almost makes one think that home-ownership has something to do with jobs..... almost.
or wages...
< meh > humanity isn't just another ponzi Doc, it's the only ponzi...
same as it ever was.
Population is a pyramid scheme. Debt is the ponzi.
irrelevant, one and the same, the outcome certainly is anyway...
Won't argue there.
was thinking that same crazy thought!
They saved the assets of the boomers at the expense of the young. Thanks a lot motherfuckers.
Don't know about my Boomer assets being "saved".
I'm, in actuality, struggling to understand how to PROTECT what I have, in this corrupt casino.
In any case, my kids will end up with what I have eventually, so they are, at least partially, most assuredly not "fucked".
I can't speak to one person, or what you have or have done. Juicing the stock market and housing market saved the assets of anyone holding them. If you are a young person buying into the stock market or housing market, you are buying in at an ATH. Juicing asset prices benefits holders while screwing acquirers.
Yeah, but with no one to buy, how exactly am I benefitting from this bubble?
Paper "value" means nothing and it certainly doesn't mean that my assets have been "saved".
As I said, this is all BS, and I'm looking to convert to REAL wealth, to preserve what I have.
Also, the ATH argument has been made before, by us late boomers, concerning early boomers and even the "Greatest generation".
I'm not going to argue about what you do. It doesn't make sense to, particularly with someone here. People here are not representative of the population at large.
The point is that it's great that boomer's assets are juiced to be passed onto their children, but wouldn't it be preferrable if those children could afford a house on their own rather than waiting until their parents die? And what about those who don't have the luxury of parents with money?
And also, the ATH arguments of the past were not accompanied by a massive amount of record debt that'll need to be paid when you all are gone.
Oh, You had parents that left you something besides getting rid of all their bricka bracka.
We do not receive the Aerial Sharon treatment – decades life support in a brain damaged comatose state (Terri Schiavo testifies). .
Nothing is getting passed on until we institute a euthanasia program.
A person’s assets are spent in the last week of their life. Once the ‘assets’ are gone, the plug is pulled, and not a moment before!
I call
you are correct. The asset base was saved. It is the retirement and savings of everyone, not just boomers but yes the young get screwed....for now...once hyperinflation hits then it is those on fixed incomes who suffer and the young who can argue for higher wages.
In collapse it has ALWAYS been the pensioner who gets screwed...ALWAYS.
Boomer assets haven't been saved as much as they have been "temporarily uncollected". The Fed has given boomers a couple year reprieve from losing everything and by everything I mean as much debt as assets, both will be walked away from when the storm hits.
Mourning in Amerika
I'm happy with renting now. Long showers, no yard work, no repairs and savings. This is called downsizing after 35 years of raising kids, wait, still two down in the basement....fuckin milennials, I should have never taught them the fun of kicking a dragons ass.
You're lucky. I know a family who's 3rd generation is still in the grandparents house.
Kids in the basement and got the loft converted for the 2 grandkids. Things are looking up, I said. lulz
However the kid does have a property, which is rented out as they cannot afford to live on their own.
But they are happy, they think, as they've got 2 mortgages.
My boys own some vacant commercial acerage on a lake all paid for. They inherited the $$ as children which was supposed to be for schooling, I had invested it in this piece of property till that time came. They have both decided to keep the land. One piddles through college, the other works. WTH I remember in my 20's even though I owned my first home at 21, I didn't want to work, drinking beer by the pool thinking I was it, was much cooler.
Kids will find their way, just give them time. Nobody ever wants to grow up and be responsible unless they have to. That's life.
Because the beginning of banking de-regulation began in 1982 - 1983 while RONNIE was POTUS.
So they pumped it up with the S&L's then blew it up. CRISIS! Hello? Big Banks Don't Like S&L's & Credit Unions.
Then came the repeal of Glass-Steagall and the derivatives explosion
POOOOOF!!!!!!!!!!! NOW THIS SHIT IS A FUCKING CRISIS.
All in 30 years time!
I had a friend, perfect sheeple. He has been in financial difficulty since 10 years ago. Had a half decent office job but was working delivering pizzas and curry for a takeaway in the evenings to make debt payments meet.
Had every gadget, fab and bullshit must haves.
Was on verge of defaulting and I felt sorry for his family, 2 young kids and sat down with him to help him sort out his finances.
He had 2 teles and cable and premium subscription for Sports. I asked why do you need to pay 50 bucks a month on top of your cable to watch sports. You should have dropped that long time ago.
And guess what was his reply?
"No, no, no. You dont understand, I cannot do that!"
I just left it there and wished him good luck.
Fuck them.
1) CH 7
2) Move out of the USA to a farm somewhere.
He's in UK.
Did tell him to declare bankruptcy, rather than wasting his life trying to pay a debt which he possibly cannot pay off in his lifetime, as he was struggling just to pay the interest on the debt + expenses or atleast downsize. Just a redundancy away from total liquidation.
But the prick has ego and principles, though he has no problem lying to claim insurance on mobile phone. lulz
I repeat, Fuck Them.
UK has much less lenient BK laws. They would open debtor's prisons there if they could.
Then there is that whole "face saving" thing the average UK citizen is ingrained with. Not logical when one realizes the whole bankster game is set up to crush the average citizen.
What you can have debtor prisons??? Can you call me my number is (212) 902-1000
http://en.wikipedia.org/wiki/Debtors'_prison
https://news.vice.com/article/debtors-prisons-are-taking-the-us-back-to-the-19th-century
The so-called "Debtors Prisons" in the U.S. are for people who fail to respond to post-judgment discovery (mandatory information sheets, interrogatories, requests to produce records, depositions). Most debtors are never hassled for these in the first place, others comply and that's that.
So how do people find themselves in jail? One of two ways: you've got a county where the creditors bar is way too cozy with the judiciary and the gendermarie (you need this triad for it to work) and they set debtors for repeated depos at a distant corner of the county or somesuch other scheme and just wait for the debtor to miss one. Or you've got a debtor who has absolutely refused repeatedly to provide the requested stuff in a county that takes that seriously (many *don't*).
There are more stories of people being pulled over by a cop and told "do you know there's a writ of bodily attachment out on you, I'm supposed to take you in but have a good day and you might want to take care of that" than there are of people being held with the bail set at the amount of the debt and that money being turned over to the creditor when they make bail.
Check out my book for details on the ins and outs of going broke with or without bankruptcy:
http://www.amazon.com/Debt-Hope-dirty-survival-strategies/dp/1907498524
not long ago I would have scorned your comment as deluded hogwash. and then I researched a bit... and found out about the "beauty" of a private prison system... +1
Keep in mind hardly anyone is in actual *prison* (facilities for felons with sentences for crimes for which they could get over a year and a day) with respect to these debt situations.
Private jails (where they send the misdemeanors which cannot be sentenced for more than a year) are very uncommon.
But debtors *can* be held for much longer than actual criminals. They can basically be held as long as the judge wants (though scholars agree civil contempt should never be more than 18 months or so). A guy who was suspected of squirreling away $2.2 million in a divorce was held for 14 years, I believe it was in Pennsylvania. He would have done less time had he been convicted of *STEALING* the money. His claim was that he lost it in bad investments.
And it really really sucks to be in jail long-term rather than prison. Prisons are different than jails, and once they sort you into the one they want to send you to you're typically going to fit in there along with people like yourself (provided you haven't pissed somebody off so that they send you to a tougher place than you belong--see Liddy, G. Gordon). Jails have fewer services for you and are designed with short-term in mind.
Looks like some good work on the book and thank you for the link, I will give it a read.
Good one! LOL
But dude, credit him for not being a degenerate gambler or for blowing his money on booze
But being stupid sheeple is equally worse. They both end up in the same place.
Well, I was the degenerate in that puritan crowd. I blew my money on booze and parties (not gambling though) and a tin foil hat wearer to boot :)
Paid off my debts 5 years ago and have never been happier!
Had been telling them since over 10 years that this good times will not last and they should be careful. They thought I was a conspiracy loon.
I can't even have honest conversations about my feelings on modern affairs anymore. Given up. Decades of media conditioning have programmed most everyone into the same sphere of thought. Political correctness, conspiracy theory labeling, etc.. people have been cained out of their critical thinking faculties and trust what they are fed. Fucking bots walking around, might as well be zombies.
Agree, Try any group of people.
Get them to see that the only reason we are not living in chaos right now is because of massive govt spending.
Many can see the truth in this, its right in front of them.
The problem comes when it is explained that the 17 Trillion in .gov spending and the 4 Trillion in fed spending is a collectve fantasy.
There is no collateral behind the 21 TRILLION debt.
The U.S. has not passed a budget in over 6 years.
This huge development is never, ever mentioned.
Not new, unfortunately. Warren commission, Pearl harbor and so on.
This is not bearish news, you just have to spin it the right way. Think of all that pent up demand for home ownership.
It is irresponsible to write an article like this and not address the most important demographic change - baby boomers retiring, entering senior housing or dying and releasing their home(s) to the marketplace.
It is blindness not to see what ever increasing de-regulation of financial institutions has done to this country.
I call bullshit on the seniors retiring. If it weren't for seniors working in 'retirement' we would be losing jobs every month. I can't comment on their housing arrangements but I can assume that if they are re-entering the workforce at age 55 they probably aren't buying the white patent leather loafers and moving to sunny FLA.
http://www.zerohedge.com/news/2014-10-03/hiring-grandparents-only-230k-s...
That's because the elderly are actually going back to work.
With half the country making 28k annually or less, who can afford a home?
Funny that. Aren't prices supposed to go down to accommodate slackening demand?
Maybe those that could buy choose not to since it's a ball and chain and they can move on the fly. Shit maint,property tax. etc etc. Over priced market anyway.
Wasting away in Obamaville. Labor Participation Rate looks earily similar. Huh, who knew you needed a job to buy a house.
It's not just affordability, it's the illiquidity of the investment. Transactions costs are ever-widening, and roller-coaster prices give no one confidence. It's not worth it to sacrifice all mobility. Even our medical doctor 31-year-olds are still renting.
Problem for the economists is that the US housing cycle was the foundation on which everything else was built. Used to be that you got the timing right on this and you looked ilke a genius. The US does not recover without construction jobs and durable goods sales. The geniuses below Canal Street really-truly killed the goose.
CORRECT.
Sounds about time for the FED and the next president to have some "Ownership Society" program to convince people that cannot afford a home that they whould buy one.
Wait, have we been here before?
well when communists run your country the oligarchy own everything!
Under capitalism, man exploits man. Under communism, it is the reverse.
Just call it deception, fraud and theft. Otherwise people might confuse it with this:
http://www.youtube.com/watch?v=mq__Z-Z_Ofs
which is still yet to happen here.
Obama was a college student back when we were last at these levels. Obama knew that we could not have a revolution if things were better in the future. He has now succeeded in rolling most of the metrics of American leadership and success back decades.
Now he can get serious about implementing his revolution from within. It starts with opening the floodgates of immigration...
Anyome who doubts that Obama keeps his word only has to look at the coal industry, which he said he would bankrupt.
It started long before Obama. There are other books that can educate you, but I find these two the most informative and entertaining:
http://www.randomhouse.com/book/101014/liars-poker-by-michael-lewis
http://store.kobobooks.com/en-au/books/The-Big-Short/TOa51-XTeU2HKw5B23v...
Once again, my apologies for plugging books. No my name is not Michael. You can always try at the library.
anyone notice that the "US homeownership rate" chart above looks much lioke the "Labor participation rate " chart
the boomers own the largest share of second or vacation homes. the kids move back in the folks large house, and the folks go live in the beach house, or if they are old enough they go into assisted living, which is somewhere between a condo and a hotel, meals, housecleaning, etc (and prices are reasonable) because there is oversupply in traditional housing you can rationalize no new demand, other than chinese banks investing american dollars in american real estate. location will count, near the beach, near shopping medical and other services, and new technology will make it possible to go off the grid with all the utilities. the only way they can pull this off is a cash for shacks program. tear down old properties, which have high upkeep, and toxic materials. but people in the third world have the most to look forward too, but what are US homebuilders doing to capture that market?
‘cash for shacks’
Nice.
Are you talking about reconstructing entire metropolitan areas?
Come to Detroit if you need a home.
Here’s a 5-bedroom, architectural brick beauty that was just reduced to $39,000. 20 pics!
2405 Edison St Detroit, MI 48206
http://www.realtor.com/realestateandhomes-detail/2405-Edison-St_Detroit_...
Conveniently, here is the past six months of crime stats you’ll be facing in that ‘Hood upon move-in.
Only 575 crimes within a 1 mile radius over the last 6 months:
http://www.crimemapping.com/map.aspx?ll=-9251197.826757943,5217565.14588...
edit - reported crimes
What happened to the free homes and the one dollar homes? Have they been taken off the market already?
The housing bubble and colapse is all due to the collectivists who perverted the housing market. After all every one is entitled to a house right?! James Johnson and Bill "Trailer Park" Clintion are initiators - Aided by an unwitting Greenspan. Ad in real piceses of shit such as Chris "Dirty" Dodd, Backdoor Barney and Angelo "Special Friend" Mozillo and you have today's government. This is no longer America land of the free. It's now land of the freebee! Good fucking luck.
'unwitting' Greenspan???? are you fucking kidding me????
every president wants to claim that home ownership went up during their administration. as much as he played a large role, 'slick willy' wasn't the only president responsible for creating the bubble in housing - there were a lot of folks involved in that.
I was going to call, Scapegoating. But you might be right -
http://www.ritholtz.com/blog/wp-content/uploads/2011/04/2011-Case-SHille...
If it was the collectivists that won then the houses would be either CHEAP or NON-EXISTENT.
Fact is, houses are PLENTIFUL and EXPENSIVE.
Who Benefits???
THE BANKSTERS!!!!
Wake the fuck up!
So, now everyone is realizing the only increase in real estate sales over the past few years were "investors" buying up cheap foreclosures?
Here's the thing with the house prices......the Fed wants them to rise to infinity, right? But at some point, doesn't it get TOO high for the majority of the population? I mean, if you are looking for hyperinflation, its in house prices.....and if you even see decliines in house prices, its still in a hyperinflationary funk because its relation to wages, especially for young people.
I think another reason (besides being broke) that young folks aren't buying homes: we are "sign here" adverse. I don't wanna sign no mortgage, don't wanna have any committments to any asset class that has more risk than betting on the Cowboys on Sundays. Also, culturally, we are getting married less and later, and having kids less (and maybe even none at all).
But thanks to QE4EVA, this will not matter. Those house prices WILL BE NEXT UP AND RISING, no matter the cost. My generation be damned.
The collectivists took complete control under Nixon. No fault divorce was first signed into law by Reagan(he later called it his biggest political mistake).
Fannie Mae & Freddie Mac 1970:
In 1970, the federal government authorized Fannie Mae to purchase conventional mortgages, the same year it went public on New York and Pacific Exchanges, (Residential Mortgage Loan Origination 2nd edition pg.8, J.Keith Baker 2010), i.e. those not insured by the FHA, VA, or FmHA, and created the Federal Home Loan Mortgage Corporation(FHLMC), colloquially known as Freddie Mac, to compete with Fannie Mae and thus facilitate a more robust and efficient secondary mortgage market.[12]
1971, gold standard dropped. All to enslave a generation of TeeVee indoctrinated boomers. No one's marrying or borrowing for a very good reason.I'll say it again, just for you:
If the collectivists were in control then the houses would be either CHEAP or NON-EXISTENT.
Fact is, houses are both PLENTIFUL and EXPENSIVE.
Who Benefits???
THE BANKSTERS!!!!
Wake the fuck up!
We're still only halfway through resolving the massive shakeout of 2008.
10,000,000 jobs shipped to China is roughly 10,000,000 homes not bought.
20,000,000 illegals in the US not even counted, and most of them are not owners.
Banksters bought thousands of houses on the dip, helping the financial stats but pushing out yet more potential owners. There are still probably a million or two houses in financial limbo, who knows how they've been counted, things could be that much worse or that much better than shown. Probably worse.
I don't think we're at the halfway point by any stretch.