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Why Are Half Of All 25-Year-Olds Living With Their Parents? The Federal Reserve Answers
Back in 1999, a quarter of all 25-year-olds lived with their parents. By 2013 this number has doubled, and currently half of young adults live in their parents home.
While the troubling implications for the economy from this startling increase are self-evident, and have been extensively discussed both here and elsewhere (and are among the key factors pushing both the US and global economy into secular stagnation), a just as important question is why are increasingly more young adults still living at home.
While we admit there is something morbidly grotesque in none other than the Fed taking an active interest in this most devastating development (for the simple reason that it has been the Fed's own policies that have unleashed not only the $1.3 trillion wave of student debt but an army of Millennials in their parents' basement), it is the Fed itself that has been the latest to attempt an answer.
Here is the Fed's response to "Why Are More Young Adults Still Living at Home?"
Economist Maria Canon and Regional Economist Charles Gascon noted that many factors have been suggested for why young adults return to or continue living at home, including significant student debt, weak job prospects and an uncertain housing market. The table below breaks down the percentage of 25-year-olds who were living at home for the period 2012-2013 in each state in the Federal Reserve’s Eighth District as well as in the country as a whole.
Labor Market and Higher Education
One potential reason for the increase in young adults living with their parents is the labor market. The authors highlighted research showing that individuals at the beginning of their careers often need more time to transition into the labor market. This is reflected in the unemployment rates of those between 21 and 27, which are often higher than for other age groups.
Earning a college degree can help with labor market outcomes, as young adults with a college degree are more likely to live independently. However, additional research has shown that the underemployment rate for recent graduates was about 40 percent during the Great Recession. Canon and Gascon noted: “An implication is that a significant portion of recent graduates were earning lower wages than what they should have been, given their education.”
Also affecting many young adults is that they started their post-education careers during a recession. Canon and Gascon discussed a study noting that those entering the job market during a recession pay a price for about a decade. They wrote: “That’s because they start work for lower-paying employers and slowly work their way up toward better-paying jobs.”
Housing Market
The nation’s recovery may also play a role in young adults remaining at home. As the economy has grown, so have house prices. Canon and Gascon pointed out that national house prices have increased 21 percent since 2012, and rental prices have grown even faster in many areas. They wrote: “Because most youth would be first-time homebuyers, they have no housing equity to regain from the rebound in house prices after the housing crash.”
In the Eighth District, housing generally remains more affordable. The authors noted that the median house costs 3.3 times the median household income nationally, but less than 3 times the median household income in most District states.
Student Debt
According to a 2014 survey, more than half of first-time homebuyers said student loan debt was delaying saving for a down payment for a house. A 2015 report from the Federal Reserve Bank of New York found that a $10,000 increase in a student’s average debt increases the probability of living with parents or other family members by the age of 25 by about 2 percentage points.
* * *
To all the 25-year olds out there reading this from their parents' basement, all we can add is that these are actually all correct. There is just one thing left to add: for all of the above you can thank, who else, the Fed for blowing the biggest debt-funded asset bubble in history.
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FUCK YOU Bernanke!
These youts should be grateful they're not living in a foxhole .... yet
These 25 year olds should just start hedge funds, isn't that right Mr. Yellen?
Or a hedge fund app if they really want to diversify.
I went the easy route and incorporated and IPO'd myself.
Tennessee, IL, and all the states mentioned aren't exactly hotbeds for driven college graduates with engineering degrees. I think those states banned textbooks after the Civil War...
You do realize how few students pursure engineering degrees, right? Or do you live in some weird parallel universe? What a retard. Most kids get degrees in useless poop.
usless poop is an awesome major.
A lot of poop is actually quite useful.
The Illini have one of the top engineering schools in the country dingbat
#1 with a bullet!
You go Illinois...keep doing whatchyour doin ;-)
"Community---Addicted to Encouraging White People"
https://www.youtube.com/watch?v=eu71O36zwiw
Many degrees just don't pass the cost benefit analysis anymore. http://banksterbubble.com/bad-choice-400000-added-to-poverty-this-year-f...
I moved out at 19...I lived hand-to-mouth for the next dozen years. The good life was slow to arrive. I had a negative net worth until I was 30.
Culture. They don't want to work. They want to use their smart phones and sent text messages all day. The other half is likely working hard and many of them are kicking ass. Those that work.
Reading the comments, all I can say is life must be easy at home. I'd have slept in a tent in the woods before I'd have lived at home until I was 25.
I didn't even get paroled until I was 25.
Guess you where luckier then alot of 26 & uppers.
And they started drugging them "young" what, couple decades ago? Wonder if someone saw this coming...
Wow, do I feel lucky. First one is out the door and can handle being out on his own. Five to go.
The wife and the dog too?
That's harsh, dude.
Man so cruel... or maybe not for some?!
Don't forget state and local taxes. If you want to live in a decent town (ie one where you don't get mugged) in the northeast, the taxes on a unit can amount to $10K / year, so the base rent has to be $1K / mo, before the owner even applies anything to a mortgage or takes a profit.
This is huge pent up demand for those starter homes going for $600/sqft in Boston Metro and other areas. All of these kiddies are at home absorbing brilliant nuggets from Pisani and Cramer waiting patiently to unleash a tsunami of incremental, on the margin NEW buyers of homes. Of course this will bump UP the current occupants of these starter homes/condos so they in turn can become the new, on the margin buyers of McMansions and maybe more hip and urbanesque homes such as the brownstones in the South End trying to fetch $1,400/sqft or Soccer Mom mini-mansions in Brookline going for $800/sqft.
It's real and it's coming folks . . . . . any day now . . . . . don't worry it will happen.
My old man in the 70's tried to get me to buy one of those 4 stories on Mass Ave a block over the bridge from Symphony Hall. He was from the So. End. and said it would come back to being desirable property.
$1500 in back taxes and all the free urine you could want. Seriously 'ethnic', complete with weekend stabbings.
I told him I'd rather live somewhere else with the emphasis on live.
Probably worth an easy couple mil now.
Probably is. No doubt The Hub has some very nice neighborhoods and now the South End for the most part is very nice and well maintained (Obozo's tongue would be out wagging with all the "diversity" in terms of Grindr account holders), but these valuations are just complete insanity not to mention the taxes. Thankfully talked my girl off the ledge (she's 28 and I'm 40). She had a couple friends buy condos in Dorchester so for a little while she was all Pisani'ed on real estate thinking it's a "sure thing" . . . . . . . until she analyzed the math with me. Told her to wait three years and have Boston Public Schools Teachers Union offer her a -4% mortgage on something 50% cheaper than where it is today.
Thank you Captain obvious!
Fucking asshats!!!
Forty years ago the future was plastics...
By 2020 it will be tents...
and rocket stoves that run on urine
Yurts, i.e., the tent version of a McMansion.
beat me to it. wonder if there is a securitized loan for that. Yurt securitized obligations...YSOs
It was the winter of our discount tent.
Hilarious...I wonder how many know the source of the pun or that it meant the discontent was just about over. This is the summer of our discontent
Yes! I invented DISCO TENTS!
I have shiney balls.
i actually like the steinbeck better than the shakespeare, a double entendre
Or maybe body bags.
Off topic:
It appears there is some VIX smashing going on in late afternoon trade....
Whats this crap all about?
"As the economy has grown, so have house prices."
What? What?? "AS THE ECONOMY HAS GROWN"??
Only thing that has "grown" is the money & credit supply. (Thanks, Fed & governments...)
Young kids salaries are freaking low, here in Belgium they make about 1300 to 1400 euro's net.
Subtract 500 for a car, 800 to 900 for a apartment and they can't even eat or buy anything anymore.
And going out?
Going to a club sets you back about 100 to 150 per night so they don't go to clubs anymore.
They spend a lot on digital stuff, and they live in their virtual world of happyness and they can't afford a girlfriend anymore.
Let alone have kids....
Only the happy few make a good salary and have a good job with prospects.
And it's getting worse by the month.
Yep, more 25 year old girls for the 50+ crowd.
Maybe that was the plan? Dr Strangelove, anyone?
I think that it is called the 1000 euro generation in Italian:
generazione mille euro
So true, all around the EssU, they want loads of skills and no matter what, they want to pay the base dish washer minimum wage for it (1200 Brutto). I made more 5 years ago than what I do today.
On a side note: When I see adverts aimed at youth, or some bullshit propaganda, I just roll my eyes and think Oh Fuck, the cunts will believe this shite as well. After all, here they are all being brainwashed into thinking they are Prinzessin, Prinz and now König, aimed at adults with the same theme, its all quite pathetic, and the worst is they buying into it, they are arrogant enough to believe this tripe. Bread and circuses here. I think they are way to busy with themselves to even see the chaos all around them.
This fucking bullshit cafe society here is gonna be in flames soon enough. Forward....over the cliff !
Historians will see this as a clear delineating moment when the status quo was clearly doomed. These kids won't be buying your accumlated portfolio, your 'luxury' condos, your health insurance, your bullshit. They will only inherit what is left when the boomers croak.
Too funny...from a 63-year old "boomer". By the way, I'm cutting you out of my will. Upon my death, my assets, which are substantial, will be liquidated, the money put into an oil drum and burned.
Go ahead. When you go to sell those assets, who are you intending to buy it and what price do you think you'll get for it?
Our schools wouldn't cost so much had government not got involved to screw em up. No worries, common commie core another liberal reinvention of education will fix everything...by confusing our kiddies further. The failure trickles up and down, primary<>secondary<>colleges/universities, failure rooted in non-competition that comes of government handouts. Many degrees aren't worth the sheep's skin they're printed on, many in fact are negative value added.
Fun fact: The cost of education has gone up almost twice as fast as healthcare since the 80s.
The American dream used to be a home, taxpayers spend the equivalent putting one child through high school, a combination of parents, students, and taxpayers spend the equivalent of ANOTHER to put one person through college...opportunity lost though inefficient use of other people's money.
"housing is the driver of the economy"... "the strong economy drives house prices"... oh.. I see.
Some GI's returned from WWII theaters (of war) before they were 25 ?
My dad was 19 when he returned in 1945.
After being discharged, he moved to Cincinnati and went to college.
According to Macquarie Research:
http://is.gd/QdV7KJ
The more they do; the worse it gets
In our latest commentary we ask whether indications of easing by ECB and PBoC and BoJ’s potential expansion of its own stimulus would lead to further contraction of global GDP/trade and whether only Fed QE4 could be reflationary.
Deflators of the world unite. As expected (here), CBs are becoming concerned. Not only has the Fed deferred tightening but ECB is sending a strong signal that it is contemplating expansionary measures by Dec’15 and it is likely that BoJ would at some stage increase both size and pace of its own stimulus. Finally, PBoC has simultaneously cut interest rates and RRR. Not surprisingly, financial assets responded in a typical “Pavlovian fashion” by assuming a “goldilocks” outcome of low interest rates for longer; ample liquidity; steady (but unspectacular) growth rates and low but positive inflationary outcomes.
However as discussed here and here, short of massive globally co-ordinated rise in monetary stimulus, incremental changes are unlikely to make much difference and there is an urgent need to re-think the entire Government support system by either allowing restoration of conventional business cycles (unlikely) or embarking on far more extreme and unorthodox policies (such as CBs directly funding fiscal spending, investment and consumption). Erosion of global velocity of money is severely blunting the impact of more conventional QEs.
At the same time, the divergent paths of the Fed and other key CBs are causing monetary and inflationary cross-currents. In essence non-Fed CBs are attempting to export their domestic overcapacity and deflation to the rest of the world and the more aggressive they become, the higher would be the likely deflationary outcomes. The global economy and trade are already shrinking in US$ terms. In the last three quarters, global (US$) GDP has shrunk at ~5% clip with US$ global trade eroding at ~10% pace. The more ECB, BoJ and PBoC ease, the more likely US$ would ultimately appreciate at far stronger pace. Whilst initially an increase in non-US monetary stimulus reduces perception of tail risks and hence stabilizes or even depreciates US$, over the longer-term it is a recipe for much higher US$. As a result, at some stage DXY (US$) could surge from 95-97 to 110-120 and possibly higher. This would further compress the size of the global economy and trade (US$), perhaps returning global economy back to the levels of ‘09-10 (essentially wiping out the last five or six years of growth).
Why is measuring global economy and trade in US$ critical? As discussed in the past, global economy resides on the de-facto US$ standard. Other currencies play relatively minor role, with US$ accounting for ~50% of global transactions and in excess of 70% of global finance (Rmb is responsible for only ~3%). US$ is particularly significant for Asia-Pacific traders, Latam and commodity producers (though less so for Eastern Europe). If Fed tightens, it could potentially get much worse. However, even if Fed does not tighten but simply refuses to embark on a QE4, the outcome would still be higher deflation and lower US$ global economy and trade. In other words, some currencies are more equal than others and therefore Fed’s policies are far more inflationary than equivalent policies pursued by other CBs. If our core assumption of no tightening but no QE4 comes true, then deflationary pressures are still likely to strengthen as supply of global US$ continues to contract.
This explains our unwillingness to buy countries like Indo or Mal and instead our preference for commodity consumers and countries with trapped domestic liquidity and limited external vulnerabilities (i.e. India, China, Phil and Taiwan).
Simple. Because Janet, Ben and Alan have done a masterful job of increasing housing, stock and bond prices with ever cheaper money (soon, you will be paid to borrow under NIRP). Similarly, Congress has done a masterful job making sure housing prices rise, along with education costs, taxes (actual plus deficit) and healthcare costs at rates well in excess of wage growth. All the while, denying there is inflation so they can continue to print. There isn't much inflation in wages and jobs, but there is quite a bit in the cost of living unless one owns assets to offset it.
The "Core CPI" which was the Fed's measure of inflation until 2012 is running at 1.9%, which includes a large drop in energy prices. If energy stabilizes at all, you are going to see even more inflation.
The phenomenon of student living with their parents is not a new phenomenon in most countries.
This is due for 2 financial reasons:
First, to save on living expenses while at school.
Second, to save up money after they graduate, so that they have plenty of cash for their own place (typically an apartment or condo).
In the US, where having Credit has become a religious right in recent decades, this Old-School, Old-World notion of "saving up while living at home" seems strange, or even 'indecent'. It certainly is 'wrong' to Bankers and their Madison Avenue buddies.
But, as the fiat Ponzi and crony Capitalism reaches its zenith, basic financial arithmetic forces these young people to adopt the same survival model that most of the world has been living with for centuries.
So much for being "Exceptional".
With interest at 0% money tends to flow into assets that would otherwise not be affordable, this tends to drive the price up as speculation and not giving a fuck about 0% interest fuels asset booms. Millenials live in their parents for two reasons.
1. They can't get jobs that are good enough to support a standard of living, caused by either they being brought up in a culture that had been destroyed by communist/judeo-bolshevic indoctrination and being lost as adults detached from society and purpose, or the destruction of the american economy by the bankers and commies.
2. Houses are too fucking expensive, caused by the 0% interest rates causing lottsa the hot money to flow into houses and other "real assets" that the counterfeit paper can buy now.
Either way the execution of all the heads of the fed would be a good start to cleaning up. The heads should also be bronzed and put on display at the treasury as a warning. Also this would spur local tourism and make the dc grass roots economy better.
CAMACHO
" is the labor market"
the jobs sent to chindia.
Open trade equals race to the bottom
End of story
It's almost as if...fucking economics... isn't scientific at all...
Yeah printing money and lending to people with no job on terms even their lawyer doesn't understand articificially inflates prices.
Backstopping loans to people who are a cunt hair away from being classified as incorrigible morons so they can go to State University and major in Sociology and Chugging Coors Light tends to make tuition go up.
So as people who paid 35 k for their now 750k houses laugh all the way to the bank, taking more out of social security and medicaid than they ever kicked in...and as an essentially **parasitic** financial sector has robbed the futures to pay themselves now....
yeah turns out its tough to graduate, find a decent job, and buy a 2 br an hour outside the city.
and good luck saving for a house when in 2 years you're going to need the 5 k youve managed to save to pay for your increased healthcare insurance premiums.
Who here does not yet understand that Obamacare is essentially malware with a self-destruct code.
It is designed to completely destroy the private health insurance/ healthcare industry to replace it with what might fairly be called Medical Fascism or CronyCare - in 'single payer' form or not....
you, sure as shit, will pay more for less - and you'll like it or off to the Hope Camps with you.
Hedge accordingly, my friends.
I can dig it, but my philosophy is this: Cut doctors and medicines out of your life to the extent you know how to do that. The fear is that something happens but sometimes one must conquer such fears and just go for it. When I left home in the 1970's, my car insurance premium was raised to over $1000/yr. I was earning $2/hr. What did I do? I sold the car, bought a motorcycle and drove without insurance. Adapt or die...or, whine.
I'm gonna love watching you do your own prostate surgery.
I'll even hold the mirror.
Sorry, no prostate issues at all, unless total (multiple) orgasmic control counts. Maybe you can unload your scalpels on the internet.
haha thats exactly what im doing. just bought a ducati scrambler. on the tank cap are the words: "born free"
I'll turn 62 in December. I've had health insurance all of two years (1997-98). Paid for doctors myself on the rare occasions I needed one, which, back in the 70s and 80s, was pretty normal. I recall that when I was 20 I saw a doc for a routine physical (for a job I think), who told me I needed ot lower my cholesterol and gave me a list of foods not to eat.
Being of Italian-Sicialian ancestry and noting the profusion of meats, pasta and cheeses on the list, I decided never to visit that particular ass-hole doctor again. Ate what I liked and was pretty healthy all my lfe.
I've been sick exactly ZERO times in the past twenty years. When I had insurance, I was unfortunate to have the only operation of my life, a hernia. The costs were outlandish and the co-pays were ridiculous as well, so I didn't even bother to pay them. I was hounded by creditors for various fees associated with that simple, one-hour operation for four years. This was 1998 and I think the cost of the whole shootin' match was around $10K.
Reason enough to stay away from doctors, hospitals, etc. and take care of myself. I pity anyone who is in poor health, not only for their health, but for the pain to their wallet.
Fuck the government and the health care scam. The recent findings by the WHO make it plain that the world is run by lunatics. Sure, processed meats cause cancer, which is absolute bullshit. Why don't they mention the chemtrails that cause all kinds of diseases? Why is it that you can't text while driving, but eating a McDonald's cheeseburger or drinking a Tim Horton's triple latte is perfectly OK?
Corporatism has ruined the middle class and they're coming for the rest of us. Anything that isn't nailed down or buried is at risk. YMMV. Truth.
Oh there are others suffering like me? That's comforting, sort of.
The worst problem by far are the colleges and universities. They charge $100K plus for degrees in communications and psycology and our government makes it happen by allowing them to finance such worthless dribble. They of course get all kinds of grants and scholarships to go along with the fiasco and by the end of the 4-5 years they are uneducated morons with no ability to do anything or make anything. The few engineers and technical degrees who do graduate are doing extremely well. The moral is that 90% of those who go to college get worthless degrees.
The second worst problem is our government but we have no one to blame but ourselves. Long ago we should have revolted and reset the entire system with a different set of safeguards but we deserve what we get.
The third problem is what passes as innovation and invention in our society. The biggest and fastest growing companies are advertizing firms that are worth less than nothing in a real world. Worse yet, all of them (Google, Facebook to name just a few) screw the little guy giving them no chance to start a small company, make something, hire 5-20 employees, and then sell it to the marketplace.
That is why 50% of 25 year olds are at home.
As with all things, this trend will continue until the average person figures it is better to grab a gun and revolt than to put up with the BS for another day.
The second worst problem is our government but we have no one to blame but ourselves. Long ago we should have revolted and reset the entire system with a different set of safeguards but we deserve what we get.
This is a fantasy. We are not to blame for what the victimizers have done, and there is no system that will stop thieves and murderers from taking power. It is the system itself that enables it.
But a revolt, think about what that means. How do you stop these things without massive bloodshed? Is it reasonable to expect that people will go right for the guns at the first sign of trouble? Or is it to be expected that people will go along to get along because nobody wants to commit mass murder?
That's why "the system" is so insidious.
Why don't they work? Simple answer. They don't have to.
21? Haven't done shit for 2 years but work 1 part time job that you quit because "they didn't treat you nice?"
GTFO of my house kiddo.
Downvoted by a parent without a backbone...or a 21 year old with a profession on linked in that says "twitch streamer" that still lives with his parents, does nothing to contribute, and blames all his problems on the federal reserve.
At least todays 21 year olds know how old they are and don't have to fake it.
Tough love is called child neglect, today. Necessity is the mother of invention. Most people will make it if they try.
94 million adults out of the workforce. Millions more on "unemployment" on their way to join them. There are no ditches to dig. There are no burgers to flip that haven't been flipped. There are no jobs. People are victims of policies out of their control.
This is the fault of the people who own and "run the country".
Seven years of college down the drain.
Even more coming soon = FEAR THE FED.
George Bush admittedly turned over the reigns of addressing the financial crisis to the "experts". The FED/Banksters viewed Obama as a non-entity figure with no distinquishing characteristics as far as they were concerned.
BUT NOW THE WALL STREET CONNECTED/SERVING HILLARY CLINTON might be elected. To the extent that a President can impact domestic policy anymore with a fractured and dysfunctional Congress - this does not portend well for anyone other than the .01-1% and all parties that have benefited for the last eight years. I don't like the President, the FED, and Wall Street looking at the same goals to even a greater degree than has existed.
hillarys head on a pike will be a good indicator that we are working on our problems
banks job is to inflate the cost of living.
Their mission is to create scarcity where there is none.
Consider Ireland
240,000 empty houses yet we have a housing / rental crisis.
In reality we have a purchasing power crisis as the banks subtracted 21 billion euros from the economy last year.
The percentage in Europe is also 50% of 25 year olds living with parents. And in most EU countries they have FREE (or cheap) university education.
So, now what's the issue?
It's not fucking free you knob.
As a matter of fact, if you are an EU citizen, tuition in public post secondary schools IS FREE in most EU countries. You FAIL.
http://www.studyineurope.eu/tuition-fees
He means someone else pays...you know, like the invisible bunny.
I reckon what he is saying is that SOMEBODY is paying for the tuition, not the student but the taxpayers. I read that in Germany
the average medical doctor makes around $90,000, which is one of the reasons their medical costs are much more reasonable
than The States'. The reason the German doctors make quite a bit less than ours, and why Germany doesn't have a dearth of
general practitioners, is because tuition is fully covered; thus the doctors don't get encumbered by onerous debt; therefore they
do not need to make an inflated salary to service student loan debt.
In the US, the typical liabilty insurance costs alone for doctors are from $20k to $80k a YEAR. So a doctor simply can't make just $90k a year. That said, the insurance rates are dropping becasue of reforms to the tort system and caps on settlements are substantailly reducing claims.
inflated salary or push drugs?
Ah, yes ... Utopia!!
Nothing, I repeat, NOTHING is free! It is either built into the price or someone else is paying for it. In this case, the taxpayers are paying. Basic life lesson.
Of course someone pays. But it's not the students. THE ARTICLE is about STUDENT DEBT, not about the system.
I also laugh when people tell me things like Europe, and especially Scandinavia, has the highest standard of living. They have the highest SOCIALIZED standard of living, but the people themselves are economically poor.
Sales taxes (VAT) in Europe range from a low of 19% to 25%, on top of products that are already double the cost as in the US.
The catch with the free college in Europe thing is you need to be smart enough to get in. That isn't going to fly in the US. They will demand everyone get a chance at an education. You can keep changing majors and go to school until you are retirement age. What a gig that will be.
Mom and Dad dreaming of walking around naked for once. Not happening.
By the time your kids 25, no one should be doing that.
No one. It's inside, not on the beach. Now we got a problem.
When are we going to stop using the word "recovery"? When are we going to stop quoting "economists"?
And half of the ZH posters are those very kids! The other half are the oldsters.
Ya know, a good start to create job openings would be to fire EVERYONE at the SEC, the FDIC, the CIA, the NSA, the FBI and the DIA.
http://wallstreetonparade.com/wp-content/uploads/2015/10/CREDO-Action-Billboard-Truck-to-Dump-Mary-Jo-White-at-SEC.jpg
Residential energy use in both Ireland and the UK continues to decline dramatically....
The surplus energy is vented via 0% interest cars and jet fuel mercantalism.
Aaaaaand this is the same St. Louis Fed that is about to be blown sky high in a fire-induced nuke blast? Gotcha.
Let's see...
[1] Half are living at home
[2] Half the population is male.
Ergo, odds are that...
It's the guys who are living at home. Could it be because...
A. Old-school Mom does a better job with the laundry and cooking, than the new-school feminists?
B. Sexual relief from free online porn is safer, faster and perhaps even better than from modern dates? ;-)
C. Modern romance (based of spend, spend, spend, treat me like a princess) is not all it's cracked up to be?
E.g. Woman (Mrs Spitz): "Mark, I've noticed that you don't bring me flowers anymore, since we've been married". Man (Mr. Swallows): "Well, Rachel, I've noticed that you don't be me blowjobs since we've been married."
Just guessing. And indulging in some dark humor for dark times.
Young men, for their entire lives, have been told how the world would be a better place if women were running it.
So pass the Doritos and controller #2 and let's watch the fucker burn.
We are a generation of men raised by women.
Ok Ok....lets be real.
All women CEO's/Politicians/Federal Reserve Chair(wo)man right now are men. Case in point: Old Yellen. Another case in point: Mary Jo White. These are men dressed as women.
And Carly Fiorina is the coldest bitch alive.
So maybe if everyday women, not those bent on power, or devils-in-mens-clothing crossdressers, did in fact 'run things'....well at least cooked goods would be better. Oh and fast food would be banned, permanently, along with high heels. There definitely wouldnt be war, just stern negotiations. Makeup would be subsidized free. Govermnet military spending would shift to child care services and glyphosate-free tampon tech.
Hmm itd be a strange world for sure.
One more thing. How can those guys afford a divorce with all that student debt?
Negative alimony?
"individuals at the beginning of their careers often need more time to transition into the labor market." You mean find a job?
That was true for me and most everybody else 40+ years ago (and way further back). Is this supposed to be some profound new concept?
A great quote from the warehouse manager when I was a kid: "This aint a career, its a job".
I am so Glad the Fed understands everything, and can explain it to us Dumb Americans /s
No doubt they've been born into the most f*cked up situation imaginable (Fed induced).
But I'd feel just a tad more sympathetic if they didn't have to have all the LATEST F*CKING iphones and every other F*CKING mobile networking device known to man. And have it immediately, if not sooner.
Fiat money is why. They bought your soul with a lie. Welcome to the world Satan was banished to. Got God?
Jesus fucking tap dancing christ, even me bairns understand this game, this is nigh on the end of the 'Exponential Function'.
This is the eventual effect of P+I when they never printed the I?? How fucking hard is that to understand if this daft cunt called Mixy knows, and his two kids do? Even me fucking wife calls it an imagination in me mind?? Conspiracy theory you see..
There comes a point when the interest payments reach the same point as paying for services and general welfare, now wave your hands bitchez, eat your peas and soak it up, because that is right where we are.
Your 'Wedge' should be backed by something, anything, even fucking sea shells would do it, but its not, its backed just like the Bank of England, and Japan, by unicorns and giants farts living either under a fucking bridge, or up a fucking beanstalk. And even more funny, 'Full Faith And Credit'? Fuck off and talk sense.
This isnt science folks, if these daft cunts run it, and we can call them owt, whos the daft cunt?
Exponential Function, meet fan.
Stupid cunts
;-)
I'll take two of whatever you are on.
Made you think and take the time to reply you daft cunt.
Didnt it?
Think about it pankowboy...
See how easy it is if your vocabulary meets the standard of those reading it?
No offense meant mind, just proving once again, words mean something. Gets you going so to say.
:-)
+1000
What is happening is a transfer of remaining purchasing power from the individual toward the connected corporate sector ( cars and Planes)
In Ireland we are seeing a implosion of local domestic energy use yet the Dublin London air route is again becoming the busiest short haul route in the world.
The data is very clear
It's a simple transfer of energy.
Where does mass immigration fit in to all of this? Ireland is the goto country for immigrants.
To all the 25-year olds out there reading this from their parents' basement, all we can add is that these are actually all correct. There is just one thing left to add: for all of the above you can thank, who else, the Fed for blowing the biggest debt-funded asset bubble in history.
Housing bubble was not blown by the FED. The private banking system prefers property for hypothecation. Property is a fungible asset and has lines of law, especially law connection to FDIC insurance protection. This law connection to FDIC was made when GLB act broke Glass Steagall. Insurance and Wall Street Banks then created mortgage backed securities. First hypothecators, or first banks where mortgage was created, could then off load new mortgage to TBTF banks which had a SPV operation, and said SPV could rehypothecate mortgages into MBS.
Where is the FED in this arrangement for first hypothecations at banks, then second hypothecations and tranching at TBTF banks? Only later, as a response to the system, did the FED buy up MBS with QE money.
70% of America's credit driven money suppy is based on FIRE, or finance insurance and real estate. ALL PRIVATE CREDIT BANKS make loans first and find reserves later. Reserves are exchanged on the overnight market, of which FED is a part. Overnight market is a marketplace only for private banks that are part of FED system. This is the place where they PRICE RESERVES. Reserves are not volume controlled but instead price controlled with interest rates.
Banks make loans first and find reserves later, sometimes up to the last minute. Private banks can always find reserves from the FED at the last minute if they cannot find reserves on the overnight market. However, the FED always makes sure the overnight market is controlled by prices using repos and reverse repos - in other words, making sure reserves are there as needed. THERE HAS NEVER BEEN A BOND COLLAPSE, because of FED overnight manipulations of the overnight market.
OK. This is not just semantics. It must be understood that FED responds to private banker pressure, meaning the real whip hand is TBTF banks, and the overall private banking system. Whip hand is not government, it is not the FED, it is TBTF banks and Corporate control of money power.
Banks make mortgages to hypothecate new debtors to then make new credit. The FED is a banker advocate, part of the bank system, and a corporate entity. The FED does the bidding of its members, who are TBTF banks and other unseen stock owners. Original owners of FED are the many banking families that engaged criminal act of starting FED in 1912 or so, and yes, many are Jewish families as ferreted out by Eustace Mullins via congressional record. This is a matter of facts and is not opinion.
QE was to buy bad mortgage paper and crap MBS CREATED BY PRIVATE BANKS. This buying up of bad paper re-capitalized banks. The paper went bad due to systemic collapse, as private bank system is unstable and based on fraud, and periodically needs to be bailed. Everytime it is bailed, it transfers yet more wealth from the real transaction ecoomy.
QE is a liquidity swap/exchange where new FED keyboard money buys financial assets held by private banks. This expands FED balance sheet by transferring paper from banks, and in the opposite direction CASH is funneled to said banks. Once the Cash arrives at the banks, it goes into their reserve accounts.
Today, the FED pays interest on CASH held in bank reserve loops, even though cash is supposed to not bear interest.
The FED is not tip of pyramid, but is an actor in private banking corporate schemes.
The ultimate solution is to recognize that money has a true nature, and that is law. Credit hypothecated into existence based on grabbing fungible property is a scheme to make money from money, and hence is usurious rent scheme. Rents are attempts at making a free lunch, and thus rents are transfers from the produtive to the unproductive. Keyboard creation of new credit money at banks in no way represents real wealth production, and hence banker credit shemes are predatory to their core.
Prvate credit money systems, especially those based on debt hyypothecations, need to be shit canned. They were born of fraud and are still fraud, and no amount of "reform" can fix them as they were criminal at genesis. Why the hell should private individuals and corporations get usury for owning legal money power? Money is part of the commons as it is used by everybody to trade and price their outputs.
Focusing on the FED as the problem ignores the PRICING SYSTEM, it ignores the COST SYSTEM, it ignores FISCAL POLICY, and it ignores MONETARY POLICY. All of these systems should have lines of law to allow true lowest costs.
Private credit as Monetary policy does not work with FED at tip of pyramid. Private Banks, and to a lesser extent - money markets are the head of monetary pyramid.
Fed was a creation of private banks and private families who had money power, who then got their way for a perpetual free lunch and Oligarchy Control. MOney powers did this by usurping law to their benefit. They continue to usurp the law and hypnotize populace to think they are usuful. Hypnosis is part of the action of a parasite, to then make host think its parasite is useful.
www.sovereignmoney.eu
excellent comment, saved. i will share with those who will actually understand it.
one can also draw a very important conclusion from your well elucidated observations. QE will never end. since so much of the collateral for all the debt that has been whipped into existence from the ether is real estate, and real estate to some extent is driven by the bubbles in energy, tech, biotech, finance, insurance, etc, the fed must at all costs avoid any slowdown at all in those markets, lest a deflationary and self perpetuating vortex of deflation and bankruptcy follow, wiping out housing; tech, insurance, financial companies; automakers; university tuition; commodities. essentially everything.
which leaves us with
1) hyperinflation
2) war
3) debt jubilee
4) am i missing something?
and then the end result is the same anyway.
Amen Brother! Excellent read.
Good stuff MEFO. Explained so that even a cave man can understand the scam.
a lot of these are southern states, maybe they just want to stay close to their husbands and wives, but thats not the real reason, the real reason is the weather
states with low cost of living
hey Tylers - how about another story on the Comer case - news of which is virtually banned in Canada...
http://www.globalresearch.ca/the-case-to-reinstate-the-bank-of-canada/54...
There are ways to deliver a quality low cost education to children, and to not have property bubble up in price.
Canada's experience is instructive, which is why Comer case is important:
A brief overview of Canada's sovereign money system:
The nature of money means far more than Communism or Capitalism. Canada’s Sovereign money system 38-74.
From 1938 to 1974 Canada had little to no price inflation. Canada had a quasi- Sovereign money system, where their money pumped into channels and was non usurious. Private Banks were part of Canada’s mixed money supply. However, private credit emission was a small component, and was held to four year loans only, and limited to 6%. Further, private banks were jawboned by Bank of Canada (BOC) to keep them from emitting bad debts.
BOC became a crown bank in 1938 and was initially was privately incorporated in 1935. A crown bank means that BOC had its stocks fully owned in trust by Ministry of Finance (MOF).
In 1945, private banknotes are ordered removed from circulation. Private Banks emit credit, and their banknotes then represent high cost interest bearing loans. After 1945 only bills issued by bank of Canada were allowed. This issuance of BOC bills represents seigniorage and profits received by government and thus lowered taxes. Seigniorage should not go to rent seeking private banking corporations.
After first seigniorage, then old bills are replaced with new, and no additional inflation of money supply is necessary.
BOC after 1938 was a State Bank that emitted debt free money. The downside is that this money power was not protected by good law, and ultimately BOC was returned to a debt spreading type of bank in 1974. This conversion was at behest of Bank of International Settlements (BIS). There was also coercion and bribery against parliament to convert BOC in 74. Thus 1974 is the date that Canada became subordinated to private money power.
Bank of Canada was structured as follows: Shares are held in a Trust by MOF, Minister of Finance. In other words, BOC is incorporated as a company with shares, however the shares are wholly owned. Said shares are put in a trust, and MOF is trustee. It would be interesting to see what the trust specifies as to the actions of trustees.
Prior to 1974 MOF would tell Governor of BOC to create money debt free. This isn’t a real clean way to make debt free, and is still a corporate structure, which is why it was co-opted.
This debt free would be injected into the commons. Commons, when they are used by everybody, has a multiplying effect, where every dollar in creates much more than a dollar out. Think clean water, it makes everybody healthy so they can then labor and create. Not clean water? Then people get sick, and you have economic collapse.
Debt Free is recalled by taxes, and then is re-spent by government, so it flows in a loop that has no interest. In this way, money becomes a tool that the people use to labor with and create wealth. It has zero cost, and hence production chain does not have to add price to cover usury. This type of money can be saved to then be used to form small business, so it is entrepreneurial.
Canada’s population in 1939 was only 12 million people, in 74 it was 23 million. It is astonishing what Canada was able to do with this small population and a sovereign money system.
These things netted out of this system, the time period of 38-74:
1)
Beginning in WW2, sovereign money funded war effort without debt. Canada contributed greatly to WW2 effort. By end of WW2, RCN was fifth largest navy in world.
2)
Free Education for returning WW2 Veterans. Improving labor in this way improves productivity. Public school infrastructure was improved in the same way as hospitals, by direct injection of debt free money. This then lowered costs for schools and hospitals.
3)
Business loans. Business loans allows small to medium enterprises to form, thus increasing efficiencies. Small business are almost always more efficient than large business.
4)
Land Grants. (Land Grants are a way of keeping land from being grabbed by monopoly forces. This was easy in Canada given the amount of land available.)
5)
St Lawrence Seaway was dredged and improved and added locks. (Note that Canada spends into their commons, as all governments should.) This is something like Panama Canal and a significant engineering feat. It allowed an inland seaway to get from Montreal and Lake Ontario.
6)
Welland Canal is another waterway link between Lake Ontario and Lake Erie. It is eight locks and lifts ships 326 feet over the Niagra Escarpment.
7)
Trans Canada Highway was built, about 4,000 miles
8)
Universal Health Care. Free health care. Since economy was efficient, health care could be afforded. (Note: the U.S. private health care system is 3X more expensive than Japan’s. Only after 1974 did Canada’s health care system go bad.)
9)
Pensions and Direct Injections
a.
This is Social Credit Theory similar to that advocated by Major C.H. Douglas. These direct injects are debt free money being collected in taxes, and then spent (injected) back down into the base of the population. This creates a pumping action, and the money goes on to create consumption and wealth. It also overcomes losses from waste in industry, so labor can buy their output. (Wages never equal the actual value of production as waste and overhead is captured in prices.) Canada may not have not understood this action, that injections are proper economics and needed, as shown by Gap theory. They injected as a response to the Depression.
b.
Family Allowances: This is another direct injection, usually for kids up to age 16, about $5 in the 1960’s money, per month.
10)
Private Banks are Restricted to four year loans only.
a.
This is private creation of credit by banking corporations. A four year loan at 6% interest means that the interest does not go exponential. Note: In 1974 BIS coerced and removed these restrictions, so private Banker could make profits. His profits are usurious and also change the nature of Canada’s money supply. Canada’s money supply ratio then shifts, making it predominantly private credit and less debt free. This is the beginning of the end for Canada.
The nature of money means far more than Communism of Capitalism. Communism vs Capitalism is dialectic. This dialectic means people have their attention diverted away from money, its creation, and how a country’s wealth vectors.
In 1974 Debt stood at only 18 Billion, easily supported by a Continental Country of 23 million people.
Runaway inflation in late 1970 was created by Bankers, especially since the money had changed to become private credit. After 1974 Governor of Bank of Canada only controls the overnight rate for reserves. Control of overnight reserves is control of the price of Credit, and in no way allows volume and path control of wealth type law money (debt free).
How did Canada provide for mortgages?
Answer: They used trusts, which were similar to Savings and Loans in the U.S. This would be intermediated money that already exists. A saver would loan their savings to a new debtor. In this way, the population held debt instruments against each other. Debts were NOT held by banks for housing. Since inflation was low, trust would offer loans at very low rates in the 1 to 3 percent range. Retirees used their savings as income, as young people paid the loans off. Trust loans would not be for 30 years, and had to be renegotiated periodically. CD’s were for 5 years.
After 74 private banks offered loans structured in such a way as it was low down payment, but long term. The entry point was all usury up front in the loan, and hence borrower would be forever in debt. This then pushed housing costs in asset inflation, and also destroyed Trust intermediated money banking model.
When trusts collapsed, bankers swooped in and bought up remnants, which also happened with Savings and Loans in U.S.
Asset backed commercial paper. This is working capital used by business in order to operate. It is usually issued by non-bank entities and is intermediated EXISTING money, not new credit.
These sort of financial entities, shadow banks were usurped after 74, so savers were then disallowed access to have “capital” returns from industry. Instead returns of productivity then went to bankers, who created new credit as loans. Banksters now use credit default swaps to insure toxic asset backed short term loans. Therefore, FIRE (finance insurance and real estate) have usurped the money supply.
There are many proper ways to volume and channel control an economy. No one is talking about these methods:
1)
Sovereign money as in Canada’s model
2)
Self-funding loans, which go into inelastic markets, to then create wealth, to then pay off their loan over time.
3)
Rent taxes. Free lunch should be taxed. Why the giveaways and welfare to the rich? Income should be untaxed.
4)
Interest free loans to municipalities, so they can then inject into commons. This money also goes on to be used for local transactions, savings, and is used to pay off private debts.
5)
If one must have credit emitting banks, then they should be modeled on Sparkassen Municipal Banks of Germany. These banks return their profits and their debt instruments stay local. Their costs are low because they are public.
Sorry, I can't read only write.
You've sold me. But I can see how some would twist this around into "nationalizing the banking system" and their heads would explode
at the thoughts of socialism run amuck. Another contingent would decry the "damage" done to the economy, essentially eviscerating
the high end goods market (although only temporarily I'm sure) for yachts, Hampton mansions, Ferraris, and the like. Anti-(private)-Bankites
are not well received in some circles. But sign me up, this all sounds prudent.
Floating money (debt free) as issued by Treasury first goes into modes of production. After it cycles out of that upon respending it is floating in money supply. It has no debt instrument to recall it. If there are private debts that are built up by private bankers, it can pay them down. In other words it puts the extra money into the economy needed to pay debts, and it channels to increase productivity.
The only way to recall floating money is to tax it out of the population (or to pay private debts as just mentioned).
Therefore, it becomes a transaction tool so people can trade their output at low cost. Additionally, BANKS ONLY INTERMEDIATE EXISTING MONEY...they are disallowed from making private credit.
This means that individuals hold debts against their neighbors, not banks.
Banks remain private and work for fees, but cannot make money. This is how people erroneously think banking works now. It doesn't ...banks create the credit the economy uses by hypothecations.
In a sovereign money system, people have the money power and hold credits and debts with each other, which is in exact alignment with evolutionary history.
Since money becomes wealth instead of credit, there are no future costs, and also there are no dominoes of counter parties causing systemic collapse.
People who twist the idea of sovereign money into some sort of nationalizing the banking system are confused. Banks are private, but the money is nationalized. All money is Treasury money and if it is issued outside of legal limits, then the issuers go to jail. This would be easy to see and audit, unlike private credit schemes which are done in back rooms with fraud as an objective.
During Greenback era, the volume of greenbacks issued never exceeded law. Can that be said of banker credit money?
So essentially the aim would be to nationalize the fractional reserve aspect, while allowing the bank to serve as a utility.
I'm assuming something akin to Glass-Stegall would have to be implemented, for this to work. It sounds great, but the
cynic in me would say that the whole shooting match would have to come down for there to be enough of an impetus to
enact. Proactivity isn't likely considering how lucrative the status quo is for TPTB.
So essentially the aim would be to nationalize the fractional reserve aspect, while allowing the bank to serve as a utility.
In a sovereign money system, the money is first issued by Treasury into something that improves the commons. For example, in Canda they built canals, which then allowed everybody to move goods and services more efficienty.
Once that money pays labor, it then goes into peoples savings accounts. From there people pool their money into trusts. A banker then finds debtors who want to borrow other people's pooled savings. The banker is merely an agent allowing savers (creditors) to find debtors.
Banker agent gets a fee for his service. Banker works for both savers and debtors as their agent, so banker is not really a utilty. Bank is a vault, or place where people can put their wealth money. People pay banker to store their money safely, and to act as their agent.
Note that in this system any debts that accrue are against money that already exists, and hence debt instrument can be paid.
Canadians were able to pay their debts, and do productive things with their sovereign money system.
After the money supply is full, then any further additions are inflationary. Government then taxes, and aims its fiscal policy at rents. Rents are unearned income and something like cancer. Without rent taxes, any system goes off kilter, including a sovereign system.
In our credit money system, rent seekers are allowed to control government and extract their free lunch - hence everything today is upside down alice in wonderland type of world. Today, the rent seekers will try to convince everybody that their wealth was gotten fairly and they are necessary to the production process.
They are not useful, they are parasites. A simple example, in the U.S. medical is 2X Germany and 3X Japan. Ergo, rents in U.S. Medical system are at east 200 percent, driving up costs to 2X above lowest cost value. Finance also pretends that it is necessary, it is not. Finance takes a free lunch, and passes on its costs as high prices.
These high prices then limits access to goods and services, especially for those who only have their labor to sell. Young millenials only have labor value, they have had no time to accrue assetts.
In a sovereign system, Say's law is operative. There is circular flow from producers to producers, without an invisible hand dipping in and taking.
In a credit money system, as we have today, the invisible hand is a loop of finance where debt instruments and finance paper circulates and said paper is called "assets."
Renaming something as assets is another trick of hypnotic suggestion, to then confuse the minds of sheeple.
Debt instruments are assets in a credit money system, only their nature is to be enforced by police state, and suck future life blood and energy.
Credit as money has no time value, it was created on a keyboard during hypothecation event. Real money, as in a sovereign money system does have time value, so when one is loaning out their savings, then something can be expected back - hence it is not usury, especially since money system is made sure to be full and have stable prices.
10-4
it would be higher if more houses had basements.
double basements?
Short answer, jobs in general with reduced pay and you have to compete with H1Bs.
Musical job chairs. Hundreds more jobs shipped off to India once the music stops.
And the government and corporate cronies will tell you they need H1Bs because no one is qualified.
Disenfranchised youth must realize that Ronald Reagan, Alan Greenspan, Robert Rubin, Bill Clinton, and JPMorgan, et cetera, did this to their futures intentionally. Today, William Jefferson Clinton has $400 million socked away thanks to you. Ronald Reagan received medals of honour, and dedications in the name of God Allmighty just for fucking your collective lives up permanently. Alan Greenspan is still being lauded today for his masterful skullduggery with regard to bleeding your lives dry via the rigged 'economy' that he made so you could worship his anal sadistic personality, and strive to become like him some day.
What you need to understand is that people like Alan Greenspan think you, and your family, were placed on this planet Earth to be systematically put to work as a slave for Alan Greenspan, and the Jewish Oligarchy that he is a member of. Robert Rubin thinks the same way as Greenspan, and likely screwed you even more than we realize today.
Good luck with that, eh.
Uh, 1999, cited in the article as the beginning point of this- was ten years after Ronald Reagan left office. Even Bill Clinton was almost done.
I'd really like to see how much of the 1999 doubling occured since 2009, specifically January 20.
Ronald Reagan received medals of honour, and dedications in the name of God Allmighty just for fucking your collective lives up permanently
Who wants to bet you got downvoted for invoking the name of the holiest of republican presidents. Yes, people Reagan screwed you too.
Thou shalt not impugn Saint Ron
http://www.maxkeiser.com/2013/04/how-the-legacy-of-thatcher-and-reagan-made-the-2008-financial-crisis-inevitable/
The smart enough to not join the military but to lazy to slop poison food (lol) for lazy food stamp wielding other then 25yr olds.
The "extended family" is now in vogue in the USSA...Only in Amerika!!
Nice jobs, US Slavemasters. The slaves are starting to figure out your scams.
People who used to mock basement dwellers are going to wish they had a nice warm basement to live in pretty soon. All that paper "wealth", what good is it now?
you have to factor out the asian population where it is still fairly common for kids to stay home until the get married. you have to factor out the bias that this is somehow a wrong thing for family to support family. you can fault these dumb kids for not offering whatever sevices they can offer for money from good head to computer repair, ebay merchant, flea market tycoon, landscape artist, nude maid, and the ever maddening starving artist.
My response their lazy, kick them out on the street they will get motivated quick!
I can't speak for the statistics,but I can tell you why my 30 year old stepdaughter lives with us. She is a lazy piece of shit.Never looked for a job.Period. We provide her with everything she needs,and her friends provide her with everyhing she wants. Why work when you have free internet,phone,satalite TV,hot water,food,clothes washer and dryer,flat screen TV,and everything else that makes life comfortable.At someone elses expense,of course. I would have booted her lazy ass out years ago,but her mommy won't allow it. I think it is time I booted MYSELF out,and quit providing for them both.
i told my wife i would prefer to have a two room waterside shack with a high speed internet connection, good weed, a great stereo system and a nice young sweet ho to spend one day a week with me. once she realized i was serious she calmed down a lot.
haha lol! I'm only missing the sweet ho...
I'm planning to join you guys. I never ran cable to the kids rooms and told them they cannot run it. There is spotty internet. Don't provide too comfy of a place.
It's brutal out there Gladiator. Wages are low and good jobs are scarce. My nephews all have degrees and are not lazy. Their salaries suck considering their age and education. Jobs are available in the medical area at various skill levels but employers work people very hard. Your stepdaughter certainly knows all this and maybe has just given up.
Can't give up until you have started trying.
Yep. You are the donkey of the family.
Let them be homeless for two years with non of the above, any lowing paying crap job will suffice, trust me been there done that. Know I own my own place & have all of the above.
Doesn't do anything either I suppose. Cook? Clean? The least someone can do is make themselves useful around the house.
Good for them. They are doing this out of self preservation. What else should they do, go out and get married so that wifey can take the kids and 1/2 of everything for life. F THAT!
Go Your own way.
MGTOWHQ
Fallacy of the excluded middle. Find roomies.
lots of opportunities outside the US, get a one way ticket
For answers to legitimate questions, one must consult the experts: https://www.youtube.com/watch?v=rsL6mKxtOlQ
Spoiled wimpy brats...educated under substandard (compared to the rest of the world..) American educational system. Add the additional brainwashing by the Mainstream Media to top it off...