The housing gamble: What if home prices remained stagnant until 2020? 6 charts laying out the argument for stagnant or declining home prices for another 10 years. Peak in dual income households, home prices still inflated relative to incomes, Federal Reserve unable to hold mortgage rates low forever.
What would happen if home prices remain stagnant for another decade? It is hard to imagine that the cornerstone of the American dream would somehow become a bad investment for the next decade. For decades every generation was conditioned into believing that housing was the best investment a family could make. For many it provided […]
The new Gilded Age – The psychology behind the aspirational rich in America and how people allow banks to swindle their financial security away.
A couple of weeks ago a survey of the ultra-rich by Fidelity Investments showed that most of these millionaires did not feel rich unless they had $7.5 million. Keep in mind that one out of three Americans do not have one penny to their name, not even stashed in the beat up mattress. It is […]
No quantitative easing for oil – The Federal Reserve can digitally print money into existence but this does not create more oil. Federal Reserve has a comic book section?
The Federal Reserve continues to support a flawed banking system that has ignored the urgent calls for reform in spite of the greatest financial collapse since the Great Depression. Bankers and fellow politicians understand that each day that passes without serious reform allows one more day for the painful memories of 2007, 2008 and 2009 […]
The financial elixir that is falling home prices – Lower home prices good for the economy – Median U.S. home price down to $157,000 taking up 3 times the annual household income instead of the bubble peak of 5. Adding jobs while home prices move lower? Banks big winners when home prices remain inflated.
It is interesting that in the short-term horizon of our economy falling home prices are occurring while jobs are being added. The banking sector during the early days of the crisis made it abundantly clear that falling home prices would lead to economic collapse. Yet the opposite is occurring. Why? First, inflated home prices eat […]