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Great news for young people? Only if they have a job with good pay. On the one hand, they are faced with lower housing prices. On the other hand, they don't have jobs with which to afford housing. They...
View ArticleThanks to Alan Greenspan and Robert Rubin for Avoiding an Intergenerational War
Makes sense. In their immaculate wisdom, masters of the universe like Alan Greenspan and Robert Rubin anticipated the coming intergenerational war and took action to avoid it by allowing a housing...
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[b]Makes sense. In their immaculate wisdom, masters of the universe like Alan Greenspan and Robert Rubin anticipated the coming intergenerational war and took action to avoid it by allowing a housing...
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Most of the people who first bought homes during the bubble - say 2002-2007 - were probably on the young side. Older people who had already entered the market before then did not lose, since prices are...
View Articlestill unclear why housing is considered wealth...
I have future housing costs. I can hedge those costs by purchasing a house. If the house goes up, implied costs go up, but I hedged by buying a house. No net wealth there. Somewhat of a transfer from...
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[quote]They might prefer another scenario: a better economy with higher housing prices.[/quote] How about a better economy, but without housing bubbles & inflated housing prices, period? Housing...
View ArticleMortgages are much harder to get
The problem with this thesis is that younger workers have higher and higher student loans, lots of debt, worse jobs, and they face much stricter mortgage qualifications than pre-crash. So if you are a...
View ArticleAnd, more importantly, they now know the importance of suitable investments.
"In fact this was great news for young people in terms of their ability to buy homes." Those paying attention also know now why the high leverage and lack of diversification in housing makes this an...
View Articlemissing a point
I agree with most of the comments that find your post missing some very important points. I certainly think that you were trying to make a serious point but clothed it a general mischaracterization. It...
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I took the point of this whole thing to be that it's not about young vs. old... it's about average people vs. well off people. This seems to be a running theme these days to try and change the...
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Most of the young that are buying houses are mini-Romneys, with well-off parents financing the mortgages (in various forms). I can't cite any data to support this off-hand, it's merely an observation...
View ArticleBut the cost of renting is rising
And we read stories like the first one up when I typed in "investors buying homes." From June 28, 2012, Bay Citizen: "Investors buy nearly half of Oakland's foreclosed homes." - Rachel
View Articlelower house prices bad for young inheritors
Oh no, because of a lot of young people stand to inherit vast capital gains as a windfall from their parents and other relatives. Thus the absurd popularity of the abolition of the inheritance windfall...
View ArticleEloquent NYT Sunday editorial on ripe-to-cut tax break spending
http://www.nytimes.com/2013/03/17/opinion/sunday/the-real-spending-problem.html?hp of course, unless this kind of reporting gets out of the editorial pages, and into the the sections of the paper,...
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[b]Blissex[/b] wrote, [quote]They are good news actually for everybody, because houses are like cars a consumption item, even if so many affluent rentiers think they are "investments".[/quote] Not...
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[b]pete[/b] wrote, [quote]No income, no real estate value. It is not wealth, it reflects wealth.[/quote] Absolutely. Land isn't "wealth" in the sense that land is not accumulated capital: the land...
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