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The median family income, according to the 2004 Census Bureau is $51K. My bet is that for every vulture with $500K saved up, there are 300,000 people below the median wage scared to death of their ARM, HELOC, and credit card payments going up.
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Again, it all depends on the person.
So the majority of people don't make enough money to actually be able to afford some luxuries. Yes, that stinks - but that's life. I don't recall being given a handbook saying one day I will be able to afford a home, a yacht, a big HD TV, or whatever you want to fill the blank with.
If you flip burgers, and your combined yearly income is $51,000 - then yeah, I'm sorry but you probably won't be able to afford a home in San Diego, or a lot of other luxuries. That's just my honest opinion.
There are a lot of people making a lot of money out there. Shoot, my first job paid way more then $51,000/year when I graduated school. I know single waitresses making more then that a year.
I think your 1:300,000 ratio is a bit off - my opinion.
Percentages don't always tell you everything. I fall into the "exotic" loan catagory with my interest only loan. Then again, I put 20% down and have stockpiles of cash in the bank to cover the rest. Yet, I'm still counted in the pool of "FB'ers with exotic loans."
I just don't think there is as much doom and gloom as people on these forums think.
People still buy stocks after that bubble burst - and quite a few people made a lot of money. Others learned there lessons, some didn't. Life goes on.
Not everyone is treading water burried in debt. Don't understimate the amount of people making huge amounts of money.
Just my .02.
