Homeowner equity is lowest since 1945

[patientlywaiting]

That means a lot. Americans have been borrowing against their houses to buy a standard of living higher than they could afford. Globalization in the form or cheap Chinese and a previously strong currency allowed us to feel flush.

What people forget is that housing was NOT an ATM. That implies cash in your account. Equity loans were credit cards that now need to be paid back.

As a nation, we’ll have to get used to a lower standard of living. We’ll have to sell some of the family jewels to foreigners to stay solvent.

This is the wealth effect in reverse. The poverty effect?

I’m better off than the average person. But I’m feeling pretty depressed about the state of our country right now. That feeling sucks especially if you have to step outside of our borders.

[bsrsharma]

All this discussion is about private wealth (or lack of it). Publicly, we are $9 Trillion in debt and $50 Trillion in unfunded entitlements. It is hard to understand why some people are so keen to run for national offices!

[bsrsharma]

All this discussion is about private wealth (or lack of it). Publicly, we are $9 Trillion in debt and $50 Trillion in unfunded entitlements. It is hard to understand why some people are so keen to run for national offices!

[bsrsharma]

All this discussion is about private wealth (or lack of it). Publicly, we are $9 Trillion in debt and $50 Trillion in unfunded entitlements. It is hard to understand why some people are so keen to run for national offices!

[bsrsharma]

All this discussion is about private wealth (or lack of it). Publicly, we are $9 Trillion in debt and $50 Trillion in unfunded entitlements. It is hard to understand why some people are so keen to run for national offices!

[bsrsharma]

All this discussion is about private wealth (or lack of it). Publicly, we are $9 Trillion in debt and $50 Trillion in unfunded entitlements. It is hard to understand why some people are so keen to run for national offices!

[cr]

It is hard to understand why some people are so keen to run for national offices!

Unless you’re Ron Paul who actually wants to make governemnt worth its weight in a gold colored liquid we flush down the toilet.

[cr]

It is hard to understand why some people are so keen to run for national offices!

Unless you’re Ron Paul who actually wants to make governemnt worth its weight in a gold colored liquid we flush down the toilet.

[cr]

It is hard to understand why some people are so keen to run for national offices!

Unless you’re Ron Paul who actually wants to make governemnt worth its weight in a gold colored liquid we flush down the toilet.

[cr]

It is hard to understand why some people are so keen to run for national offices!

Unless you’re Ron Paul who actually wants to make governemnt worth its weight in a gold colored liquid we flush down the toilet.

[cr]

It is hard to understand why some people are so keen to run for national offices!

Unless you’re Ron Paul who actually wants to make governemnt worth its weight in a gold colored liquid we flush down the toilet.

[Eugene]

Americans have been borrowing against their houses to buy a standard of living higher than they could afford. Globalization in the form or cheap Chinese and a previously strong currency allowed us to feel flush.

That is exactly the point.

United States have been losing goods-producing jobs at an accelerating rate since the time Reagan was the president.

When you quit your job, it makes you poorer. When you quit your job and start living off credit cards, you can feel richer but at some point you will have to pay. Even if you declare bankruptcy and your debt is wiped, you’ll have to cut down on spending.

United States have been increasingly living off credit cards for 25 years. Increased spending came at the expense of growing debt, which was masked by apparent increase in equity.

Don’t blame people treating their homes as ATMs. They just do what they must to survive. Don’t blame globalization, either. In today’s globalized world, Germany and Sweden manage to export more than they import. Italian trade deficit is minimal. Living off credit cards seems to be an English-speaking phenomenon (US, UK, Australia).

[Eugene]

Americans have been borrowing against their houses to buy a standard of living higher than they could afford. Globalization in the form or cheap Chinese and a previously strong currency allowed us to feel flush.

That is exactly the point.

United States have been losing goods-producing jobs at an accelerating rate since the time Reagan was the president.

When you quit your job, it makes you poorer. When you quit your job and start living off credit cards, you can feel richer but at some point you will have to pay. Even if you declare bankruptcy and your debt is wiped, you’ll have to cut down on spending.

United States have been increasingly living off credit cards for 25 years. Increased spending came at the expense of growing debt, which was masked by apparent increase in equity.

Don’t blame people treating their homes as ATMs. They just do what they must to survive. Don’t blame globalization, either. In today’s globalized world, Germany and Sweden manage to export more than they import. Italian trade deficit is minimal. Living off credit cards seems to be an English-speaking phenomenon (US, UK, Australia).

[Eugene]

Americans have been borrowing against their houses to buy a standard of living higher than they could afford. Globalization in the form or cheap Chinese and a previously strong currency allowed us to feel flush.

That is exactly the point.

United States have been losing goods-producing jobs at an accelerating rate since the time Reagan was the president.

When you quit your job, it makes you poorer. When you quit your job and start living off credit cards, you can feel richer but at some point you will have to pay. Even if you declare bankruptcy and your debt is wiped, you’ll have to cut down on spending.

United States have been increasingly living off credit cards for 25 years. Increased spending came at the expense of growing debt, which was masked by apparent increase in equity.

Don’t blame people treating their homes as ATMs. They just do what they must to survive. Don’t blame globalization, either. In today’s globalized world, Germany and Sweden manage to export more than they import. Italian trade deficit is minimal. Living off credit cards seems to be an English-speaking phenomenon (US, UK, Australia).

[Eugene]

Americans have been borrowing against their houses to buy a standard of living higher than they could afford. Globalization in the form or cheap Chinese and a previously strong currency allowed us to feel flush.

That is exactly the point.

United States have been losing goods-producing jobs at an accelerating rate since the time Reagan was the president.

When you quit your job, it makes you poorer. When you quit your job and start living off credit cards, you can feel richer but at some point you will have to pay. Even if you declare bankruptcy and your debt is wiped, you’ll have to cut down on spending.

United States have been increasingly living off credit cards for 25 years. Increased spending came at the expense of growing debt, which was masked by apparent increase in equity.

Don’t blame people treating their homes as ATMs. They just do what they must to survive. Don’t blame globalization, either. In today’s globalized world, Germany and Sweden manage to export more than they import. Italian trade deficit is minimal. Living off credit cards seems to be an English-speaking phenomenon (US, UK, Australia).

[Author]

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