[HarryBosch]

I may not watch all the trends but one trend that I’ve noticed is the growing popularity of the Dave Ramsey philosophy. I’ve also been on his web site and been amongst those forum participants. I see more and more people getting on the bandwagon of paying their debts off 100%, paying off their mortgages and planning to buy a house with the least amount of borrowed money.

I think that your average citizen, middle class America, doesn’t want to finance the American dream anymore. With lending already tightened and people getting smarter about not wanting to be a slave to the lender I think that demand for credit in general is going to decrease. With that in mind people will not want to pay the recently ridiculous high prices for houses and will not want ridiculous mortgages in the 300’s and 400’s of thousands that we saw during the last 10-15 years. Prices will continue to drop.

This is a paradigm shifting of values in America. A realization that having money in the bank is more important than behaving as if you had money in the bank.

But this realization is important not because it is being realized by isolated individuals but that it is morphing into group-think, into a new (virtual) demographic with its own mantras for getting out and staying out of debt.

[HarryBosch]

During the Great Depression unemployment was nearly 25%.

Today we’re only at 6.1% – let’s hope it doesn’t rise any further.
———-
Amity Shlaes, author of a new history of the Great Depression, talks about Franklin D. Roosevelt’s baleful economic legacy, the growth of government, and the death of classical liberalism.

Shlaes shows how both Hoover and Roosevelt “overestimated the value of government planning” and intensified and prolonged the very problems they were seeking to fix.

http://www.reason.com/news/show/123476.html

In her meticulously researched new history of the Depression, The Forgotten Man (HarperCollins), journalist Amity Shlaes describes the received catechism of the era: “Roosevelt made things better by taking charge. His New Deal inspired and tided the country over. In this way, the country fended off revolution of the sort bringing down Europe. Without the New Deal, we would all have been lost.…The attitude is that the New Deal is the best model we have for what government must do for weak members of society, in both times of crises and times of stability.” But that conventional account, she writes, fails to capture “the realities of the period.” Shlaes shows how both Hoover and Roosevelt “overestimated the value of government planning” and intensified and prolonged the very problems they were seeking to fix.

[HarryBosch]

During the Great Depression unemployment was nearly 25%.

Today we’re only at 6.1% – let’s hope it doesn’t rise any further.
———-
Amity Shlaes, author of a new history of the Great Depression, talks about Franklin D. Roosevelt’s baleful economic legacy, the growth of government, and the death of classical liberalism.

Shlaes shows how both Hoover and Roosevelt “overestimated the value of government planning” and intensified and prolonged the very problems they were seeking to fix.

http://www.reason.com/news/show/123476.html

In her meticulously researched new history of the Depression, The Forgotten Man (HarperCollins), journalist Amity Shlaes describes the received catechism of the era: “Roosevelt made things better by taking charge. His New Deal inspired and tided the country over. In this way, the country fended off revolution of the sort bringing down Europe. Without the New Deal, we would all have been lost.…The attitude is that the New Deal is the best model we have for what government must do for weak members of society, in both times of crises and times of stability.” But that conventional account, she writes, fails to capture “the realities of the period.” Shlaes shows how both Hoover and Roosevelt “overestimated the value of government planning” and intensified and prolonged the very problems they were seeking to fix.

[HarryBosch]

During the Great Depression unemployment was nearly 25%.

Today we’re only at 6.1% – let’s hope it doesn’t rise any further.
———-
Amity Shlaes, author of a new history of the Great Depression, talks about Franklin D. Roosevelt’s baleful economic legacy, the growth of government, and the death of classical liberalism.

Shlaes shows how both Hoover and Roosevelt “overestimated the value of government planning” and intensified and prolonged the very problems they were seeking to fix.

http://www.reason.com/news/show/123476.html

In her meticulously researched new history of the Depression, The Forgotten Man (HarperCollins), journalist Amity Shlaes describes the received catechism of the era: “Roosevelt made things better by taking charge. His New Deal inspired and tided the country over. In this way, the country fended off revolution of the sort bringing down Europe. Without the New Deal, we would all have been lost.…The attitude is that the New Deal is the best model we have for what government must do for weak members of society, in both times of crises and times of stability.” But that conventional account, she writes, fails to capture “the realities of the period.” Shlaes shows how both Hoover and Roosevelt “overestimated the value of government planning” and intensified and prolonged the very problems they were seeking to fix.

[HarryBosch]

During the Great Depression unemployment was nearly 25%.

Today we’re only at 6.1% – let’s hope it doesn’t rise any further.
———-
Amity Shlaes, author of a new history of the Great Depression, talks about Franklin D. Roosevelt’s baleful economic legacy, the growth of government, and the death of classical liberalism.

Shlaes shows how both Hoover and Roosevelt “overestimated the value of government planning” and intensified and prolonged the very problems they were seeking to fix.

http://www.reason.com/news/show/123476.html

In her meticulously researched new history of the Depression, The Forgotten Man (HarperCollins), journalist Amity Shlaes describes the received catechism of the era: “Roosevelt made things better by taking charge. His New Deal inspired and tided the country over. In this way, the country fended off revolution of the sort bringing down Europe. Without the New Deal, we would all have been lost.…The attitude is that the New Deal is the best model we have for what government must do for weak members of society, in both times of crises and times of stability.” But that conventional account, she writes, fails to capture “the realities of the period.” Shlaes shows how both Hoover and Roosevelt “overestimated the value of government planning” and intensified and prolonged the very problems they were seeking to fix.

[HarryBosch]

During the Great Depression unemployment was nearly 25%.

Today we’re only at 6.1% – let’s hope it doesn’t rise any further.
———-
Amity Shlaes, author of a new history of the Great Depression, talks about Franklin D. Roosevelt’s baleful economic legacy, the growth of government, and the death of classical liberalism.

Shlaes shows how both Hoover and Roosevelt “overestimated the value of government planning” and intensified and prolonged the very problems they were seeking to fix.

http://www.reason.com/news/show/123476.html

In her meticulously researched new history of the Depression, The Forgotten Man (HarperCollins), journalist Amity Shlaes describes the received catechism of the era: “Roosevelt made things better by taking charge. His New Deal inspired and tided the country over. In this way, the country fended off revolution of the sort bringing down Europe. Without the New Deal, we would all have been lost.…The attitude is that the New Deal is the best model we have for what government must do for weak members of society, in both times of crises and times of stability.” But that conventional account, she writes, fails to capture “the realities of the period.” Shlaes shows how both Hoover and Roosevelt “overestimated the value of government planning” and intensified and prolonged the very problems they were seeking to fix.

[HarryBosch]

This is scary stuff. Here’s some quick notes:

Elizabeth Warren compared data of the One-income, two parents, two kids family of 1970 and data of the Two-income, two parents, two kids family of the 2000s.

Expenses that went down – Inflation Adjusted:
– 36% less spent on clothes
– 18% less spent on food
– 52% less spent on appliances
– 24% less spent on car (maintenance)

Expenses that went up – Inflation Adjusted:
+ 76% increase in mortgage payment
+ 74% increase in health insurance
+ 52% increase in cars (two incomes need two cars)
+ 100% increase in child care
+ 25% increase in progressive taxes

down expenses are smaller purchases, flexible, controllable
up expenses are big fixed expenses

big fixed expenses – early 70’s family spent less than 1/2 their income
big fixed expenses – early 2000’s family spending 3/4 their income

two incomes to support the median, middle class family mean two times the risk
one income family – if job loss then mom goes temp work + unemployment ins

two income family needs 104 paychecks (52 weeks x 2)
one income family needs only 52 paychecks to stay middle class – less risk

The thing that got me was her notes about how families in the 1970s believed the way to launch their kids into the middle class was 12 years of public education – no cost education. But in the 2000’s almost all people believe that a colleges education is required to enter the middle class – which is an added major expense for middle class families. On top of the increased health care expenses that have been shifted to the middle class families – less and less are employers paying for health care for employees. In addition, it is also believed that pre-school is needed – maybe 2 years worth – which was an almost non-existent expense of the early 1970’s family. So not education is no longer 12 years but 2+12+4 = 18 years of education which a family now pays for 1/3 of the costs. The middle class is disappearing.

[HarryBosch]

This is scary stuff. Here’s some quick notes:

Elizabeth Warren compared data of the One-income, two parents, two kids family of 1970 and data of the Two-income, two parents, two kids family of the 2000s.

Expenses that went down – Inflation Adjusted:
– 36% less spent on clothes
– 18% less spent on food
– 52% less spent on appliances
– 24% less spent on car (maintenance)

Expenses that went up – Inflation Adjusted:
+ 76% increase in mortgage payment
+ 74% increase in health insurance
+ 52% increase in cars (two incomes need two cars)
+ 100% increase in child care
+ 25% increase in progressive taxes

down expenses are smaller purchases, flexible, controllable
up expenses are big fixed expenses

big fixed expenses – early 70’s family spent less than 1/2 their income
big fixed expenses – early 2000’s family spending 3/4 their income

two incomes to support the median, middle class family mean two times the risk
one income family – if job loss then mom goes temp work + unemployment ins

two income family needs 104 paychecks (52 weeks x 2)
one income family needs only 52 paychecks to stay middle class – less risk

The thing that got me was her notes about how families in the 1970s believed the way to launch their kids into the middle class was 12 years of public education – no cost education. But in the 2000’s almost all people believe that a colleges education is required to enter the middle class – which is an added major expense for middle class families. On top of the increased health care expenses that have been shifted to the middle class families – less and less are employers paying for health care for employees. In addition, it is also believed that pre-school is needed – maybe 2 years worth – which was an almost non-existent expense of the early 1970’s family. So not education is no longer 12 years but 2+12+4 = 18 years of education which a family now pays for 1/3 of the costs. The middle class is disappearing.

[HarryBosch]

This is scary stuff. Here’s some quick notes:

Elizabeth Warren compared data of the One-income, two parents, two kids family of 1970 and data of the Two-income, two parents, two kids family of the 2000s.

Expenses that went down – Inflation Adjusted:
– 36% less spent on clothes
– 18% less spent on food
– 52% less spent on appliances
– 24% less spent on car (maintenance)

Expenses that went up – Inflation Adjusted:
+ 76% increase in mortgage payment
+ 74% increase in health insurance
+ 52% increase in cars (two incomes need two cars)
+ 100% increase in child care
+ 25% increase in progressive taxes

down expenses are smaller purchases, flexible, controllable
up expenses are big fixed expenses

big fixed expenses – early 70’s family spent less than 1/2 their income
big fixed expenses – early 2000’s family spending 3/4 their income

two incomes to support the median, middle class family mean two times the risk
one income family – if job loss then mom goes temp work + unemployment ins

two income family needs 104 paychecks (52 weeks x 2)
one income family needs only 52 paychecks to stay middle class – less risk

The thing that got me was her notes about how families in the 1970s believed the way to launch their kids into the middle class was 12 years of public education – no cost education. But in the 2000’s almost all people believe that a colleges education is required to enter the middle class – which is an added major expense for middle class families. On top of the increased health care expenses that have been shifted to the middle class families – less and less are employers paying for health care for employees. In addition, it is also believed that pre-school is needed – maybe 2 years worth – which was an almost non-existent expense of the early 1970’s family. So not education is no longer 12 years but 2+12+4 = 18 years of education which a family now pays for 1/3 of the costs. The middle class is disappearing.

[HarryBosch]

This is scary stuff. Here’s some quick notes:

Elizabeth Warren compared data of the One-income, two parents, two kids family of 1970 and data of the Two-income, two parents, two kids family of the 2000s.

Expenses that went down – Inflation Adjusted:
– 36% less spent on clothes
– 18% less spent on food
– 52% less spent on appliances
– 24% less spent on car (maintenance)

Expenses that went up – Inflation Adjusted:
+ 76% increase in mortgage payment
+ 74% increase in health insurance
+ 52% increase in cars (two incomes need two cars)
+ 100% increase in child care
+ 25% increase in progressive taxes

down expenses are smaller purchases, flexible, controllable
up expenses are big fixed expenses

big fixed expenses – early 70’s family spent less than 1/2 their income
big fixed expenses – early 2000’s family spending 3/4 their income

two incomes to support the median, middle class family mean two times the risk
one income family – if job loss then mom goes temp work + unemployment ins

two income family needs 104 paychecks (52 weeks x 2)
one income family needs only 52 paychecks to stay middle class – less risk

The thing that got me was her notes about how families in the 1970s believed the way to launch their kids into the middle class was 12 years of public education – no cost education. But in the 2000’s almost all people believe that a colleges education is required to enter the middle class – which is an added major expense for middle class families. On top of the increased health care expenses that have been shifted to the middle class families – less and less are employers paying for health care for employees. In addition, it is also believed that pre-school is needed – maybe 2 years worth – which was an almost non-existent expense of the early 1970’s family. So not education is no longer 12 years but 2+12+4 = 18 years of education which a family now pays for 1/3 of the costs. The middle class is disappearing.

[HarryBosch]

This is scary stuff. Here’s some quick notes:

Elizabeth Warren compared data of the One-income, two parents, two kids family of 1970 and data of the Two-income, two parents, two kids family of the 2000s.

Expenses that went down – Inflation Adjusted:
– 36% less spent on clothes
– 18% less spent on food
– 52% less spent on appliances
– 24% less spent on car (maintenance)

Expenses that went up – Inflation Adjusted:
+ 76% increase in mortgage payment
+ 74% increase in health insurance
+ 52% increase in cars (two incomes need two cars)
+ 100% increase in child care
+ 25% increase in progressive taxes

down expenses are smaller purchases, flexible, controllable
up expenses are big fixed expenses

big fixed expenses – early 70’s family spent less than 1/2 their income
big fixed expenses – early 2000’s family spending 3/4 their income

two incomes to support the median, middle class family mean two times the risk
one income family – if job loss then mom goes temp work + unemployment ins

two income family needs 104 paychecks (52 weeks x 2)
one income family needs only 52 paychecks to stay middle class – less risk

The thing that got me was her notes about how families in the 1970s believed the way to launch their kids into the middle class was 12 years of public education – no cost education. But in the 2000’s almost all people believe that a colleges education is required to enter the middle class – which is an added major expense for middle class families. On top of the increased health care expenses that have been shifted to the middle class families – less and less are employers paying for health care for employees. In addition, it is also believed that pre-school is needed – maybe 2 years worth – which was an almost non-existent expense of the early 1970’s family. So not education is no longer 12 years but 2+12+4 = 18 years of education which a family now pays for 1/3 of the costs. The middle class is disappearing.

[HarryBosch]

Here’s mine (click to enlarge):

[img_assist|nid=8851|title=Bank Owned in Wildomar|desc=|link=node|align=left|width=100|height=75]

[HarryBosch]

Here’s mine (click to enlarge):

[img_assist|nid=8851|title=Bank Owned in Wildomar|desc=|link=node|align=left|width=100|height=75]

[HarryBosch]

Here’s mine (click to enlarge):

[img_assist|nid=8851|title=Bank Owned in Wildomar|desc=|link=node|align=left|width=100|height=75]

[HarryBosch]

Here’s mine (click to enlarge):

[img_assist|nid=8851|title=Bank Owned in Wildomar|desc=|link=node|align=left|width=100|height=75]

[Author]

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