The mini recession continues

We are essentially in recession already. The major issue in our economy remains the same, debt to income ratio and wages haven't kept pace with inflation in decades.



If you notice, my age group actually spends less on entertainment then the baby boomers did. Interesting isn't it?

But despite the strong labor market, wage growth has lagged economists’ expectations. In fact, despite some ups and downs over the past several decades, today’s real average wage (that is, the wage after accounting for inflation) has about the same purchasing power it did 40 years ago. And what wage gains there have been have mostly flowed to the highest-paid tier of workers.

But don't worry the only reason the wages are low is because young people are little #s who don't work hard enough to earn more despite higher productivity.



Tech is in a bear market currently, mainly the FANG stocks as was popularized by Jim Cramer, but that's not it the housing market is in a serious downturn as well which to some degree should be expected by the rising interest rates.

Home Builder Confidence Tumbles

The numbers: The National Association of Home Builders’ monthly confidence index plunged eight points to 60 in November.

With link to the NAHB in the actual article that has the total collected data.

But such a sharp drop may presage something more sinister than a slower pace of building. Home builders were one of the first groups to feel the top of the market cycle just before the Great Recession. In June 2005, NAHB’s index hit 72, its cycle high. It started to tumble the next month, and by mid-2006 stood in contraction territory.

What's probably behind all of this??? I mean besides the record debt to income ratio and lowest savings rate driven by massive inflation and no wage growth????

Millennials not buying homes

America's attitude towards home-ownership is changing. Only 48 percent of millennials (age 21-36) believe that buying a home is a good investment, according to the latest ValueInsured Modern Homebuyer Survey. That's a record low, according to the report, and a sharp contrast to the previous high of 77 percent just two years ago.

My assumption is that it's because they are lazy and won't work 16 hours a day 6 days a week (like the slaves did during slavery) so they can actually save money. I digress.

Anyway, back to Fox News.

I see you did not mention the student debt and the 80k of debt for a women's studies degree which is worth what on the market? Bad BAD guidance counseling and propaganda that you need a degree.

a reply to: lakenheath24

There are a bunch of differences between now and 1972.

People buying $1k cell phones.
$50 pickups.
A house that's twice what they really need without the %20 down payment required in 1972.

originally posted by: lakenheath24
I see you did not mention the student debt and the 80k of debt for a women's studies degree which is worth what on the market? Bad BAD guidance counseling and propaganda that you need a degree.

I agree that educational costs are out of control, and that some people should go the trade route.
There is also the fact that many students are very irresponsible with their student loans.

I had a friend that had six figure student loan debt. She graduated and got a job for $11 hr in her profession!
A lot of it was her fault, she was basically living like a rock star on those loans! I would be curious to see how much "student debt" is actually from education related cost vs. irresponsible spending.

a reply to: JAGStorm

There should be mandatory financial classes in HS. Get rid of Algebra 2 and replace it with economics 101. Explain how Credit works, explain budgeting, savings, and how credit ratings work..among other things. This class would be more valuable than any class you could take in HS.

a reply to: toysforadults

Apple is in fact heading down.

www.digitaltrends.com...

a reply to: lakenheath24

You are right economics classes should get taught in high school.

Then you would be asserting actual data with the presentation of your argument.

But you cant cause you are a parrot. Unless you prove me wrong. I dare you. Show me data.

a reply to: toysforadults
Recession? In the UK our government likes to call it austerity. We have had austerity for over 10 years now. The difference being in a recession everybody suffers ,but in our austerity the working man suffers and the rich get richer.
A little nugget for you, in 2016 after the vote to come out of the EU £1.2 trillion was wiped off the UK domestic household spending.

originally posted by: lakenheath24
a reply to: toysforadults

Apple is in fact heading down.

www.digitaltrends.com...

No #. Read my OP.

a reply to: crayzeed

Its bevause your young people are lazy. All our problems are their fault. Losers.

Just kidding. Yes recession means harding wprking conditions for the 50% of our country which are already working poor.

The Fed wont raise rates due to low black Friday sales and you will know for real recession is coming. Next is drop in rates thats when you run to gold and silver.

a reply to: Bluntone22

A house that's twice what they really need without the %20 down payment required in 1972.

I agree with everything you said, but the above is not necessarily true. In many parts of my town you aren't even legally allowed to build a small house. In the 1970's and before small houses were the norn. Many neighborhoods now don't even allow houses under 1500 sq ft.

Many older homes were 900, 1200 sq feet.
Many older homes are either already lived in, being flipped for much higher cost, in disrepair, or being torn down.
That doesn't leave a lot for young people. Either they live with mom and dad, they build a big house, or they buy a house with probably less than 20%.

You also can't compare the cost of house in 1972 vs today.

a reply to: toysforadults

Ummm, that was obviously sarcastic, there are LOTS of worthless degrees that would take 20+ years to pay back what the market would pay the graduate. So many in fact that there is an actual bill called, funnily, H.R. 4658: Protecting Students from Worthless Degrees Act. CAW, CAW, CAW.
www.govtrack.us...


And FYi, this is not the mudpit so can the name calling.

a reply to: JAGStorm

That may be true but you also have to realize that its very expensive to live. But I agree with your point.

a reply to: Bluntone22

Agreed....18% mortgages and gas shortages for a one-two punch.

a reply to: Bluntone22

You could show me data to back your point of view and prove that you actually know what you're talking about.

But I doubt you will.

I could even agree with you. But the data I see Tells another story.

a reply to: lakenheath24

Its not name calling look up the definition but I concede to that point.

Yes legislation. But where is the data?

a reply to: toysforadults

It's just a pretty graph. Any American can break free of these chains.

Don't be a statistic.

Don't get knocked up.

Don't be a middle man.

Don't F with the law.

Be content with what you have.

Live within your means.


A very basic set of parameters will keep most people out of trouble and living comfortably.