Sorry baby boomers but you are killing us. You enjoyed an economic rising tide for pretty much your whole lives (a tide which today’s young adults can’t even dream of) and, well, if you haven’t squared yourself away financially by now (I am speaking generationally here) I don’t have a whole lot of sympathy. The money is running out. Sorry. I’m not inclined to run my financial life and that of my country into the ground just because you’ve been “promised” a certain standard of living.
It sounds harsh, and perhaps in some ways it is. But you’ve gotten the breaks. You got to party. You guys divorced each other, did blow, and leveraged the country to meet your “needs.” Now my generation has to clean things up and put things in order, like adults.
Where I live they are building houses again. The neighborhood beside me should have been built 5 years ago but finally the bulldozers are in motion again. But don’t call it a recovery. There is no vibrance in the market. Just a subset of people escaping places like California with solid state jobs at the University.
But even here there is concern. 2 years ago the builders began again, thinking the market had finally turned. But after a brief uptick things settled down again. The all cash buyers disappeared and all that was left were regular people who actually needed mortgages.
And getting a mortgage is still pretty tough as the attached article outlines.
But I believe a small part (but a growing part) of the ongoing housing chill is that many people have finally seen through the rather idiotic obsession with always living in the largest house one can afford – or in many cases – one cannot afford.
Well she’s been doing the rounds for a long time already. 29 of the Dow 30 have already sent checks her way. But more money is coming.
I wonder what our friends on the legitimate Left are going to do about this? In the end probably vote to perpetuate crony capitalism I suspect.
As we’ve said before, many interests are very keen on seeing a Hillary/Jeb or Christie or Romney race in 2016. For the crony class it will be a win either way.
Obama knows in the end who butters his bread. Obama loves him some corporations and he gave a nod to a few last night. But in the State of the Union Address the president failed to mention many of the other companies which have shown him favor and which his administration has smiled upon.
Dollar goes up, oil goes down. Or is it the opposite?
In dollar terms it’s not as dramatic. We’re moving upward but nothing terribly unusual. But check out gold priced in euros. That’s a solid move.
I hate the term “perfect storm” but the attached article makes some great points about bank exposure to energy prices.
It should be noted that Charles Hugh Smith nailed it a month and a half ago; he said, “The 35% drop in the price of oil is the first domino.”
It’s amazing but even now many people refuse to see this rather obvious fact. Government and big business like each other. For the most part they aren’t rivals. GM, Goldman Sachs, GE, Boeing, JPMorgan, Monsanto, Walmart, Chrysler, Berkshire Hathaway, Google, CVS, AT&T, Northrup Grumman and many other giant companies are partners (to a significant degree) with the US government.
Because that’s where the money is. Specifically taxpayer money.
We are starting to approach what many economists call “full employment.” The point at which the people who are unemployed really are “just between jobs.” There is little long term unemployment. Jobs are plentiful. There is upward pressure on wages. In short, general prosperity.
Can’t you feel it?
America is not Europe. We are a country founded by individualists, scoundrels, dreamers, and doers. We do not have the aristocratic legacy of the Old World with its stifling worldview and distinct class system within an ever present welfare state. We are a free people. This country was an escape from Europe. This country is a free land. This freedom is ingrained in our DNA. It is what makes an American an American, no matter that American’s ethnicity. We are bound by an idea not geography or ancestry. America is indeed exceptional in that regard.