Tag Archives: housing bubble

Fannie’s Mae and Freddie Mac’s Stealth Economic War on the Millennials

During the past 35 years we have had a buy now, and hope someone else will be stuck paying later economy. And as a result the generations born after 1957 or so have been left much poorer. But leaving the generations born after 1957 or so much poorer is apparently not enough for those older and more powerful to get everything they have promised themselves, but refused to pay for.

The millennials already receive lower pay, have higher debts, will be forced to pay higher taxes, will need to pay privately for what older generations had received as public services, and will need to save for what older generations had received as public old age benefits, at their expense. But for Generation Greed to finish cashing in, the millennials also have to keep spending money they do not have – to prop up consumer sales so the economy doesn’t finally collapse.  And to prop up stocks prices and housing prices at a level high enough for Generation Greed to sell. I recently found out just how crazy things have gotten just to keep the party going just a little bit longer. It is now federal policy that young homebuyers should pay so much for houses that 50 percent of their income goes for debts. Think I must be joking? Think that can’t be true?  Read on.

Continue reading

Advertisements

Generation Greed’s Last Economic Orgy: Federal Reserve Z1 Debt Data for 2016, Rising Housing Prices, Census Bureau data on Worse Off Young Adults, Falling Life Expectancy, Etc.

The problem with socialism is that you eventually run out of other people’s money” – Margret Thatcher in 1976

The problem with capitalism is that given enough inequality, eventually businesses trying to sell things run out of other people’s money” — Larry Littlefield, 2016

For 35 years, generations of Americans born after 1957 or so have been paid less but sold more, with the difference covered first by more household members in the workforce, then by inadequate requirement savings, and then by soaring public and private debt. The richest and most entitled generations in U.S. history worked hard and were very creative, but they over-consumed what even they were able to produce and expected too many years in retirement with too little in savings, at the expense of the poorer generations that have followed them. With some members of those generations grabbing far more than the others. With too much money in too few hands, the whole world economy has become dependent on Americans spending more than they had. And since America finally started to go broke with millions retiring into poverty, the world economy has faced a global crisis of demand.

When you put all the trends together, as I have below, it adds to a shocking picture that puts every current debate in context. Today’s young adults paid less than Generation Greed was paid at the same age in 1975, and forced by government policy to pay more for housing. Life expectancy falling. Personal and federal debts once again soaring, all the mistakes of the 2000s being repeated. Topping it off, we now have Donald Trump as President. Does this mean that the U.S. is finally prepared to admit, face and tackle its problems? Or does it mean that the most over-privileged and entitled members of the most over-privileged and entitled generations in U.S. history are just grabbing more, in one last economy orgy before the final collapse?

Continue reading