Tuesday, November 25, 2008
The Greatest Wealth Transfer of All Time?
If American's biggest investment (overhead) is their home, and folks can now buy a home for 40% LESS than 2 years ago... Isn't SOMEBODY benefitting?
Young people, young families, people without "family money", will not be strapped to the gills with both parents working 3 jobs just to get into their first home.
This is a crisis?
It is, if your wealth is represented in financial assets, because ALL financial assets have at their base the credit and mortgage market. If your wealth is derived from a butcher shop on main street... not so much.
The problem for the system and the financial markets is that at the same time that the collateral value of real estate to the banking/lending market is declining, the demand for automobiles - the other major demand for debt - is contracting rapidly as well.
This does NOT have to be your problem.
Arranging your life in a very local way can help you to lower your personal overhead much faster than the economy can drop your income.
Mentatt (at) yahoo (d0t) com
Posted by The Short Story Man at 6:20 AM