As the bottom rung of the housing ladder hits seven figures in a record number of US cities, ordinary life is being repriced beyond reach for most people. This is what a K-shaped economy looks like.
The mortgages attached to these homes now leaves the buyer totally exposed to the whims of central banking systems....one good crash sees the Banksters load up with another big slice of American Pie Castles in the sky. If you don't fix the banking mafia you are screwed.
I agree with your analysis but it paints a grim picture. It seems to be a world wide phenomenon that is causing a greater divide in wealth classes. I have to wonder where it will lead for the next few generations. Will the population decrease because life is too expensive or will it erupt in crime, war, or totalitarian clampdowns? Homelessness is already rapidly rising in cities and towns, increasing drug use and crime.
The upper class, hoarding wealth, are still insulated from these unpleasantries. They will never give up their advantage until forced to by circumstance. "The great taking" will continue but eventually the economy will have nowhere to go with rampant inflation and unchecked poverty.
There will be a "correction" I think, in the stock market, the housing market, the whole economy. Maybe then the governments, banking cartels, the parasite class, will start to feel the backlash of what they've brought upon us.
Maybe their control will slip and people will get wise.
I really think that it will be self correcting. As urban density increases, there are fewer lots to build on which drives up the prices. Home builders choose to build more expensive homes to make more profit off each property. When the price of new properties goes up, it also drives up the price of older homes.
People make poor decisions. They are in these completely unaffordable places and then they want to double down and make a huge investment in a property that they cannot afford. That is not a bad economy, that is just insanity and stupidity, plain and simple.
But they continue to find suckers that will play their game. People go to NYC and live in a closet sized apartment for $3k/mo. People will move to some city because they have a sports team or nightclubs where they would be lucky to be able to afford to go 2-3 times a year. They will lie to themselves and think that they are doing better making $100K/year where that is near the poverty line than in some smaller place where they might make $50K/year and be in the upper half of the income levels and live well.
It is the same mentality that makes people buy lottery tickets.
The mortgages attached to these homes now leaves the buyer totally exposed to the whims of central banking systems....one good crash sees the Banksters load up with another big slice of American Pie Castles in the sky. If you don't fix the banking mafia you are screwed.
Might be slowly returning to multi generations households with the high housing costs.
I agree with your analysis but it paints a grim picture. It seems to be a world wide phenomenon that is causing a greater divide in wealth classes. I have to wonder where it will lead for the next few generations. Will the population decrease because life is too expensive or will it erupt in crime, war, or totalitarian clampdowns? Homelessness is already rapidly rising in cities and towns, increasing drug use and crime.
The upper class, hoarding wealth, are still insulated from these unpleasantries. They will never give up their advantage until forced to by circumstance. "The great taking" will continue but eventually the economy will have nowhere to go with rampant inflation and unchecked poverty.
There will be a "correction" I think, in the stock market, the housing market, the whole economy. Maybe then the governments, banking cartels, the parasite class, will start to feel the backlash of what they've brought upon us.
Maybe their control will slip and people will get wise.
I'm being optimistic.
I really think that it will be self correcting. As urban density increases, there are fewer lots to build on which drives up the prices. Home builders choose to build more expensive homes to make more profit off each property. When the price of new properties goes up, it also drives up the price of older homes.
People make poor decisions. They are in these completely unaffordable places and then they want to double down and make a huge investment in a property that they cannot afford. That is not a bad economy, that is just insanity and stupidity, plain and simple.
But they continue to find suckers that will play their game. People go to NYC and live in a closet sized apartment for $3k/mo. People will move to some city because they have a sports team or nightclubs where they would be lucky to be able to afford to go 2-3 times a year. They will lie to themselves and think that they are doing better making $100K/year where that is near the poverty line than in some smaller place where they might make $50K/year and be in the upper half of the income levels and live well.
It is the same mentality that makes people buy lottery tickets.
Well said
Times are changing