Housing is Unaffordable for Young People

[Joe Flacco]

Me and a few others here remember the 70's. High inflation, 13% mortgage, 16% cd rates. Not as much fun as you might think.

In the Feds decisions to micro-manage the economy, keeping inflation/job/GDP, etc within certain ranges, they prevent natural cycles of minor booms/busts. In doing so they generally lead the economy to a major bust.

Let the markets set the rates, not the Feds. Their constant meddling is never good.

The 70's was the tail end of the last time we saw a "roaring" economy. They raised the rate as high as they did to rein it in. You should know.. you were there.

I am happy to deal the 70's if you give me the 50's and 60's before that.

 

[The Bob]

We didn't have 2-3% mortgage rates during the 2010's. Mortgage rates were 3% to 5% during that time.

Again. I encourage you to actually compare rates and changes in home prices. It is when rates are high and moving higher that you see a higher rate of appreciation for home prices.

We had some of the lowest mortgage rates ever during the 2010's.

 

[Joe Flacco]

This is why rates had to go down and stay down. Even with rates going down and staying down, GDP has continued to trend down.

I think they should leave it at zero until it is not going down and we are running hot or "roaring" for a decade.

 

[Joe Flacco]

Low rates until we see it run hot like this for a decade.

This 2% GDP growth rate is bull****. Give me 5%.

 

[Joe Flacco]

One of the main differences between boomer economy and Millenial economy.

Millenials got this bull**** 2% GDP growth rate while boomers were seeing 4-5% GDP growth rate.

 

[ucbruin]

Meet the 'Beatlemania boomers.' They face a looming retirement crisis​

https://www.usatoday.com/story/money/2024/02/21/late-boomers-401k-ira-retirement-wealth/72668356007/

Not all boomer retirement is equal....

 

[Fernando]

One of the main differences between boomer economy and Millenial economy.

Millenials got this bull**** 2% GDP growth rate while boomers were seeing 4-5% GDP growth rate.

In a fully developed economy, 2% GDP is considered good and growing.

 

[Joe Flacco]

In a fully developed economy, 2% GDP is considered good and growing.

Good for who exactly?

 

[TerryRohrer]

Constrained GDP is hardly a surprising outcome when the government confiscates and redistributes an increasingly larger percentage of the economy (mostly from productive endeavors to mostly non-productive endeavors). (graph shows Federal spending as a percentage of GDP)

https://www.imf.org/external/datamapper/exp@FPP/USA

" increases in public spending can hit company profits and thus lead to a reduction in private investment and economic growth. Cuts in public spending, on the other hand, can lead to more private investment, and faster growth."
"Increases in public wages also can push up wage demands in the private sector, both in unionized and non-unionized labor markets. Increases in the number of public sector jobs lead to tighter labor market conditions and increased wage pressure. More generous government transfers to those who are out of work can also bid up private sector wages. The opposite holds for cuts in public wages and public employment."

How Government Spending Slows Growth

www.nber.org

 

[Fernando]

Good for who exactly?

For entire year of 2024, Japan's GDP growth is estimated at 0.9%.
We're doing good but Trump's tariffs will set us into a recession.
Biden gave us downward trend in inflation and Trump will increase it soon.