Its my best year ever already with well over a 1/4 left.
Kick arse, SJIts my best year ever already with well over a 1/4 left.
True - but, firstly, the education loans don't start to total in the trillions....as does real estate, so the scope is somewhat different. Student loan debt, all told, is about one trillion...most of which is at least "decent" debt, so it cannot rock the boat like the MANY trillions in the last crash.
Real Estate debt is closer to 15 Trillion. Those are fairly big numbers. But it's not a question of the debt - but rather the inflated part of it......
I agree that Real Estate and many other commodities have recurring "waves", but I would not call them all bubbles in the traditional sense. My boat can deal with some decent sized waves, but should a 40 footer "rogue" come along, I'll be toast.
I've seen at least 3, and maybe more, big real estate bubbles....but nothing compared to this one. If we don't let it get that far out of hand, then the return to earth will be softer. IMHO, anyway.
3. ... housing (that someone thinks is coming back),
I've seen several real estate bubbles and they pale in comparison to the current mess however I don't think most people understand how bad the current mess still is.
Still no look all that good Jags.
Actually the education loan situation is:
1. getting worse
2. tying up dollars
3. preventing those with them from being able to either afford that housing (that someone thinks is coming back),
4. screwing up their credit ratings to the point they won't even qualify for sub prime loans (you remember them don't you).
But it isn't just real estate bubbles that cause issues, consumer and commercial loan missteps can also dump the economy.
Well let's see:
Through 2011: http://www.statisticbrain.com/foreclosure-home-sales-statistics/
and the July 2012 foreclosure rate heat map: http://www.realtytrac.com/trendcenter/trend.html
Still no look all that good Jags.
IMHO, anyway.
in some cases impossible for the person with the loan to participate in the one activity that drives a very large fraction of the economy, the purchase of living quarters. Then since it is so easy to get them (sound familiar?) schools have no incentive to control what they charge (this starts the spiral).
Sort of like the US debt situation, eventually it becomes real money.
It wouldn't pain me to see the "every person should own a house" model of America transition to a more reasonable one. It will be painful while it occurs, but so many young folks move around these days that owning is sometimes a detriment to their finances in many ways.
If we could just get rid of oversized mortgage deductions at the same time, we'd be on a more solid footing.
You are correct in nothing what our economy WAS based upon...the larger question is what is will be in the future. Sure, everyone needs somewhere to live, but the House As ATM is over....and hopefully the era of McMansions and 0% down also.
but the House As ATM is over....and hopefully the era of McMansions and 0% down also.
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