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This Housing Chart Destroys The Arguments Of The Economic Optimists

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Chart - Public DomainDid you know that the rate of homeownership in the United States has fallen to a 20 year low?  Did you know that it has been falling consistently for an entire decade?  For the past couple of years, the economic optimists have been telling us that the economy has been getting better.  Well, if the economy really has been getting better, why does the homeownership rate keep going down?  Yes, the ultra-wealthy have received a temporary financial windfall thanks to the reckless money printing the Federal Reserve has been doing, but for most Americans economic conditions have not been improving.  This is clearly demonstrated by the housing chart that I am about to share with you.  If the economy really was healthy, more people would be getting good jobs and thus would be able to buy homes.  But instead, the homeownership rate has continued to plummet throughout the entire “Obama recovery”.  I think that this chart speaks for itself…

Homeownership Rate 2015

Of course this homeownership collapse began well before Barack Obama entered the White House.  Our economic problems are the result of decades of incredibly bad decisions.  But anyone that believes that things have “turned around” for the middle class under Barack Obama is just being delusional.

If the U.S. economy truly was in “good shape”, the percentage of Americans that own homes would not be at a 20 year low

The U.S. homeownership rate fell to the lowest in more than two decades in the fourth quarter as many would-be buyers stayed on the sidelines, giving the rental market a boost.

The share of Americans who own their homes was 64 percent in the fourth quarter, down from 64.4 percent in the previous three months, the Census Bureau said in a report. The rate was at the lowest since the second quarter of 1994, data compiled by Bloomberg show.

Rising prices and a tight supply of lower-end listings have put homes out of reach for some entry-level buyers, who also face strict mortgage standards. The share of U.S. homebuyers making their first purchase dropped in 2014 to the lowest level in almost three decades, the National Association of Realtors reported last week.

And it appears that this trend is actually accelerating.  During 2014, the rate of homeownership plummeted by a total of 1.2 percentage points for the year.  That was the largest one year decline that has ever been measured.

So why is this happening?

Well, in order to buy a home you have got to have a good job, and good jobs are in very short supply these days.

Over the past decade, the quality of the jobs in our economy has steadily declined as good jobs have been replaced by low paying jobs.  In addition, government policies are absolutely murdering small business.  At this point, small business ownership in the U.S. is hovering near record lows.

This has resulted in millions of people falling out of the middle class, and it has contributed to the growing divide between the wealthy and the rest of the country.

If our economy was working the way that it should, the middle class would be thriving.

But instead, it is being systematically destroyed.  If you doubt this, I have some statistics that I would like to share with you.  The following facts come from my previous article entitled “The Death Of The American Dream In 22 Numbers“…

#1 The Obama administration tells us that 8.69 million Americans are “officially unemployed” and that 92.90 million Americans are considered to be “not in the labor force”.  That means that more than 101 million U.S. adults do not have a job right now.

#2 One recent survey discovered that 55 percent of Americans believe that the American Dream either never existed or that it no longer exists.

#3 Considering the fact that Obama is in the White House, it is somewhat surprising that 55 percent of all Republicans still believe in the American Dream, but only 33 percent of all Democrats do.

#4 After adjusting for inflation, median household income has fallen by nearly $5,000 since 2007.

#5 After adjusting for inflation, “the median wealth figure for middle-income families” fell from $78,000 in 1983 to $63,800 in 2013.

#6 At this point, 59 percent of Americans believe that “the American dream has become impossible for most people to achieve”.

You can read the rest of that article right here.

The group that has been hit the hardest by all of this has been young adults.

Back in 2005, the homeownership rate for households headed up by someone under the age of 35 was approximately 43 percent.

Today, it has declined to about 35 percent.

From a very early age, we push our young people to go to college, and today more of them are getting secondary education than ever before.

But when they leave school, the “good jobs” that we promised them are often not there, and most of them end up entering the “real world” already loaded down with massive amounts of debt.

According to the Pew Research Center, close to four out of every ten households that are led by someone under the age of 40 are currently paying off student loan debt.

It is hard to believe, but total student loan debt in this country is now actually higher than total credit card debt.  At this point, student loan debt has reached a grand total of 1.2 trillion dollars, and that number has grown by an astounding 84 percent just since 2008.

If you are already burdened with tens of thousands (or in some cases hundreds of thousands) of dollars of debt when you get out of school and you can’t find a decent job, there is no way that you are going to be able to afford to buy a house.

So we have millions upon millions of young people that should be buying homes and starting families that are living with their parents instead.

Back in 1968, well over 50 percent of all Americans in the 18 to 31-year-old age bracket were already married and living on their own.

But today, that number is actually below 25 percent.  Instead, approximately 31 percent of all U.S. adults in the 18 to 34-year-old age bracket are currently living with their parents.

Something has fundamentally gone wrong.

Our economy is broken, and anyone that cannot see this is just being foolish.

So what is the solution?

Please feel free to share what you think by posting a comment below…

  • Tim

    The facts in this article speak for themselves, but it is hard to reconcile these facts with what I see in my area. I live in SC, and there are new houses being built all around me. And the houses are selling. These are very nice homes that start in the low $200k range. I don’t understand it. There is also a lot commercial development going on here.

    • jaxon64

      Maybe some of those young professionals living in the upper middle and middle/middle areas are moving to your lower middle areas so they can find something affordable? $200k here is a duplex, single bedroom condo, or a row house.
      PS: I don’t mean that with any derision for your hometown–probably a lot like where I grew up ( and those $200k homes were a pretty nice home back when I first bought.)

      • Tim

        I used to live in Maryland and work in the District of Columbia. I know how expensive real estate is up there. That’s one of the reasons I moved. The upstate of SC, where I currently reside, is a very nice area.

      • Priszilla

        $200k is a bit much. Can buy a small terraced house or flat in uk for £50k. Kitchen, bathroom, 2-4 rooms, backyard, roof, windows, door, lock.

    • K2

      Are they being bought by first time buyers? I am really curious? Also what kind of houses are they? I mean single or double bedroom?

  • jaxon64

    I work with many people that you would expect to be able to afford homes—but they can’t or don’t.
    Many of the young medical grads are straddled with piles of student loan debt. Between taxes, student loans and insurances, over 50% of income is taken. Throw in some foolish mismanagement like a European auto with a 6 year note…and the fact that most under 35’s are still single where I work. It is the perfect formula for financially struggling, even in a career that would seem to be prime for homeownership.
    I’m so glad that my wife and I have remained level-headed no matter whether we were in the tight times or more profitable periods.
    One other thing that I’d like to mention is that housing costs ( decent housing-not in crime ridden neighborhoods or inner city Detroit, Camden etc) housing costs are ridiculous here in the DC burbs. Builders do not build neighborhoods full of $250k to 300K homes…instead they build “estate homes” “Starting as low as the mid $500,000’s !!!”
    This is the reality here….single people, straddled with debt, cannot comfortably afford mortgages of $3,000 or more a month–and if they actually try it, they are taking a huge risk when they live so close to the edge with mounds of debts/obligations…..

    • Same Stuff Different Day

      Modest, deteriorating houses in Silicon Valley sell for a million or more… over two million in the neighborhoods with lower crime and “better schools”. No family can afford to buy a home unless both parents work full-time at tech jobs where they can both make six-figure incomes.

      Then Obama proclaims this family is “rich” and should be taxed out of existence. Both parents working more than 40 hours per week (tech companies never let their full-timers off with just 40 hours… and don’t pay overtime either), only to be house-poor due to inflated real estate prices, barely able to afford basic necessities like food, insurance, etc. – this is NOT what Americans used to think of as a “rich” family.

      I pray that one day soon, Americans will notice that government policies are being rolled out to deliberately destroy and eliminate the middle class.

  • DJohn1

    Housing is based on one’s ability to earn a living.
    If you have a good credit record, have the money to buy a house, roughly 5-10% down, then you too may own a home. Yes, you and the bank own the home together. You pay approximately 12–2400 in taxes each year to support your county and school system.
    For that you have the privilege of being ruled by the local zoning board. If you like your lawn unmowed, you will hear from them in short order with a fine. They also want to rule whether or not you can have a garden in some cases.
    This is America today.
    So why does anyone want to own a home in the first place?
    The loan starts out at 95% interest and 5% principal. That is why it takes 30-40 years to pay off a house.
    Sounds like a usury criminal act on the part of the banks to me.
    It wasn’t always like that. People payed off home loans in 5 years and had mortgage burning parties in the 40s. Then the cost of housing went up. Instead of a typical 11,000 dollar loan it moved up to 40,000 or better for the same house.
    Now the banks and the cities are crying. Because the inflated price of housing has been coming down. They cannot get people to pass real estate taxes. So a lot of their money has gone away.
    The congress made home loans practically tax deductible for a while. It doesn’t work that way unless you owe a whole lot of money today on a house.
    The idea behind owing a house is that you do not have to pay rent. You get to the point that you have it payed off. Then you just pay taxes and insurance on a house. Which is a whole lot less than paying rent that goes up about 15% per year.
    The US Congress has changed most of the reasons for owning a home. The local county and city has contributed to the farce of owning a home.
    But didn’t you know, owning a house makes you rich. Ask the politicians.
    Until they get real and people have a reason to own a home, then it is over with for the average person.

    • T.

      The American dream of home ownership for young adults is: DEAD. It died 1st with the collapse of our manufacturing industry and 2nd with the popular mindset by high school grads – It is okay to dig yourself a 10 foot hole of college DEBT – Oh, and worry about paying it off later. Consequently, young graduates are competing with growing numbers for fewer high paying jobs – While dragging a ball & chain of college Debt around. The American dream of home ownership for young adults is: DEAD.

      • DJohn1

        Under normal circumstances you are right.
        What to do about it?
        The game plan here is to pick up a property dirt cheap, fix it up, then sell it at a profit. To do that you have to be skilled.
        Where are the dirt cheap properties? FHA sells them in a classified ad all the time. You have to work with a realtor to get one.
        Normally they sell for 2/3rds of the value of the Mortgage that was on them.
        To do this you have to plan 5 to 7 years ahead.
        What are you currently paying to rent an apartment? That is dead loss money. You have nothing to show at the end of your lease agreement. How much does the rent increase year to year?

        The basic plan is you pay less than 1/4 of your monthly net income to buy a property.
        If it gets as high as 1/3 of your net income then you are the loser.
        Car payment must not be more than1/4 of your monthly income. Most people are paying a lot more than that to lease a car.
        If those two factors exceed those numbers it isn’t a good deal for you.
        Duplexes are sometimes the way to go. You live in one side and rent the other side out to pay for the mortgage. Not easy to find.
        What is the depreciation? Because the side you rent out is tax deductable.
        Cosmetic repairs budget. In effect, people living in houses they own are often pigs. The electrical, plumbing, and furnace are basically good. The walls and floor need help. Sometimes the outside needs help as well.
        So putting in time to paint the entire place before you move in is a sound investment. Replacing any plumbing in need of repair is a sound investment.
        Putting an antenna on the roof with a rotator is a lot cheaper than cable. They generally last anywhere from 5 to 10 years.
        Check your building codes with the city.
        Cable companies have the city in their back pocket.
        Carpet or hardwood floors is a good investment for the appearance of a place.
        Replace the toilets. Replace the bathtub if you can.
        Put up decorative shutters on the windows.
        Then when you do sell you can ask top price.
        Check the gutters and roof before you buy.
        One of the cheapest investments in a house is to put in new insulation to lower the utility bills.
        If the walls are beat up to begin with. Putting in new plasterboard with insulation behind the walls can be a good investment.
        All of this costs money to do. Having the money built into the budget helps a lot.
        In the first five years pay the mortgage payment and one principle payment extra each month.
        Your loan is at 95% interest/5% principal. So putting an extra 20-30 dollars more into the principal turns it into a 15 year loan. You are litterally paying it off in advance. And the principal payment is? Knowing the details means knowing how to get buy cheaper.

      • Hightide58

        College graduates still fair better in the long run than non-college grads. The key is earning a marketable degree, and living in an area of the country that does not have an exorbitant cost of living.

      • Random-11

        Young adults should focus on more important things anyway, like what to do when SHTF.

        • T.

          Agree. However, when people are asleep – They only focus on their DREAMS.

  • K

    Let me add another factor, to why home ownership is dropping. Nomad workers. From the oil patch, to construction, to even some IT jobs. They move with the work. Some of these folks move as often as once a year. The pay is often pretty good. But mobility seems to be a requirement.

    • toadsticker

      If you don’t own the business you don’t have much of a chance to get ahead. And you probably have less chance of getting ahead if you are trying to start a new business. In May the owner sold the business that I managed the last 17 years. I moved from job to job and had four jobs this year. At 59 it’s tough to keep digging deep and pushing to pay all the bills and keep your head above water. But, you do what you have to do.

  • djc

    The only real solution, as I see it, is to move to a smallish town 50-75 miles from a big city where the real estate costs are minimal, and then pay off your house. In my Great Lake’s town a very nice century home could be purchased for 60K. Simply pay it off in a few years, pay off a new car in a couple of years and build your savings.

    I feel so incredibly bad for 30 somethings who will never have a family because they are tied to hellish jobs w/major debt to pay.

    Yes, I’m dealing w/a massive snowstorm now with possibly another foot to fall overnight but guess what—I just stay inside until it stops then shovel away; if my neighbor doesn’t snowblow it for me before then.

    • Liberty First

      Good idea, we moved to an inexpensive city in the Midwest where we do not live fancy, but do feel secure. We try hard to stay frugal and trust in God, follow our values, and live decent lives.

      • beartooth777

        when you have God you have EVERYTHING

    • Unix

      Simply pay it off? With what job(s)…been trying to find a real replacement job for 3 years now. I’ve remade myself in several other industries, I am now trying to get a business off the ground, but it is harder than you are saying my friend.

  • Matt thomas

    Home ownership is for suckers, for less than a my last mortgage I have a nicer house and anything breaks and its fixed on the land lords dime. I can leave anytime to find the dwindling work in america. I regret my many years of college. Ive told my son to just learn from the internet for free and lie about having a degree. Unless you are claiming to be a doctor noone ever checks. If you have a common name you can use someone elses degree also. Degrees are like army metals, noone checks your batchelors in something unusable like an english literature degree or good conduct metals etc. But dont give yourself a rocket scientist degree or the metal of honor. Those can be checked. Unless you are practicing law or medicine the only danger is not being hired. its who you know not what you know. Most any job can be learned on the job in a month or two. Just avoid the jobs that lieing about credentials would be criminal , doctor, lawyer, etc. Anytime you dont know something you should or a term you dont understand, just go to the bathroom and get the info from your phone. Yours truely matt thomas doctor of philosophy and ethics. Wink

    • liberalsSUCKobamaTESTICLES

      you must live in a slum

      • Matt thomas

        Not a very intelligent comment . oh and was obamaisapoopoohead taken? Hurry rush limbaigh is on you wouldnt want to miss your opinoin.

    • Hightide58

      I’m sorry Matt, a reputable company will check your credentials. It sounds like your son has a promising future selling cosmetics at the local mall.

      • Matt thomas

        Is that a gay joke? What a little mind you have.

        • Hightide58

          Hopefully, you son will learn how to spell while he educates himself on the internet. His father obviously did not. I just get the feeling that you want your son to be a failure in life, and rotate from McDonald’s to the women’s shoe department at Dillard’s, Sears to J.C. Penny’s, and then maybe to Honest Earl’s used car lot once he acquires his education.

          • Matt thomas

            Well at least his mother taught him manners its clear your mother was a 2 $ whore

          • Hightide58

            No Matt, you are the 2 dollar whore with the advice you are giving to your son.

          • Matt thomas

            Where are you lets meet and discuss your opionions of my son in person.

          • Hightide58

            I don’t think so. I don’t feel like a b**w job right now.

          • Matt thomas

            Are you still up? Waiting for mamma to tuck u in? Ill be done with her sloppy slit soon. Let me know when you want to meet untill then cower under you covers

          • Matt thomas

            Cowards run deep on the internet.

          • Matt thomas

            Did i spell dat wight ? Coward?

          • Matt thomas

            Oh yeah ! I gotta admit now that shes here your mom is definatly worthy 3 dolla

          • Matt thomas

            Seatle washington colin day? Ill be seeing you

          • Random-11

            Spelling over the internets, really? That is your argument?

            That all you can do is smear him, complain about spelling and accuse him of homosexuality betrays just how small-minded and petty you are.

        • Guest

          Just teach your son not to drive over 68 mph. At 69 he might blow a rod.

          • Matt thomas

            One thing is for sure you arent man enough to meet me

          • Guest

            I have insulted and spat a man in the face the other day, that wheelchair freak deserved it for killing innocent babies in Iraq.

          • Matt thomas

            Hey i think we should meet and see if you a man in person or an internet coward . but i think i just answered my own question

        • Guest

          I can´t refute you even if my life depended on it… Hence I insult your masculinity over the internets, it makes me feel real smart.

          • Revolt to save America

            Guest, so easy to hide and then say how smart you are. laughable. go to bed. Please talk about things that matter, Stop fighting. How about telling us something about surviving the crash !

      • tom engel

        !! or burger flipping

    • nic

      not who you know, but who you suck!

    • OldFart

      Matt Thomas is a realistic dude, either many like it or not. This is a dog’s world unfortunately. and now, more than never. One has to be a little dog so to be able to chew the bone. What he tries to explain makes sense.

      • Revolt to save America

        Thank you OLD Fart, I agree. Survival of the fittest , NO one of you will understand until you are starving. …… Lots of people pick on ideas that are valid. TODAY you need a BS degree to work starbucks, might as well lie.

    • Revolt to save America

      I thank you for sharing and being honestly dishonest. Guess what nay sayers, when your family is starving lets see what lies you tell your boss to make ends meet. SEE sheep can’t open their mind up. Even if someone takes away a tiny little piece of info that may benefit them FROM what you said here….. more people would sleep better. Degrees don’t mean you are an automatic success, life is not fair, if you put that you went to college and can land that starbucks job for having a BA degree than you better lie. College does very little for anyone today,, WINK,,, I am the only one that respects your CANDOR.

  • wcmdeaf

    I don’t know if anyone noticed this. Last year, I filed 2013 income tax and fooled around with 2014. I played around on the Turbo Tax program. In the past, mortgage interest deduction was considered one of the reasons to buy a home. I am in my 2nd year of mortgage and I paid mostly interest. I should be getting big refund. I played around without mortgage interest deduction and got my number ($300 in red). I went ahead and applied mortgage interest deduction. The result? No change! I was like “huh? Have we been lied?” Please let me know if I am mistaken on that.

    • Guest

      My advice is to have an accountant do your income tax return.

      • sharonsj

        An accountant may not help. It all depends on your income and deductions and what the tax codes allow. I had close to $3 thousand in medical and dental costs, about 10% of my income, and it had NO effect on my taxes.

        • The Cat

          Only the medical expenses that are in excess of 10% of your adjusted gross income are deductible, and that is if you itemize.

    • Kelly

      I was under the impression you could only claim the mortgage interest if you itemized on your tax return.

    • The Cat

      Is your filing status married filing joint? The standard deduction for that may be higher than the total of your itemized deductions, which would include mortgage interest and real estate taxes.

  • rentslave

    I was 18 in 1968-and I’m still paying rent.

  • Liberty First

    These hypocritical college professors getting wealthy off the backs of our young, young adults makes me want to vomit.

  • MeMadMax

    Those homeowners are now RENTERS paying big real estate companies obscene rental rates(see: any big city especially lost angeles) for the “privilege” to live in one of their properties….

    • Priszilla

      A mortgage is just a rent paid to the bank.

  • robert h siddell, jr

    Doesn’t look like that home ownership line is going to level off in the next two years…

  • robert h siddell, jr

    A 30 year mortgage is a bankers trap because over 30 years there will probably be 3 bad recessions and Mr Bankster will get many homes back scott free.

  • Priszilla

    Well, the solution is clear: stop taxing the rich, increase the tax for the poor to 100%, imprison everyone who cannot pay the tax, and declare every prisoner a non-citizen.
    Then those percentages of honeownership and dream believers will rise.

  • Priszilla

    One solution. Learn a useful trade. Plumber, joiner, electrician, locksmith, blacksmith, butcher, etc. Then you can work in every country of the world. Now find a cheap home to work some learning years, working on your skills and making money to save.

    • laura m.

      I’ve been saying the same thing, these trades cannot be outsourced to
      China, etc./ My brothers, nephews, nieces and hubby, father in law all had useful trades some still working.

      • Priszilla

        Not only that. Expats working in China love to eat German bread, not the white soft sponge you get there. The same for Holland cheese instead of just new zealand cheddar, or australian cheddar. Or a salami, liver pate, etc.
        European butchers and bakers in Shanghai and Saigon have their customers lining up every day.

  • Akahcos

    The problem is speculators and corporations buying up property which reduces supply and increases price. I know one real estate agent who owns 6 properties. I know of flippers who own more, and corps and holding companies are also engaging in this parasitical race to quick and easy profits.

    The other side of the coin is a young couple I know that will struggle with the inflated purchase price, reducing their standard of living unfairly for decades. In the old days they shot speculators for the harm they accomplished, but today it is the standard!

  • Akahcos

    The collapse will be the result of the inability of the American consumer to buy the goods from the German, Japanese and Chinese factories. The flow of recycled dollars into US real estate and US dollar based assets from the profits of these entities is maintaining the dollar’s reserve status. When the US consumer becomes so impoverished that this cycle finally breaks, then the scheme will end and the dollar will collapse.

  • mister_roboto

    Whatever the solution is, it certainly won’t come from the forever-doubling-down cultists who support either of the two major parties. You can pretty much count on those folks to live in their particular Lala Land for the rest of their lives.

  • Dajjie

    Somewhat off topic but here it goes. We are building a new home in the mountains with money out of pocket. On the outside it looks like a finished house. However I estimate we need $50,000 to finish and move in. I’m looking at personal loans because the bank will not give me a construction loan at this pint in the process. What happens to debt like this in an economic collapse or financial resist.

    • alan

      They show up demanding payment or else. I don’t think debt jubilee will apply to a loan between two people.
      Just move in and figure it out as you go.


      similar situation as us. some repairs are optional, others are going to cost you whether or not you have the money. When the real estate agent told us 5000 dollars for a new septic, we knew better. $10,000-$20,000 is more like it. If it is a legal thing that has to be fixed, as in the case if our septic, there might be some kind of loan for it through your County. But get a ***thorough*** inspection and do your homework first,.

  • alan

    I ended up in bidding wars last fall in Colorado Springs. The agent said she had a lot of investors buying places unseen over the phone. I ended up bidding full price for a short sale and it was a mess.

    If you buy in the south its cheap, but don’t look for a job. Meth and copper wire theft is the main employment.

    I still say we will look like Eastern Europe in ten years. One car, TV, phone per house hold, multi-generations in that home.

    Zoning laws need to change, mobile homes will make a come back.

    • Jill

      Frugal households that include multiple generations are not inherently bad nor will they make the family resemble the paupers of Les Miserables. We minimized, paid off our mortgage, and have three generations in the same home. It is liberating to have so much simplicity and extra income.


    Just retired. Advice for the Young: If you want to retire before you are 50, listen up. If not, work till you drop.

    – First and foremost, LIFE IS NOT EASY. LIFE IS HARD. LIFE IS NOT FAIR. Get over it.

    – Get a government job. The pay may not be great but the work is steady. The private sector is nothing but a crap shoot and largely a waste of time. Check out the Air Force. Learn a skill on Uncle Sam’s dime. Let him pay for your living costs. Save everything you make after taxes. Make it a 30 year career.

    – At a minimum, save 30% of your gross. Pay cash for everything. Avoid debt like the plague. Higher Ed today is largely a government financed scam. 25K should be the absolute maximum you go into debt for an education. Above that, you are a Chump and the tenured profs love you!

    – Only marry someone with like ambitions. Divorce is something you really can not afford. Being single is OK.
    – Put off buying a house as long as possible. Never forget, cash is King in real estate. Renting is OK. Living in a trailer is OK. Do not let anyone dictate to you what you should do. Houses are very expensive. If possible, pay cash. The mortgage deduction is boob bait for bubbas!

    – Think outside the box. The government and the country are largely broke. Taxes and the cost of living are going to rise steeply. The old way of living has gone the way of the Dodo Bird. You will have to be resourceful, frugal and remain sober. Stay healthy. No bad habits.

    – Consider very carefully the decision to have children. The cost is astronomical. No Kids is OK.

    – Politicians are to be ignored. They lie and have only their own interests at heart.

    – Forget Social Security. You will have to wait until you are 75 to get it and be impoverished.

    – Unless you are due for a big inheritance, you are on your own.

    Good Luck!

    • brimp

      I agree with most of your points but government jobs may not be so steady in the future as the collapse progresses.

      Children are an insurance policy. You pay for them while they are young and you rely on them when you get old. By having several children you have more confidence that one of them will be financially sound enough to help you when you cannot manage your affairs. If you have no children, who will you rely upon in the last years of your life?


        I have children and they are a disappointment. No guarantee there either. Whatever security you have is up to you. I agree that in a collapse it is Jokers Wild but I would bet government work would be the last to go. Who will vote for the politicians? Out here, the government unions call the shots and I do not exaggerate.

        • liberalsSUCKobamaTESTICLES

          your children are dirtbags?

          • XSANDIEGOCA

            Not at all, silly. Far more successful than me but they have their own issues and won’t support the Old Man. I am on my own as are most.

          • nekksys

            Hence why I wish to live to a reasonable age and be mauled by a bear in my final minutes…

          • XSANDIEGOCA

            As the old combat veteran told me, there comes a time when dying is easier than living.

      • laura m.

        I’ve heard this bull for years, yet most adult children put their parent (s) in care centers as they are too busy working, travelling, etc. to worry over them. Nieces or nephews can handle affairs if nec. It’s not wise to have kids now, as the country is crapped out with iffy future for most younger folks. There are no guarantees with kids as I know at least 7 families who lost teens/ college age in accidents incl spouses second cousin and friends kids.. Parents I know kids were disappointments in various ways incl medical, drugs, slacker types , babies out of wedlock, etc. The cost of raising kids and daycare is very expensive and women have to work full time. Politicians are the scum of the earth and take grant money to do as they are told by top dogs to incl outsourcing jobs, allowing Muslim priests to pray in House of Rep. without speaking against it. 501 tax ex. churches are gov. entities and ministers are members clergy response team recruited by DHS/FEMA as informants when the shoe drops, who will turn over names of members to be rounded up gestapo style. Home church off the books or meet in groups. Ditch these apostate churches now, stop supporting them.

        • Gay Veteran

          “…allowing Muslim priests to pray in House of Rep. without speaking against it….”

          YEAH, only fundamentalist Christians should be allowed to pray in the House

          • laura m.

            Get off this site you dumb freakin’ troll; find a left wing or pro muslim site so you can fit right in. I saw your atheistic posts elsewhere. In fact, a moment of silence in the House & Senate before session is more appropriate and friends agree. Politicians are the scum of the earth and cannot be trusted/selling out the country. Now beat it and get a life.

          • Gay Veteran

            you self-righteous Pharisee, don’t you have a corner to pray loudly at?

          • Mike

            You’re calling someone else self-righteous? Haha!

          • Holger Jahndel

            Indeed, fanatical Fundamentalism against Law (National Constitution as in the USA and international Human Rights!) should be rejected clearly!

            But the New Testament does not call for violence against Humans.

            Quran, the Old Testament and the Babylonian Talmud do, unfortunately!


        • OldFart

          Ms. laura, Muslims, Blacks, Jewish, Whites…there are good and bad. We are all Human beings, as you may already know. If you are Christian, would Jesus approve your thinking?

        • Sandy

          If you turn over to the government your parental duties, you will be disappointed in your children, just as you are disappointed in your government. Educate your children yourself; bring them up well and teach them the way to live righteously. Do your duty and they will know and do their duty when the time comes to take care of you. Send them off to government institutions from a tender age, ignore them in the few minutes each day when you could spend time with them, and they will return the favor in your old age by putting you in a government institution and failing to spend the few minutes they could with you each day. The Golden Rule applies here: do unto others as you would have them do unto you.

      • Roger Smith

        I too agree with most of what you say. I would caution anyone thinking of going the government route, thinking that retirement is secure. It might not be. I remember reading a story of an Airforce Colonel, retired and on a solid pension who one day, because of massive government budgetary problems, found himself under crushing austerity measures. He initially entered retirement with a very nice home, generous monthly pay, quality healthcare, etc. One day it all came to an end. In his prime, he commanded an entire bomber wing, honoring himself and his nation, but then was relegated to living in a one bedroom, dreary apartment with his wife, where they could barely afford food and clothing. The spoiler here is that this man was a colonel in the Soviet Air Force. After 1989, everything went upside down and all was lost. Why do people in the USA feel this scenario is not possible here? All it takes is a major economic catastrophe and voila….you’re back to square one. Remember that all government promises for future delivery, are expected to be kept by someone who is right now about 7 years old…and more than likely, if they’re heading for politics, is carrying the “lying” gene.

      • Revolt to save America

        I have 4 kids and I can’t say it means that I’m taken care of, they can’t find a good job, the skills that took school are part time, I have much much more than them. I hope in my final days one is there, but they aren’t insurance plicies, they can break your heart and many sleepless nights just wondering if they are going to be ok, ………..they can be a form of hurt and worry, Heck a great niece and nephew can be as helpful .

    • Hightide58

      – Get a government job. The pay may not be great but the work is steady. The private sector is nothing but a crap shoot and largely a waste of time. Check out the Air Force. Learn a skill on Uncle Sam’s dime. Let him pay for your living costs. Save everything you make after taxes. Make it a 30 year career.

      Let’s modify this. Get a college degree before you enter the military. With all of the benefit cuts, people being forced out 5 to 6 years prior to retirement, it does not pay to enlist. If you are a natural under achiever, an enlisted military career might just be your thing.


        Good advice. Get educated then get a government job. A friend’s son was an Army Ranger and is completing Law School. I told him to get a job with the Dept of the Army or become a JAG. My wife’s cousin is about 5 years older than me. Joined the AF right out of HS. Got his Bachelors and Masters on the government dime Got commissioned. Retired after 40 years as Bird Colonel. Never Married. Invested everything. Is a multimillionaire and uses his pension to pay his income taxes on his investment income. Contrast this with a private sector job that rarely lasts, dumps you out every 5-10 years. You find yourself in your fifties, jobless and broke. Was in IT most of my career and I know many who are “on the beach”. I was able to retire only due to some timely investments. I was lucky.

    • Priszilla

      Government jobs are paid from tax or just printed money.


    From the oilfield wife: Inexpensive homes usually go hand in hand with low paying jobs and/or a long commute. In many cases the benefits of the job out weigh the fuel and time involved for travel. In our case the instability of the oil field is quickly outweighing the reduced fuel cost to actually get there every hitch. Unless you want to go “Possum Living” (good book, by the way. Use a grain of salt.) 1970’s style, no car and few material expectations, the middle class waiting for a new spin on our time tested government.

  • Rufus T Firefly

    Home ownership is so overrated.

    • Art

      and also….really like Michael’s articles.
      the sad thin though is i dont think things will ever collapse.
      i think decline is so slow over time!
      i think the ‘slowness’ gives tptb more power to do more and more fraud…(.if that makes any sense)
      I think a fast collapse with reset would everything so much better.
      this slow train wreck is so slow the train never really wrecks!
      peace to all

      • Art

        sad thing. sorry

      • Mike Smithy

        The boiling frog is probably a better analogy.

  • Mike Smithy

    In light of negative mortgage interest rates in Denmark, does anyone have any thoughts as to whether the concept will spread to the USA housing market?

  • TBonePickens

    Blame our free trade policies! NAFTA, CAFTA, and the WTO have absolutely destroyed the middle class of this nation. According to Alliance for American Manufacturing, we’ve shed 5.1 million manufacturing jobs since 2001 and lost over 63,000 factories since 2000. That is one of the main reasons why there are no good jobs here. Those trade deals did in fact create millions of jobs like they promised, just NONE of them were here in America.

    • Revolt to save America

      nafta and outsourcing has been the biggest drag on jobs,sad, so sad, and a global economy has made us compete, so our standard of living is down forever.

  • TBonePickens

    EVERYONE READ Mr. Money Mustaches blog if you want to figure out how to survive in this century economically.

  • Billzo

    Part of the problem with the college graduates these days is poor planning. Jobs/careers need to be chosen for their availability and future income BEFORE a major is selected. I know of too many students that have worthless degrees in poor paying or un-needed majors. Meanwhile they have mountains of debt. I have advised my grandchildren to select a trade over college, unless they chose the medical field. If they chose another field, I suggested that they make sure they know they will have a job when they get finished and know how much money they will make. It goes back to the 6-P’s. Proper planning prevents piss poor performance.

    • Mike Smithy

      6P’s. Good stuff.

  • liberalsSUCKobamaTESTICLES

    go on disability, live in slum housing, and eat free garbage leftover food at a church. sounds great, doesn’t it?

  • 1. Take all government money out of education and make Universities compete for students.
    2. Declare a national emergency and put a 300% tariff on all foreign goods entering the U.S.
    3. Stop government intervention with the stock market and let it implode along with the real estate market.
    Wa-La.. Jobs and Normal priced houses

    • Art

      would love that!

    • Diana Supreme

      I’d like to see it made a crime for an unnatural person – aka “fictitious person” – aka corporation, trust, etc. – to own residential real estate of any kind. Sure, there would still be rich landlords, but at least they would be able to be confronted, sued, and jailed if appropriate for misdeeds. Fictitious entities can hoard property ownership globally while being unapproachable and unaccountable for the grief and harm they cause. Real property is REAL, and so should the owners of real property be REAL and not fictitious. Everyone, please tell the Supremes that “CORPORATIONS ARE NOT PEOPLE!”

  • Peter

    I’m not sure this is correct, there has been a demographic shift. People are getting older, so It makes sense that they are downsizing. It takes two incomes to afford a home, this is a problem. With less and less marriages, and ones left wind up in divorce.
    The Reason for owning a home has changed, generally it was for raising family’s kids, and this is not happening anymore. There is a brite side Immigration, is still fueling demand. I really wish governments and industry, could react quicker to the changing demand. The 2000 square foot cookie cutters homes, although desirable in terms of taxes and sales need to change. Condo’s sales are dropping as there are too many. They don’t suit elderly that still want land to grow a garden, yet are too old to cut the grass. Or the student still struggling to pay his student loan, but could afford a small home.


    Survival is OK. Really. After 5 decades in the work force, I feel like a survivor. As far as impact on the World, I have made one. Nothing big time but I have helped people out along the way. I saved someone’s life once. Put people through school. I was told my picture will be on the mantle after I am gone. Not bad. Not bad at all.

  • bjax

    I am selling my house, as I see no point it buying it anymore. I no longer want to pay the interest back to banks, made from loans in which they just magicked the money into reality. Not only did they not have the money to lend in the first place, I now have to pay them interest on that money. It’s wrong. The other thing no one speaks about it the real cost of houses, including the 25 years of interest. That is how much your house actually cost, not what the price on the sign said.

  • A bifurcated real estate market is not healthy. 1% real estate price areas are going through the roof. Yet everything else prices falling or flat.

  • CharlesH

    I also just read today that in the next 10 years (by the year 2025) – 50% – that’s FIFTY percent – of jobs that are around today will be taken over by technology (no humans). Where are these MILLIONS (on top of the 101 million today underemployed/unemployed) of people going to work or how will they live, on what, in what, etc?? I’m older now and I’ve lived a fairly decent, honorable life but I truly feel for the younger ones coming along now and even worse for the next generation coming up. I don’t see much of any good coming their way unfortunately.

    • Jimbo

      Technology replacing jobs used to be no big deal. It has been happening since the dawn of time. A new labour saving innovation will reduce jobs, but will also reduce the price of the finished product. This means there is more money around to spend on other things like leisure (theater, eating out etc.). This creates new jobs. The combine harvester has increased grain production, reduced labour and made bread very cheap in comparison to 100 years ago.

      Were we are now though, is a point where technology has replaced a lot of skilled and semi skilled workers. Engineers type their own reports and use CAD to create drawings. Not so much need for secretaries and draftsmen. Even stock traders have been replaced by algos.

      This is why we are seeing the large gap between the rich and the rest of us and fewer good, well paying jobs.

      I want my kids to go into medicine, because I am not sure that a skilled surgeon would be that easy to replace.

  • The Iron Dream

    “Back in 1968, well over 50 percent of all Americans in the 18 to 31-year-old age bracket were already married and living on their own.”

    Yep, too much focus on the good life and nice things, too little focus on what was threatening their country and the future.

  • stephen

    We are blessed in that our daughter understands that going into debt is bad. We didn’t have the money to pay for her college but from an early age we taught her how to study. We also instilled in her the motivation and dedication to do well in school. This resulted in her getting a 4 year full ride scholarship = awesome.

    We taught her to be responsible with money (we taught her to budget at age 4). Now she is money smart, is going to have the military pay for her medical school and she sees how debt is bad.

    We are hanging on and passing on what works and what does not to her.

    I have an army pension, about $1,400 per month (enlisted), working for the state as an electronics tech and I need to work another 15 years before I can be eligible for that retirement. Had a bunch of rental properties but with the economy tanking, can’t raise rents and expenses keep going higher. Matter of fact we were told by the insurance companies that because our properties are old they will not insure the roofs anymore. So one good storm and we are toast. Currently going thru chapter 7 bankruptcy because the downturn in jobs leaves only bad tenants who have trashed a number of props and we can’t pay to get them fixed.

    The light at the end of the tunnel is, Lord willing, getting the chapter 7 and being free soon.

    Keeping faith in the Father in His word and hoping for the best.

  • JustanOguy

    Something you should know about the historical % of Americans that own homes has averaged around in the low 60’s since the 1960’s.

    All the chart above shows is the big run up of home ownership during the days when just about anybody could get a home loan with little to nothing down as long as they could breathe. The decline is when lending standards tightened up..

    While this article has some good points such as the out of control costs of going to college, a MUCH better chart to show when it comes to homeownership is:

    en.wikipedia(dot org)/wiki/Homeownership_in_the_United_States#mediaviewer/File:Historic_U.S._Homeownership_Rate,_as_of_2014.svg

  • Stansfield Bottomturner

    That’s not a bubble! That’s a pyramid, with a “P”, as in “Ponzi”.

  • Sheldon Cooper

    What a propaganda diatribe! The author styles Australia and New Zealand as “embracing free market economics”. In what parallel universe?

  • Holger Jahndel

    Why Jihad Watch?

    Why Jihad Watch?

    Why Jihad Watch? Because non-Muslims in the West, as well as in India, China, Russia, and the world over, are facing a concerted effort by Islamic jihadists, the motives and goals of whom are largely ignored by the Western media, to destroy their societies and impose Islamic law upon them — and to commit violence to that end even while their overall goal remains out of reach. That effort goes under the general rubric of jihad.

    Jihad (Arabic for “struggle”) is a central duty of every Muslim. Muslim theologians have spoken of many things as jihads: the struggle within the soul, defending the faith from critics, supporting its growth and defense financially, even migrating to non-Muslim lands for the purpose of spreading Islam. But violent jihad is a constant of Islamic history and a central element of Islamic theology. Many passages of the Qur’an and sayings of the Prophet Muhammad are used by jihad warriors today to justify their actions and gain new recruits. No major Muslim group has ever repudiated the doctrines of armed jihad. The theology of jihad, which denies unbelievers equality of human rights and dignity, is available today for anyone with the will and means to bring it to life.

    In Islamic history and doctrine violent jihad is founded on numerous verses of the Qur’an — most notably, one known in Islamic theology as the “Verse of the Sword”: “Then, when the sacred months have passed, slay the idolaters wherever ye find them, and take them (captive), and besiege them, and prepare for them each ambush. But if they repent and establish worship and pay the poor-due, then leave their way free. Lo! Allah is forgiving, merciful” (9:5). Establishing “regular worship” and paying the “poor-due” (zakat) means essentially that they will become Muslim, as these are two of the central responsibilities of every Muslim. Sahih Bukhari, which Muslims regard as the most trustworthy of all the many collections of traditions of Muhammad, records this statement of the Prophet: “Allah assigns for a PERSON who participates in (holy battles) in Allah’s Cause and nothing causes him to do so except belief in Allah and in His Messengers, that he will be recompensed by Allah either with a reward, or booty (if he survives) or will be admitted to Paradise (if he is killed in the battle as a martyr).”

    Ibn Khaldun (1332-1406), a pioneering historian and philosopher, was also a legal theorist. In his renowned Muqaddimah, the first work of historical theory, he notes that “in the Muslim community, the holy war is a religious duty, because of the universalism of the Muslim mission and (the obligation to) convert everybody to Islam either by persuasion or by force.” In Islam, the PERSON in charge of religious affairs is concerned with “power politics,” because Islam is “under obligation to gain power over other nations.”

    Violent jihad is a constant of Islamic history. The passages quoted above and many others like them form a major element of the motivation of jihad warriors worldwide today. No major Muslim group has ever repudiated the doctrines of armed jihad. The theology of jihad, with all its assumptions about unbelievers‚ lack of human rights and dignity, is available today as a justification for anyone with the will and the means to bring it to life.

    Jihad Watch is dedicated to bringing public attention to the role that jihad theology and ideology play in the modern world and to correcting popular misconceptions about the role of jihad and religion in modern-day conflicts. By shedding as much light as possible on these matters, we hope to alert people of good will to the TRUE nature of the present global conflict.

    Jihad Watch also includes content once posted on Dhimmi Watch, formerly a separate page on this site, tracking dhimmitude. Dhimmitude is the status that Islamic law, the Sharia, mandates for non-Muslims, primarily Jews and Christians. Dhimmis, “protected people,” are free to practice their religion in a Sharia regime, but are made subject to a number of humiliating regulations designed to enforce the Qur’an’s command that they “feel themselves subdued” (Sura 9:29). This denial of equality of rights and dignity remains part of the Sharia, and, as such, are part of the legal superstructure that global jihadists are laboring to restore everywhere in the Islamic world, and wish ultimately to impose on the entire human race.

    If dhimmis complained about their inferior status, institutionalized humiliation, or poverty, their masters voided their contract and regarded them as enemies of Islam, FAIR GAME as objects of violence. Consequently, dhimmis were generally cowed into silence and worse. It was almost unheard-of to find dhimmis speaking out against their oppressors; to do so would have been suicide. For centuries dhimmi communities in the Islamic world learned to live in peace with their Muslim overlords by acquiescing to their subservience. Some even actively identified with the dominant class, and became strenuous advocates for it.

    Spearheaded by dhimmi academics and self-serving advocacy groups, that same attitude of chastened subservience has entered into Western academic study of Islam, and from there into journalism, school textbooks, and the popular discourse. One must not point out the depredations of jihad and dhimmitude; to do so would offend the multiculturalist ethos that prevails everywhere today. To do so would endanger chances for peace and rapprochement between CIVILIZATIONS all too ready to clash.

    But in this era of global terrorism it must be said: this silence, this distortion, has become deadly. Before 9/11 it was easy to ignore and whitewash dhimmitude, but the atrocities changed the situation forever. In jihads throughout history, untold millions have died. Tens of millions have been uprooted from their homes. Tens of millions have been stripped of their cultural identity. To continue to gloss over the destruction wrought by jihad ideology and its attendant evil of dhimmitude is today to play into the hands of jihadists, who have repeatedly vowed to dhimmify the West and destroy any recalcitrant elements. While jihadist groups, even with their global diffusion, are not strong enough to realize this goal by themselves, they have a potent and destructive ally, a genuine fifth column, in the dhimmi academics and dhimmi journalists they have recruited in the West. They have succeeded in confusing millions in the West into mistaking honesty and truthfulness for bigotry, and self-defense for oppression.

    Before it’s too late for Western Europe and the United States, which gave birth to the traditions of freedom and equality of rights for all that shine today as lights in the entire world, this must be stopped. Therefore Jihad Watch seeks to bring public attention to:

    The plight of the dhimmis, an immense but almost completely ignored ongoing scandal that continues in Muslim countries today;

    The plight of women under Sharia provisions, similar to conditions imposed on dhimmis, in the denial of equal rights and dignity;

    Slavery in Islamic lands, which continues today, justified by Sharia-‘s dhimmi codes;

    The integral role of jihad and dhimmitude ideology in global terrorism today;

    The license that academic and journalistic whitewashes of dhimmitude gives to radical jihadist enemies of human rights for all.

    Jihad Watch fights to ensure that deeds done in the darkness for so long will not continue to be done. The light of world attention is anathema to the proponents of jihad and dhimmitude: we have seen in recent years that women sentenced to stoning for adultery, often victims of rape unjustly accused thanks to Sharia laws disallowing rape victims’ testimony, were freed following international outcry. Jihad Watch seeks to provoke similar, continuous and increasing outcry wherever and whenever the Sharia’s institutionalized injustices threaten dhimmis and women.

    May the truth prevail.

  • The American Dream of perpetually rising housing prices, suburban home ownership for all, and an economy based around auto manufacture is unsustainable from a fiscal, monetary, economic, and environmental perspective. We need to end our debt backed currency and reduce suburban population by moving more into cities and condensed towns, which do not have the debt load of suburbs.

  • Our present-day problems within the savings-and-loan indus­try can be traced back to the Great Depression of the 1930s. Americans were becoming impressed by the theories of socialism and soon embraced the concept that it was proper for government to provide benefits for its citizens and to protect them against economic hardship.

    Under the Hoover and Roosevelt administrations, new govern­ment agencies were established which purported to protect
    depos­its in the S&Ls and to subsidize home mortgages for the middle class. These measures distorted the laws of supply and demand and, from that point forward, the housing industry was moved out of the free market and into the political arena.

    Once the pattern of government intervention had been
    estab­lished, there began a long, unbroken series of federal rules and regulations that were the source of windfall profits for managers, appraisers, brokers, developers, and builders. They also weakened the industry by encouraging unsound business practices and high-risk investments.

    When these ventures failed, and when the value of real estate began to drop, many S&Ls became insolvent. The federal insurance fund was soon depleted, and the government was confronted with its own promise to bail out these companies but not having any money to do so.

    The response of the regulators was to create accounting

    gim­micks whereby insolvent thrifts could be made to appear solvent and, thus, continue in business. Thispostponed the inevitable and made matters considerably worse. The
    failed S&Ls continued to lose billions of dollars each month and added greatly the ultimate cost of bailout, all of which would eventually have to be paid by the common man out
    of taxes and inflation. The ultimate cost is estimated at over one trillion dollars.

    Congress appears to be unable to act and is strangely silent. This is understandable. Many representatives and senators are the beneficiaries of generous donations from the
    S&Ls. But perhaps the main reason is that Congress, itself, is the main culprit in this crime. In either case, the politicians would like to talk about something else.

    In the larger view, the S&L industry is a cartel within a cartel. The fiasco could never have happened without the cartel called the Federal Reserve System standing by to create the vast amounts of bailout money pledged by Congress.

  • Won’t last long

    ummm the solution is to dismantle the entire federal government. allow states to run themselves and reform a more perfect union built on the actual constitution instead of lies, deceit, manipulation, theft, war, psyops, and you name it – just ask hillary how to run a country and do the exact opposite… with a vengeance!

  • ab

    The low interest rates is causing all this mess . Because the investors buying the houses as only the solution when the banks not paying any interest .

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