Sunday, 27 December 2015
I have been following a number of 'indicators' in the context of false claims of an economic 'recovery.'
- One such indicator has been 18-34 year olds increasingly delaying household formation and living with their parents due to chronic unemployment/underemployment.
These numbers have been at odds with false administration claims of only 5% unemployment while actual unemployment runs about 23%.
The perennial real estate industry (NARA) claims of a looming housing recovery ring equally false.
- To a realtor "now" is always the time to buy-sell real estate, so their viewpoint is a self-licking ice cream cone.
The financial media complex/FTV has also been very bullish on the US housing market since about 2012, claiming that when the 18-34 year olds finally start buying houses, everything's gonna turn-around.... so invest in housing and real estate REIT's now, if not sooner.
- If 18-34 yo's can't get jobs, they can't afford to pay rent much less buy a house. The same is true if they are working $8/hr waitress-waiter jobs.
- So now they are living in their parent's basements past their 30's and into their 40's....and beyond.
None of these things argue for a return to a healthy housing market any time soon.
- If you believe the hype and BS you will be left holding the proverbial bag, and/or sleeping under an overpass yourself.
This reminded me of my sister, who was not only at the leading edge of these demographics, but ahead of it by several decades or more.
- She lived under our parent's roof from 18 into her 30's and beyond...way beyond, well into her 50's. Now in her 60's, her voluntary choice to remain unemployed-underemployed her entire life (when the economy was 'good') is paying negative dividends (as the economy has gone from 'bad' to 'worse) with predictable consequences...she's couch-surfing between friends.
From Theo Spark at 12:27