Posted on 04/21/2023 5:48:42 AM PDT by Kaiser8408a
Former Federal Reserve Chair and current Treaury Secretary Janet “The Evil Hobbit” Yellen has created numerous catestrophic messes thanks to Fed policy errors, both at The Fed and now as Treasury Secretary.
For example, the massive almost hysterical overreaction of The Fed under Powell (following Yellen’s Reign of Error) to the Covid economic shutdowns resulted in a massive surge in M2 Money growth [green line].
The result? REAL US housing prices soared while REAL averge hourly wage growth was negative for 24 straight months. THAT is the Fed error induced housing policy blunder. But it did increase the US homeownership rate (blue line).
A massive spike in REAL home prices coupled with 24 straight months of negative REAL hourly wages is hitting millenials hard. In fact, millennials are the slowest generation to hit 50% homeownership rate.
In fact, according to Apartment List, millenial rents are giving up on homeownership.
Jeder nach seinen Fähigkeiten, jedem nach seinen Bedürfnissen (German for “From each according to his ability, to each according to his needs” – Karl Marx.
Remember, the US got into trouble in the early 2000s by pushing homeownership and lowering credit standards for lower income households. It was a Clinton-era policy error called “The National Homeownership Strategy: Partners in the American Dream.” There is a video of then HUD Secretary Andrew Cuomo (yes, THAT Andrew Cuomo) saying that the US should risk higher mortgage defaults so low income households could buy a home … then default. Frankly, Washington DC should get out of the housing business altogether. But nooooo. They are now going to make things even worse.
Janet Yellen: The most terrifying person in the world!
(Excerpt) Read more at confoundedinterest.net ...
Add the new penalty fees that the occupier of the WH is going to levy on those who are financially responsible in the name of “equity” will compound the problem.
The continuing destruction of America from within.
You’ll own nothing and be happy.
“You will own nothing and you will be happy…” - WEF 🤔🤨🤦♂️
I’m in a part of our state with a low cost of living, but rent here is getting to be $1000/mo for a well-used house trailer or tiny apartment
I don’t know how young people can ever get out of moms basement with that while making 15-20 bucks an hour
This wasn’t a generational problem. Printing money is what politicians do. I cringed when the interest rate went to zero. The reason is that government can now print itself free money. The only honest Democrat, Patrick Moynihan said, “politics is about who gets how much, when.” The fact that the Babyboomer’s were around when government started printing money is not causal. Had any other generation been in power at the time printing money for free would have happened then as well.
Interest rates were too low.
Older folks would not sell a house to get a mere .1% interest rate on the sales proceeds. Absurdly low interest rates under the administration of madrasa-educated Barack Obama created a housing shortage.
When interest rates are too low, housing prices become too high. When housing prices become too high, the risk of default rises, so potential borrowers that might shaft their lender generally can’t get a mortgage. Failure to promptly pay on a student loan is a sign of a high default risk.
Paying every debt promptly tells tells lenders that you are prepared to pay on a mortgage.
In the 1980s, I simply had to pay on my student loans on time.
They are serious when they say that we will own nothing.
Bill Clinton started printing money for his pet project of bailing out Mexico from their Peso Crisis in 1994. Pull up a chart of the S&P and look how it takes off in 1994.
My sister got married to her husband Gary in 1969.
One-bedroom apartments rented where they looked (Niskayuna, NY) for about $170 to $200/month. The minimum wage was $1.65/hour.
Now $15/hour is commonly paid, so expect to pay about nine-fold more for an apartment there - $1530 to $1800/month.
An “error” generally produces something other than an intended result.
thus sayeth the generation that doesn't want to pay off its student loans that THEY took out, and want everyone else to pay for!
I’m not a Millennial and that doesn’t change the facts.
But since you posted. College, cars, homes, most things were cheap for Baby Boomers.
I have no desire to beat up on Baby Boomers but this is part of the generation’s legacy- which seems quite awful at this point in time.
It's all relative. For example, a 9.5% interest rate on my first home was NOT cheap. Neither was the college education that I paid for myself working 4 jobs to pay for, so I could graduate with a whopping $25k in debt -- in 1985. That was REAL MONEY back then, try adjusting that for inflation and see what you get in today's dollars.
What you view as "cheap" back then only looks at the dollar amount, and doesn't adjust for inflation, so nice try.
Free clue: who voted for all the "free money?" hint: wasn't just the 'boomers, pal. Today's generation thinks everything should be free: healthcare, education, food, housing, transportation -- all of it.
Your entire blame game falls flat on its face.
It’s no “error.”
The proles don’t need home ownership.
They need to be in FEMA camps where they can be controlled.
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