Now, the reality is homes are still way, way, way too expensive for most people at the median US wage levels to afford....so we have a conflict obviously and the answer, to increase middle class earnings, good jobs, wages....never seems to materialize on the national dialog stage.
Economists only expect a 10% further price drop in homes, still unaffordable for most people and also expect the negative equity ratio to increase to 1 in 4.
1 in 5 homeowners have negative equity
I was thinking about this the last few days and it's similar to buying a new car at 0% financing. It depreciates quickly the first year or two and the loan is probably more than the value of the car, but people aren't dumping their cars. The car basically will never appreciate but an average person just keeps paying on the loan. At least a house will often appreciate (once this recession eases off in whatever number of years it may take.)
And if you believe that
At least a house will often appreciate (once this recession eases off in whatever number of years it may take.)
Then there's a bank stock I'd like to talk to you about......it's only leveraged 300:1 loans to deposits.
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Maximum jobs, not maximum profits.