That's the way inflation and growth works, it's not constant. Also, don't argue with math.
Boomers cant afford they houses. boo hoo
- Thread starter Dr.bannedman
- Start date
That's the way inflation and growth works, it's not constant. Also, don't argue with math.
I argued with math all the time. Specifically when I took Math 317.
I still don't know how I passed Calc I, Calc II, Diff Eq, and Calc based physics.
I still don't know how I passed Calc I, Calc II, Diff Eq, and Calc based physics.
Those first three aren't that bad. When you start pulling out "Proofs" I start wanting to argue with Math.
Love the schtick @internetman. If only you could convert laughter into cold hard cash, we'd both be wearing gold diapers.
I still don't know how I passed Calc I, Calc II, Diff Eq, and Calc based physics.
317 was my final non-ME elective. Took it my last semester. Somehow managed to be at an A going into the final. Which was at 7:30 AM on Friday. I had one other final that semester, which was Monday at noon (crushed it). Friday rolls around, I walk in basically assuming that I'm going to fail because I was graduating and nothing could stop me, but personal pride made me care about my grade. Prof starts teaching a lecture! During the final period! After an hour, he says, OK, here's the final, if you're happy with your grade, leave it blank, write your name on it, hand it in, and leave.
Talk about a dirty trick.
I had one final where the prof didn't like people missing his tests so any missed tests would get a zero and he would take 5 additional points off of your grade. I figured out that I could miss the final and get an A except I couldn't afford the 5 additional points. So I showed up for the final, filled in the C bubble on every question and turned in my test after 5 minutes. Everyone thought I was crazy but I had plenty of review time before my next final.
Might as well name some names here.
-- existing homeowners that want their current homes to appreciate in value
-- contractors that want to build and finish out homes and benefit from people taking out home equity loans for home improvement purposes (with the MID)
-- real estate agents that want to sell them (at as high of prices and volume as possible, given their commission depends on both of those things for them)
-- commercial banks that want volume on loan origination fees
-- investment banks that want to buy up the loans and bundle them into financial products
-- institutional investors that want to buy these financial products because they offer, at least on the surface, good returns at very low levels of risks... auditors love that
-- ratings agencies that want a high volume of securities to grade (for a fee)
-- insurance companies that want to cover that exotic debt
-- low-income housing advocates who, even with the best of intentions, want people in homes no matter the socioeconomic or demographic fundamentals driving it
-- politicians who want to point to increasing rates of homeownership and home equity values, promising to deliver on that 1950s white fence "every man a king" nostalgic dream that we cannot move on from as a society somehow
-- the educational establishment, and mostly teachers' unions, that want high property values for the sake of high property taxes, which mostly accrue to their members
The above is one hell of a political coalition.
It is just a hugely regressive transfer of income.
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I've made a career out of being in touch with my emotional intelligence. Used to be a CPA grinding out financials or tax returns and can't recall a single happy day. Once I gave into my softer side I realized I can do things and create value that nobody else can. The BEST part is there are a few people in the chain above me who value my skills as well.
if you can definitively say if we invest-or-discover math i'll listen to you.
but yeah, maybe math is right, but it's application is often wrong. if you earn $20k/year and I earn $180k/year, our average might be $100k/year, but that doesn't really paint an accurate picture.
Pretty solid list. Add to it:
Every manufacturer of any product (and likewise their industry groups) used to build and equip homes.
....and the big ones - cities.
Post WWII, cities starting plotting out their new neighborhoods to include homes with larger yards and only single family housing...and seas of parking for the commercial interests. Of course it met demand - who doesn't want more elbow room? The problem, the sprawling development pattern requires more infrastructure (above and below ground) to service it with fewer tax property paying entities per acre....oh...and it stretches out the area that must be covered by fire and police as well..
The only way to pay for all that unproductive space was to keep building new and more on the edges....and then push those edges out further and further. Sound like a ponzi scheme to anyone?
What happens when the next wave of home buyers don't want to live in the McMansion on the edge of the city and thus demand goes the other way? We are starting to see that play out...
Hey you two forgot the other side of the equation.
Appraisers
Appraisers E&O companies
Hmm..... on second thought I might be as dumb as some people on here suspect.
Everyone loves inflation. This is why Central Banks are deathly afraid of deflation. I used to think that the FED and its expanding balance sheet was the main driver of inflation. But really it is the banks and the creation of money through fractional reserve banking. Every time a person buys a new home it creates a bunch of money that didn't exist until closing.and then poof, big checks for everyone involved. Well really all of those involved who make commissions. This is the driver of credit expansion cycles. It continues just fine until eventually the incomes can't keep up with ever expanding interest payments.
Isn't that basically an average? I'd guess a smallish number of people are carrying the average.
