American Economics Thread

[Sinnavuuty]

American Dream!!!

Part 4

https://twitter.com/i/web/status/1815365135260680630

US banks are currently sitting on more than $500 billion in unrealized losses.
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US banks close 28 branches in just ONE week - is yours affected?​

Still in the banking sector, they continue to increase and local branches continue to be closed at a frightening rate
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Evictions are rising fastest in these 5 American cities​

We are being told that home eviction filings are increasing across in the US
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Housing costs have nearly doubled in key swing states since 2020​

According to Fox Business, the “average monthly housing payment for homebuyers in swing states” has increased 92% since the last presidential election.
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Stop & Shop is closing 32 ‘underperforming’ locations. Here’s where​

Retailers are also permanently closing many locations. In fact, Stop & Shop just announced that it will close 32 supermarkets
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Walgreens Is Closing Thousands of Stores by 2027​

It's not even worth comparing it to what Walgreens is preparing to do. The plan is to close more than 2,000 Walgreens stores before it's all over, and that's bad news for those who have come to depend on the chain.
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Survey: Nearly half of small businesses say they won’t survive second Biden term​

According to a recent survey, nearly half of our small businesses are convinced they will not survive “the current economic climate, continued inflation, or another four years of Biden administration policies”…

 

[MortyandRick]

People feeling “trapped” in their current homes is just the standard American consumer being grumpy. Internal migration is rare, even during falling rate environments.

No it's not. It's a symptom of not able to afford to upgrade or move up. You can't discount negative sentiment just because it doesn't fit your narrative.

People feel trapped. They cant move up the social ladder, there's widening mistrust it the government, even more so I'm the last few years.

People see others having more and there is a sense that the system is not working for the middle class anymore.

Higher interest rate means those that want to buy a bigger house because they need to cannot do it anymore.

 

[Eventine]

Yes: for most households (~70% of them) that own their own home, an increase in house prices has no impact since they pay a fixed rate mortgage and will simply swap one house for another. Most renters aren’t looking to buy at any given moment (and rents are rapidly falling). Saying that home prices are rising is relevant only to a tiny fraction of the population at any given moment

What do you mean property taxes, insurance costs, and cost of moving to another home doesn't have an impact? Have you ever lived in a house in the US?

CPI most definitely includes home prices since home prices are what is used to calculate owners equivalent rent. Higher home prices, higher OERs, higher inflation.

Home prices have vastly out stripped increases in rent, CPI, wages, and just about everything else.

Here's a graph:

I don't even know what you're trying to argue. You're clearly not being objective as the facts are opposite of what you claim. Is it that hard to say "yes, real estate inflation is a serious problem for Americans and isn't captured in CPI?" Even Democrat talking heads who worship Biden are willing to admit that.

Americans' purchasing power is being destroyed by real estate inflation, as new house holds increasingly find themselves incapable of purchasing a home, while old house holds find themselves unable to move homes. Everyone is ultimately affected by homes not being affordable, as every historical property bubble has resulted in an economic catastrophe.

 

[PiSigma]

No it's not. It's a symptom of not able to afford to upgrade or move up. You can't discount negative sentiment just because it doesn't fit your narrative.

People feel trapped. They cant move up the social ladder, there's widening mistrust it the government, even more so I'm the last few years.

People see others having more and there is a sense that the system is not working for the middle class anymore.

Higher interest rate means those that want to buy a bigger house because they need to cannot do it anymore.

This guy never got a mortgage before. Just shows you he knows nothing.

If someone is in an open mortgage then their monthly payment will just go to servicing their interest with the high rates. If it's a closed interest, still got to renew after it expires after whatever their term is. So all those that had 2% locked in 5 years ago need to go to 5% now, good luck paying off that capital.

 

[vincent]

This guy never got a mortgage before. Just shows you he knows nothing.

If someone is in an open mortgage then their monthly payment will just go to servicing their interest with the high rates. If it's a closed interest, still got to renew after it expires after whatever their term is. So all those that had 2% locked in 5 years ago need to go to 5% now, good luck paying off that capital.

Americans can lock in their rates for 30 years, unlike the Canucks that can only do for 5 years.

 

[PiSigma]

Americans can lock in their rates for 30 years, unlike the Canucks that can only do for 5 years.

Locked in forever debt.. guess that explains a lot about American mentally. I paid off my mortgage in 7 years, exactly how I predicted. Been mortgage free (primary and rentals) forever now.

 

[CMP]

Locked in forever debt.. guess that explains a lot about American mentally. I paid off my mortgage in 7 years, exactly how I predicted. Been mortgage free (primary and rentals) forever now.

Probably 80-90% of people in the West do not earn enough to pay off their mortgage in 7 years. Even if they could zero out all their expenses aside from the mortgage for the whole 7 years, they still would not be able to reach that goal. I think your expectations and standards of normality are extremely skewed by your own circumstances. I would bet money you live in a prosperity bubble and do not understand (or care to understand) the socioeconomic challenges experienced by that 80-90% of people.

 

[HighGround]

Locked in forever debt.. guess that explains a lot about American mentally. I paid off my mortgage in 7 years, exactly how I predicted. Been mortgage free (primary and rentals) forever now.

Not everyone works in the oil industry.

 

[CMP]

Not everyone works in the oil industry.

This is what happens when "I am rich because I am awesome/smart/wise/responsible" but "the poor and indebted people are poor and indebted because they're irresponsible/stupid/lazy".

 

[PiSigma]

Probably 80-90% of people in the West do not earn enough to pay off their mortgage in 7 years. Even if they could zero out all their expenses aside from the mortgage for the whole 7 years, they still would not be able to reach that goal. I think your expectations and standards of normality are extremely skewed by your own circumstances. I would bet money you live in a prosperity bubble and do not understand (or care to understand) the socioeconomic challenges experienced by that 80-90% of people.

I do understand the poor, since I grew up poor. When I was growing up as a new immigrant, my parents rented half a basement suit with one bedroom. My "room" was the living room. Shared bathroom with another chinese family.

You know how we get rich? It's called working hard at school and work. Chinese work habits that put in 10x more effort. Get that PhD in engineering in 2 years and skip masters (my dad). Get my masters and bachelors in 5 years instead of 7.

Work my ass off so I'm the only person in a company of 20000 people that can do my job. And there might be 4 people in Canada that can do my job.

All my friends are the same type of people. I'm basically average in my group of friends. So yes, we live in the wealthy bubble and I don't give two shits about people that don't work hard to get ahead.