Prices have fallen some 33 percent since the market began its collapse, greater than the 31 percent fall that began in the late 1920s and culminated in the early 1930s, according to Case-Shiller data.
If we get any more patient we’re all going to be broke. The average American homeowner has the majority of their net worth tied up in their home, and on average, they’ve lost a third of it.
Now contrary to all the sycophants of John Maynard Keynes *spit*, I don’t want the government to do anything about this. On the contrary–I want them to stop doing anything about it. Stop printing money, stop bailing out banks, just stop! Let the markets do their job and squeeze out all the malinvestment.
Dearest President Zero–it really is about the economy, stupid! But since you’re the least knowledgeable community organizer in the room, you probably don’t get that. So how about you step out and get a hot dog after a nice round of golf and let the adults handle it for a bit?
I know it would have triggered a depression if we'd never bailed out anyone but that's what I really wish we had done. Now, I have no damn idea what to do. Instead I continue decreasing my consumption(which only feeds the depression), increasing my planting and canning, and enjoying life the best that I can.
"The average American homeowner has the majority of their net worth tied up in their home, and on average, they've lost a third of it."
This is because Americans don't understand finances – hard to do when you don't understand math, but the math involved in accounting is pretty basic.
I know it hasn't been a popular position in the last 10 years, but here is a hard truth: You should NEVER consider your primary residence to be an "investment." Actually in accounting, there is no such thing as an investment. There are only assets and liabilities. And your principal residence qualifies as a liability unless you are taking in borders, or live in one unit in a 4-flat.
I know you want acres of granite, and a bathroom you can play baseball in, but wanting something doesn't mean you are entitled. Or even that it makes sense.
I would like a 48 inch TV. I don't own one. (I don't own any TV) It doesn't pay for itself, and the cost of cable is excessive, so I make do with watching video on my laptop. (Which I also don't need, but you have to some flavor in your life.)
Guns or Butter. Security or Flavor. You have a limited amount of money. Make the most of it. Or consider which is more important? You granite counters, or your kids college fund? That whirlpool tub, or your ability to retire?
(And remember the quip about the U-Haul be hind the hearse – you can't take it with you.)