noddy wrote:.
this is an australian article however various aspects of it relate to the entire western world, barring the fact we havent had our housing collapse yet.
tldr; its younger people who are stuck in this silent recession and all the gains are for the entrenched, older, upper middle.
this isnt corporates or bankers, its our society and the willful eating of the young to prop up the unsustainable now.
http://www.macrobusiness.com.au/2016/03 ... n-screwed/
It’s not just the property problem that has Gen Y banging their heads against the wall; it’s the deadly cocktail of an increasingly casualised workforce, increasing debt, disappearing manual labour work and a “grey ceiling” of older workers who refuse to budge from senior positions in the workforce that is shaping a bleak future for our second-youngest generation.
“When you look at the data, you’ll see that wages have grown twice as fast for people over 50 than under 30, and that one in six people are unemployed as compared to one in 30 back in the 1970s,” Dr Rayner said…
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From the link
- House prices - weekly earning.jpg (32.75 KiB) Viewed 1663 times
noddy , this now the case in Northern America too.
and
I
strongly suspect, this a trap .. a big bear trap that when snaps will cause big recession, devaluation.
Reason for this thinking is, now, pretty much all houses are owned by "baby boomers" or older.
When they begin to pass away, next 10+ yrs, the new generation with those "weekly wages" can not afford to buy those houses, they do not qualify for mortgages for those high prices.
Yes, the houses pass to the children, but the children can not afford to hold to them, obliged to sell and divide the proceed between siblings .. there will be no buyer waiting
That will lead to a glut, house prices will drop dramatically to level that next generation would qualify (for mortgage) to buy them.
Already happening, but will snowball next 10+ yrs .. I have witnessed a few such cases
Things a bit distorted as Chinese buying, but, if they stop buying, deep discount will follow.
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