Mish's Liberation
Mish's GET Analysis quotes the North County Times on Liberation: "The median detached home in North County costs $644,899, and costs $3,815 a month, including principal, interest, property taxes and insurance. It costs nearly $24 an hour to pay that amount, assuming an eight-hour day, 40 hours a week and four weeks to the month: Food, transportation, utilities, rent and other expenses are not included."
Mish then finish's the job with flourish: It seems to me the NCTimes is describing a significant structural problem. The median home, not counting food, transportation, utilities, rent, etc, costs more than most people make.
My biggest gripe, however, is the idea that people are "liberating money" by extracting home equity only to go deeper in debt. My idea of liberation is paying off my house and having cash savings in the bank...
When the upcoming consumer led recession hits, those deep in debt facing slumping housing prices are going to feel more like debt slaves than they will liberated. Liberation is being out of debt not the opposite.
We could not agree more, excepting the notion of a deep recession, which we are still up in the air about and reserve as a TBD item.
Mish then finish's the job with flourish: It seems to me the NCTimes is describing a significant structural problem. The median home, not counting food, transportation, utilities, rent, etc, costs more than most people make.
My biggest gripe, however, is the idea that people are "liberating money" by extracting home equity only to go deeper in debt. My idea of liberation is paying off my house and having cash savings in the bank...
When the upcoming consumer led recession hits, those deep in debt facing slumping housing prices are going to feel more like debt slaves than they will liberated. Liberation is being out of debt not the opposite.
We could not agree more, excepting the notion of a deep recession, which we are still up in the air about and reserve as a TBD item.
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