Housing Bubble, credit bubble, public planning, land use, zoning and transportation in the exurban environment. Specific criticism of smart growth, neotradtional, forms based, new urbanism and other top down planner schemes to increase urban extent and density. Ventura County, California specific examples.
Monday, January 08, 2018
Sorm Clouds Over Burn Area
Camarillo looking north 08 Jan 18. Click to enlarge.
A short break in the system brought out this interesting cloud pattern.
I am getting nervous. Way too much money chasing too narrow a range of items. Stocks and houses being in that small cadre. What happens when someone does the math and finds out all those boomers are going to be selling their stocks and houses for the next 20 years starting.... Starting when is the big question. Crowded exits.
They can do anything they like with our money. They both have good jobs. Son about to have a kid. And bought a very nice house in cold Champagne. Architect daughter designed and had her house built. I give them small chunks of money from time to time. Financial advisor wants us to save more money for this purpose. Nah. If they or the new baby needed medical money, of course.
If 30.4% are negative and the average positive wealth is $78K, What is the multiple do you have to not be middle class? X2 X10 X20, ECT? Net,Net, I am not middle class. I live like it easy and happy.
So. The "baby" needed a new phone to replace the ancient and cracked iPhone 5. Middle class means we shopped and then bought the best deal with no regard to whether the purchase would be cash or payments. Middle class means being able to plan and execute things like that.
The son's loan payment is about the amount of a car loan, and he paid his car off. After he works for the VA for 10 years, 7 or so left the balance goes away. Full Medical insurance for.him and wifey and a good ish salary and diability payments. It may be a cage, but it's a golden cage.
I can't help but believe most student loan money was misused. Many have payments as low as a car payment. I see a self inflicted debt problem. Our kids never paid for college except gas, clothes, spending money earned during summer and breaks.
Our newly weds have her condo paid off in a couple of years and his house is paid for.
LL, your son may fall into that category but he is working it off. Really good deal for him.
>What happens when someone does the math and finds out all those boomers are going to be selling their stocks and houses for the next 20 years starting.... Starting when is the big question.
I've been wondering that too. I'm pre-boomer by about 5 years and I've already sold some stocks. (And thereby missed some of the big gains over the last year. But such is life).
>If 30.4% are negative and the average positive wealth is $78K,
Don't know how to interpret that exactly, but I'm assuming the negative net wealth is factored in the average wealth calculation to get the $78K. But anyway, as Mish points out, $78K is less than it was in 1989, and $78K isn't worth what is was in 1989.
Also has a program with matching. Something like an ira, pension. I think he'll be up to that 78$ in a couple 3 years. Plus his mtg is being paid down, fastish, with a very low interest rate.
LL, He's doing great. Totally predictable that the middle class soon will need to be renamed the Credit Class. Income for a long time has been supplemented with credit. The true middle class is fading by old standards. IMO
We wake to a neighborhood in Montecito where entire houses have been swept away. Several postpone missing. Massive mandatory evacuation area. Trained dogs searching for survivors. 101 closed between Ventura and Santa Barbara.
43 comments:
The Gloddess does not love Kali.
People are beginning to talk about the stock market like they did houses, always going up. Bad.
I am getting nervous. Way too much money chasing too narrow a range of items. Stocks and houses being in that small cadre. What happens when someone does the math and finds out all those boomers are going to be selling their stocks and houses for the next 20 years starting.... Starting when is the big question. Crowded exits.
My kids might sell my investments, then again if I taught them well they will extract the income, maybe sell and reinvest.
Now. Although, I have no intention of selling unless they drag the hub out by the feet. I can't take care of the house by myself and I know it.
They can do anything they like with our money. They both have good jobs. Son about to have a kid. And bought a very nice house in cold Champagne. Architect daughter designed and had her house built. I give them small chunks of money from time to time. Financial advisor wants us to save more money for this purpose. Nah. If they or the new baby needed medical money, of course.
You can only teach them, results may vary. :)
The Market is long over due for a correction. Hopefully it slowly ratchets down with a new higher bottom to build. I'm Rich! =:0<-<
Yep
Nah, it's Dawg that's rich. We are merely upper muddle. (Hehehee, middle)
Rich? We aren't even renting a car when we go to Hawaii in three weeks.
What's Rich? Mish has a look today at the level of negative wealth.
https://www.themaven.net/mishtalk/economics/median-family-net-worth-under-1989-level-debt-to-money-worst-since-62-cwXTp9wGcEutEtpQXgNd0A
If 30.4% are negative and the average positive wealth is $78K, What is the multiple do you have to not be middle class? X2 X10 X20, ECT? Net,Net, I am not middle class. I live like it easy and happy.
So. The "baby" needed a new phone to replace the ancient and cracked iPhone 5. Middle class means we shopped and then bought the best deal with no regard to whether the purchase would be cash or payments. Middle class means being able to plan and execute things like that.
You are cheap and rich
He's rich because he's cheap.
p.s.: I love my "ancient" iPhone 5.
Extravagantly Cheap. :) I think you are rich if you are not stressed and happy. Money provides the security to do as you wish.
I phone7, I pod, I pad, and yes "I Paid" cash. LOL!
I bet negative net worth gets worse before it gets better. Student debt then student debt brought into household formation. Or delaying formation.
We "Save up". We have had money for a roof for 6 months now. I think we have a roofer. I hope we have a roofer.
The son's loan payment is about the amount of a car loan, and he paid his car off. After he works for the VA for 10 years, 7 or so left the balance goes away. Full Medical insurance for.him and wifey and a good ish salary and diability payments. It may be a cage, but it's a golden cage.
So he might be a negative balance person, due to the school loans, but as long as he works for the VA, it's as if they don't exist.
I can't help but believe most student loan money was misused. Many have payments as low as a car payment. I see a self inflicted debt problem. Our kids never paid for college except gas, clothes, spending money earned during summer and breaks.
Our newly weds have her condo paid off in a couple of years and his house is paid for.
LL, your son may fall into that category but he is working it off. Really good deal for him.
>What happens when someone does the math and finds out all those boomers are going to be selling their stocks and houses for the next 20 years starting.... Starting when is the big question.
I've been wondering that too. I'm pre-boomer by about 5 years and I've already sold some stocks. (And thereby missed some of the big gains over the last year. But such is life).
>If 30.4% are negative and the average positive wealth is $78K,
Don't know how to interpret that exactly, but I'm assuming the negative net wealth is factored in the average wealth calculation to get the $78K.
But anyway, as Mish points out, $78K is less than it was in 1989, and $78K isn't worth what is was in 1989.
"Average" wealth is a serious misuse of math. It is median wealth that is likely half the $78k figure. The top few percent massively skew the average.
Check out Dustin Jordan's drive near ace. #1 shot of the week
https://www.pgatour.com/video/2018/01/08/dustin-johnson-s-near-ace-from-over-400-yards-leads-the-shots-of.html
>The top few percent massively skew the average.
True, median wealth may actually be near $0.
Possibly even 47% have negative net worth. ;)
Just noticed, the Mish article says the $78K is median (not average) net worth.
Thanks for checking.
I think so
She's 3 months pregnant too!!
Hahahaha
Also has a program with matching. Something like an ira, pension. I think he'll be up to that 78$ in a couple 3 years. Plus his mtg is being paid down, fastish, with a very low interest rate.
Should I down load the free scanguard for Android?
Good Morning!
Ooops my mistake. Always get that confused. Still the question is Define the term Rich.
LL, He's doing great. Totally predictable that the middle class soon will need to be renamed the Credit Class. Income for a long time has been supplemented with credit. The true middle class is fading by old standards. IMO
We wake to a neighborhood in Montecito where entire houses have been swept away. Several postpone missing. Massive mandatory evacuation area. Trained dogs searching for survivors. 101 closed between Ventura and Santa Barbara.
Check out the home prices in the mud flow neighborhood in the new post.
Pythons frozen!!
Wow.
I knew you'd love the sky iguanas and frozen pythons story.
I kinda like iguanas.
>Still the question is Define the term Rich.
It's defined ad hoc for the convenience of the person doing the speaking/writing to make their point.
We all do it.
The kind of rich I know say things, like comfortable, making do or getting by. I think it is so they don't alienate those of us in Liz' muddle class.
Looks like New England is about to get glazed over with a moist system followed by a snow freeze. Saturday unless it speeds up.
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