Debt Rattle December 15 2014
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Wyland Stanley REO taxicab, San Francisco 1924 • Santa Got Run Over By An Oil Tanker (MarketWatch) • U.A.E. Sees OPEC Output Unchanged Even If Oil Fal
[See the full post at: Debt Rattle December 15 2014]Robert Schiller – “Maybe neighborhoods are not as important. Or maybe there’s an urbanization trend going on.” Ya think? There haven’t been neighbourhoods for a long time now, not like there used to be when we grew up. The younger kids have not known them. A good portion of them, because of divorce, have been shuffled from daycare to whichever parent has them that day/week/month. They’ve seen their parents suffer from taking on too much mortgage.
Plus, prices are just way too high, an expected side effect of too much free money from the Fed chasing appreciation. Same with commodities, everything. It’s all phantom. I’m going to recommend my child sacrifice and buy high for what? Not on your life. You might as well be renting, especially when there’s so much down side when prices do crash. When you buy high, you’re just renting from the bank anyway. And when prices crash, they’ll be renting anyway, so they might as well be renting all along. Prices need to come way, way down before I’d ever recommend it.
Plus, kids are not forming families as readily as we did. They’ve seen their parents on the treadmill, and they don’t want any of it, and why would they? It’s not so great. From what I’ve seen, they want a less complicated life. Yes, lots of technology, but less debt hanging over their heads. Perhaps because their jobs are not secure.
They just don’t buy into the house with the white picket fence, three kids and a station wagon like our parents did, like we did.
I was checking out Schiller on line a few weeks ago. As far as I can see, the guy is deeply entrenched in the elite banking/financial world. I’d take whatever he says with a grain of salt.
“Finally, I want to stick a fork in the claims of the “big oil tax cut” for Americans. Let’s assume you’re Mr. Average and drive 15,000 miles a year. Let’s further assume you have a moderately-new car (Cash for Clunkers did that for you, right, even if you have an 8 year loan on that car!) and thus you obtain a moderately-decent 25mpg on average.
You thus burn 600 gallons of gas a year.
While the price of oil has been cut in half (as has /RB, for the most part) the price at the pump is not, because most states tax on the number of gallons sold, not on the price of the sale. The average of those taxes is about 53 cents/gallon, so the real cost decrease to you is from about $3.25 this time last year to about $2.50, or about a 25% decrease.
Last year that 600 gallons cost you $1,950. This year it’s $1,500, or about a $450 decrease over the year.
That is, it’s a “massive” $37.50 a month, which admittedly is a decent amount of money but for most people it simply isn’t that material to their family financial situation.”
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