Where The US Is Going....

Discussion in 'Economics' started by libertad, Nov 19, 2008.

  1. Average Home Price
    $70,000

    Average Down Payment
    $20,000

    Average Car Price
    $17,000

    Average Down Payment
    $4000

    Universal Health Care...USA

    Education...
    Internet Based......Every thing else is cost prohibitive

    Average savings rate....10%
    Debit Cards Only
     
  2. I would argue if the average home price is $70K then the average car price should be $7K as most own cars that are about 10% of the value of their homes?

    The other problem with a $70K house is that with the current cost of materials you can't build a house that cheap, therefore your suggesting that the economy as a whole needs to contract about 50%?
     
  3. Good response....

    You clearly understood the message.....

    ................................................................................

    Another way to look at it.....

    Once upon a time........

    Average credit available house....
    $200,000

    Average credit available car....
    $40,000

    Avergae credit card available
    $8000

    ..............................................................

    Average total credit available

    Approx $250,000

    ............................................................

    The New Deal

    Perhaps a combined $100,000 credit available
    and under stricter terms.....
    ........................................................

    The implication ?

    Deflation takes hold or nothing sells.....

    What will $100,000 buy ?

    If it buys the comparable...then prices fall by
    approximately 60% across the board.......

    .................................................................

    Why did this happen ?

    The multiplier effect of losses of many $ trillions by all.....
    Which would have not happened if subprime holdings had not been levered by banks......