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
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%?
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......