Archive for the 'credit crisis' Category

How many McDonald’s jobs does it take to purchase a California home? 10 to 25 percent price decline over the next five years will prove to be optimistic. Can Americans stomach a second housing crash?


The lost generation and merging of credit bubbles – College graduates go into massive debt and enter a low wage job market. Median starting salary for the class of 2010 is $27,000. Student loan debt soaring while wages decline and delay a generation from buying homes.


Subprime colleges – Student loan debt now equivalent to 7 percent of U.S. GDP. For-profits claim Harvard bragging rights and that barbers can make $150,000 to $250,000 a year to lure students.


The 20 year Japanese bear market in real estate is making its way to the United States. Home prices in the U.S. are now in a double-dip and have gone back 8 years. Lower paying jobs, higher expenses, shadow inventory, and big government spending all align with a path of real estate malaise.


Financial land of perpetual bubbles – California technology, real estate, and now higher education bubbles. In 1980 the median California household income would have purchased 17 UC bachelor’s degrees. Today it can barely purchase one UC degree.


Financial timeline of 10 events from the Great Depression and parallels to our current economy: Lessons from the Great Depression Part 31. When government and financial institutions become one.


The education of the housing market – Student loan debt and falling birth rates slow demand for the first time buyer market. The consequences of keeping young professional priced out of the housing market.


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© 2012 Dr. Housing Bubble