Where The US Is Going....

[libertad]

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

 

[gammagabber]

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%?

 

[libertad]

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......