See other Business/Finance Articles
Title: BYPRODUCTS OF WHAT? - HALF OF ALL AMERICAN 25-YEAR-OLDS ARE LIVING WITH MOMMIE AND DADDY
Source:
[None]
URL Source: http://www.zerohedge.com/news/2015- ... arents-federal-reserve-answers
Published: Oct 27, 2015
Author: Submitted by Tyler Durden
Post Date: 2015-10-27 20:10:36 by HAPPY2BME-4UM
Keywords: None
Views: 172
Comments: 11
Back in 1999, a quarter of all 25-year-olds lived with their parents. By 2013 this number has doubled, and currently half of young adults live in their parents home. While the troubling implications for the economy from this startling increase are self-evident, and have been extensively discussed both here and elsewhere (and are among the key factors pushing both the US and global economy into secular stagnation), a just as important question is why are increasingly more young adults still living at home. While we admit there is something morbidly grotesque in none other than the Fed taking an active interest in this most devastating development (for the simple reason that it has been the Fed's own policies that have unleashed not only the $1.3 trillion wave of student debt but an army of Millennials in their parents' basement), it is the Fed itself that has been the latest to attempt an answer. Here is the Fed's response to "Why Are More Young Adults Still Living at Home?" Economist Maria Canon and Regional Economist Charles Gascon noted that many factors have been suggested for why young adults return to or continue living at home, including significant student debt, weak job prospects and an uncertain housing market. The table below breaks down the percentage of 25-year-olds who were living at home for the period 2012-2013 in each state in the Federal Reserve’s Eighth District as well as in the country as a whole. Labor Market and Higher Education One potential reason for the increase in young adults living with their parents is the labor market. The authors highlighted research showing that individuals at the beginning of their careers often need more time to transition into the labor market. This is reflected in the unemployment rates of those between 21 and 27, which are often higher than for other age groups. Earning a college degree can help with labor market outcomes, as young adults with a college degree are more likely to live independently. However, additional research has shown that the underemployment rate for recent graduates was about 40 percent during the Great Recession. Canon and Gascon noted: “An implication is that a significant portion of recent graduates were earning lower wages than what they should have been, given their education.” Also affecting many young adults is that they started their post-education careers during a recession. Canon and Gascon discussed a study noting that those entering the job market during a recession pay a price for about a decade. They wrote: “That’s because they start work for lower-paying employers and slowly work their way up toward better-paying jobs.” Housing Market The nation’s recovery may also play a role in young adults remaining at home. As the economy has grown, so have house prices. Canon and Gascon pointed out that national house prices have increased 21 percent since 2012, and rental prices have grown even faster in many areas. They wrote: “Because most youth would be first-time homebuyers, they have no housing equity to regain from the rebound in house prices after the housing crash.” In the Eighth District, housing generally remains more affordable. The authors noted that the median house costs 3.3 times the median household income nationally, but less than 3 times the median household income in most District states. Student Debt According to a 2014 survey, more than half of first-time homebuyers said student loan debt was delaying saving for a down payment for a house. A 2015 report from the Federal Reserve Bank of New York found that a $10,000 increase in a student’s average debt increases the probability of living with parents or other family members by the age of 25 by about 2 percentage points. * * * To all the 25-year olds out there reading this from their parents' basement, all we can add is that these are actually all correct. There is just one thing left to add: for all of the above you can thank, who else, the Fed for blowing the biggest debt-funded asset bubble in history. Poster Comment: ======================================================= This is what happens when all they teach you in school is how to properly use your iPhone and post on Facebook. What happens to all these homeless millennials when mommie and daddy lose their homes?
Post Comment Private Reply Ignore Thread
Top • Page Up • Full Thread • Page Down • Bottom/Latest
#1. To: HAPPY2BME-4UM (#0)
That is the question, isn't it? And what happens when the baby boomers die off, even if the arrangement lasts that long -- their kids are probably the last generation with the basement option. Only children (no brothers and sisters) will inherit the house and maybe take in a friend or 2, but those with siblings will each inherit only a fraction of the estate. Mebbe some ofthem will just stay put together -- frozen in time. I used to look at grand old houses rotting in ghettos and pity their last civilized owners as property values went to hell. Then I remembered that not even one percent of 'em ever lifted a finger to stop nigjoo supremacy.
======================================================== Quite a reflection and glimpse of what was once the american dream. We can't take it with is. U.S. Constitution - Article IV, Section 4: NO BORDERS + NO LAWS = NO COUNTRY
You should see the homeless.problem up here in montreal.... i used to think places like austin and houston had homeless issues.... here it is unreal.... ive seen people justvlay down in the street to sleep,,, cops.get called, traffic is blocked for.awhile but people.scoot around pretending nothing is wrong.. and almost every street you drive on you get your windshield.washed.with the nastiest water .... sigh..... I.still give them money sometimes.... i know im in a bad situation, but they are in worse.... some by choice but not all... some are.victims of.circumstances...... so i even though i am told not too by friends and locals,.... two dollars in there pocket may mean more to them than me... even if it is just to buy booze to.get them trough the night..... women... children..... young men, old men.... it is freaking unreal up here. ______________________________________ Suspect all media / resist bad propaganda/Learn NLP everyday everyway ;) If you don't control your mind someone else will.
Thanks for that insight. Canada has uniquely and voluntarily relinquished it's wealth to foreigners. They have 'politically-corrected' themselves into a morphed shadow of what they could and should have become - just like the usa. Western Canada is not that bad off yet I don't think. Mainly because China and Japan have heavily invested there. But I didn't know things were that bad in Eastern Canada. It sounds like any homeless ghetto you would mistakenly drive through in L.A., Chicago, Detroit, etc. Damn, I hate to hear that. U.S. Constitution - Article IV, Section 4: NO BORDERS + NO LAWS = NO COUNTRY
I was just thinking about what titorite was saying about seeing so many homeless in Canada and Neo's comment about what goes through his mind when he drives by 'grand old' mansions now wither vacated or that withered into a ghetto. You know, its quite disconcerting to see this level of poverty hitting so many so hard and such a large scale within just the past three years it seems. I know that the millennials have struggled with it since they graduated from high school (about seven to nine years ago timeframe) because they were never taught any basic survival skills or job skills in high school. Hell, most come out barely able to read or count out change. What dawned on me is I know several growing family households who live in different parts of the States (south, central, north, west) how have three or less children and have single-family combined incomes of well over $100K and they tell me they are struggling to make the mortgage, keep clothes on the kids backs, put food on the table, and eat out once in awhile. It appears to be widespread for this generation in not knowing how to deal with basic life disciplines and how to manage their money. Conversely, I know several families that 'scrape by' on less than $25K a year and seem to manage ok. But those are the ones who were taught how to stretch a dime and make ends meet. U.S. Constitution - Article IV, Section 4: NO BORDERS + NO LAWS = NO COUNTRY
An Oscar Meyer heir in The One Percent says some in the plutocrat class he abandoned are known to say they "can't get along on $50 million a year." Yeah, I come back and back to these 2 movies, because they're such a rich mine of stuff.
Bullshit. Have you ever even been to Montreal? I've been there almost every year and have NEVER seen ANYTHING at all like that. It's one of the cleanest, if not THE most pristine cities I've ever visited in my life, and people there go out of their way to be friendly. Their "low-rent" areas look like some of Boston's high end downtown areas. Oh that's right, your ex lives there so you're making it out to be a garbage dump. Pretty petty of you dude. You know, the full moon is out tonight and the loons are barking at it.
Yeah, and as usual you are a deer in the headlights. U.S. Constitution - Article IV, Section 4: NO BORDERS + NO LAWS = NO COUNTRY
We had these panhandlers hanging around on street corners and expressway ramps. One guy that hung around on the ramp near where I lived, when someone handed him a dollar, he would make like he was wiping a tear from his eye. A guy I knew that lived in the far northwest suburbs. He was in the van with his his family. They were going to the restaurant to get something to eat. They saw one of these guys on the corner and stopped. He said to the guy, "Come with us over to the restaurant and we will buy you a meal." The guy told him, "What are you nuts? I make too much money standing out here." He was a lot be better off than I am right now, that's for sure. Something more. When I worked for the State of Illinois, one of the crew cabs was parked on a ramp. A limo pulled up and dropped one of these panhandlers off. The crew cab followed the limo. They went to the next ramp and dropped off someone else. Them they went to the next ramp and dropped off another one. It was an organized SCAM. I wonder how much they had to kick back for doing the panhandling? ;) "When bad men combine, the good must associate; else they will fall, one by one." Edmund Burke
I've never been to Montreal, but I have heard that it is a very clean city. You are right about this. Montreal is unlike Chicago, New York or L.A. where there are, or used to be, ghettos. ;) "When bad men combine, the good must associate; else they will fall, one by one." Edmund Burke
#2. To: NeoconsNailed (#1)
I used to look at grand old houses rotting in ghettos and pity their last civilized owners as property values went to hell. Then I remembered that not even one percent of 'em ever lifted a finger to stop nigjoo supremacy.
#3. To: HAPPY2BME-4UM (#0)
#4. To: titorite (#3)
#5. To: titorite, neoconsnailed (#3)
#6. To: HAPPY2BME-4UM (#5)
#7. To: titorite, HAPPY2BME-4UM (#3)
here it is unreal.... ive seen people justvlay down in the street to sleep,,, cops.get called, traffic is blocked for.awhile but people.scoot around pretending nothing is wrong.. and almost every street you drive on you get your windshield.washed.with the nastiest water .... sigh.....
"After tomorrow those SOB's will never embarrass me again. That’s not a threat. That’s a promise.” – LBJ to his mistress Madeleine Brown on the eve of JFK assassination
#8. To: titorite (#3)
(Edited)
"After tomorrow those SOB's will never embarrass me again. That’s not a threat. That’s a promise.” – LBJ to his mistress Madeleine Brown on the eve of JFK assassination
#9. To: FormerLurker (#7)
#10. To: titorite (#3)
(Edited)
even if it is just to buy booze
#11. To: FormerLurker (#7)
THE most pristine cities
Top • Page Up • Full Thread • Page Down • Bottom/Latest