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What happened is that the dollar has been devalued to the hilt and its devaluation (i.e. printing of money, issuing of debt) was used to prop up the most "connected" (corrupt) sectors such as healthcare, housing and farming, which also happen to serve the essential needs of everyone. Gotta wait til the next crash.
Ceffer
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2015 Apr 26, 9:44am
300 percent more people crowding into the coastal areas than when grandpa was around?
Dan8267
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2015 Apr 26, 11:05am
300 percent more people crowding into the coastal areas than when grandpa was around?
True, but those 300% more people are still each 4 times as productive leading to 1200% as much wealth, so it does not explain the drop in quality of life.
Dan8267
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2015 Apr 26, 11:08am
What happened is that the dollar has been devalued to the hilt and its devaluation
True, currency debasement steals wealth from the poor and the middle class and gives it to the rich, but for the guy living paycheck-to-paycheck that doesn't matter because he has no savings. So it still does not explain why the grandson can't live off his salary doing the same thing that his grandfather did and raised a family with.
Bellingham Bill
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2015 Apr 26, 11:51am
It's not the devaluing dollar, the Trilateral Commission, or teh joos that is causing high real home prices in LA, it's simply supply & demand unbalance aka Market Failure.
Housing is *the* major life expense, and all this money isn't going into just the sticks & bricks but rather the actual deeded exclusive perpetual (for fee simple tenancy) right to use the land and housing good itself. To secure this right one has to outbid everyone else who wants this deeded right, and supply is limited if not fixed and demand is unbounded (everyone would like to own the whole world if they could).
The good side of the LA basin got filled up before I was born, and I'm getting old now!
There's been a lot of infill development, but not enough!
What I rented for $700 in 90025 in 1991 now rents for $2300! This is simply because supply of quality housing (or even shitty housing) hasn't kept up with Gen Y arriving on the rental market. Gen Y really started rolling in 1990, so they're turning 25 this year. The median Gen Yer is age 22!
Complicating matters is that since I last lived there in 1992, the crappy neighborhoods -- 80% of the land area -- have expanded more. Downtown has gentrified a bit but not enough to make a difference in the supply picture.
It's not the devaluing dollar, the Trilateral Commission, or teh joos that is causing high real home prices in LA, it's simply supply & demand unbalance aka Market Failure.
2008 the rents dropped to almost half of what they are today, same for house prices. Sure there is a growing population, but it's effects are lesser on the price (more people will live under one roof then). Can't spot the bubble? When the Fed announced they were buying MBS for an unlimited time until further notice and depressing rates to near zero that was a starting short for the big boys as well as small speculators to bid up houses again, roll over the debt for next to nothing until they get their desired payout, and for the banks to give mortgages to everybody, putting immense pressure on this sector. Without the MBS purchasing program and 6%+ interest rates house prices and rents would look much differently. The dollar was purposely devalued to support a few sectors.
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Reddit
What happened is that, despite worker productivity quadrupling, the distribution of the wealth has shifted so far away from the wealth producers and to the owner class that it more than offsets the increase in productivity.