Thursday, August 11, 2016

Declining Standard of Livings Sowing The Seeds of The Next Crisis

News
International capital flows looking for diversification and safety in high-end US real estate, have lifted the average selling price of homes since 2009. The middle class, squeezed by years of declining standard of livings through a deadly cocktail of rising taxes, falling services and benefits, and stagnant high-end job creation and wage growth, do not benefit from this type of recovery. A majority forced to rent rather than own their homes and watch a select minority get "rich" is fueling rising social discontent and the trend from cooperation to separation across America. Neither Hillary or Trump can reverse these trends.

Headline: Lopsided Housing Rebound Leaves Millions of People Out in the Cold

The housing recovery that began in 2012 has lifted the overall market but left behind a broad swath of the middle class, threatening to create a generation of permanent renters and sowing economic anxiety and frustration for millions of Americans.

Home prices rose in 83% of the nation’s 178 major real-estate markets in the second quarter, according to figures released Wednesday by the National Association of Realtors. Overall prices are now just 2% below the peak reached in July 2006, according to S&P CoreLogic Case-Shiller Indices.


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