I know I thought I was drunk reading your post...
30% of 21 to 34 year-olds now live back with Mom & Dad
- Thread starter mpd
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I know I thought I was drunk reading your post...
Lots of loans and no jobs. The college subprime bubble.
The First Crack: $270 Billion In Student Loans Are At Least 30 Days Delinquent
The First Crack: $270 Billion In Student Loans Are At Least 30 Days Delinquent
Back in late 2006 and early 2007 a few (soon to be very rich) people were warning anyone who cared to listen, about what cracks in the subprime facade meant for the housing sector and the credit bubble in general. They were largely ignored as none other than the Fed chairman promised that all is fine (see here). A few months later New Century collapsed and the rest is history: tens of trillions later we are still picking up the pieces and housing continues to collapse.
Yet one bubble which the Federal Government managed to blow in the meantime to staggering proportions in virtually no time, for no other reason than to give the impression of consumer releveraging, was the student debt bubble, which at last check just surpassed $1 trillion, and is growing at $40-50 billion each month. However, just like subprime, the first cracks have now appeared. In a report set to convince borrowers that Student Loan ABS are still safe - of course they are - they are backed by all taxpayers after all in the form of the Family Federal Education Program - Fitch discloses something rather troubling, namely that of the $1 trillion + in student debt outstanding, "as many as 27% of all student loan borrowers are more than 30 days past due." In other words at least $270 billion in student loans are no longer current.
That this is happening with interest rates at record lows is quite stunning and a loud wake up call that it is not rates that determine affordability and sustainability: it is general economic conditions, deplorable as they may be, which have made the popping of the student loan bubble inevitable. It also means that if the rise in interest rate continues, then the student loan bubble will pop that much faster, and bring another $1 trillion in unintended consequences on the shoulders of the US taxpayer who once again will be left footing the bill.
From Fitch:
Why is the bubble starting to pop now?Actually, no: the unemployment for 18-24 year olds is 46%. Yup: 46%.
A month ago, Zero Hedge readers were stunned to learn that unemployment among Europe's young adults has exploded as a result of the European financial crisis, and peaking anywhere between 46% in the case of Greece all they way to 51% for Spain. Which makes us wonder what the reaction will be to the discovery that when it comes to young adults 18-24) in the US, the employment rate is just barely above half, or 54%, which just happens to be the lowest in 64 years.
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longearedfriend
mass killings and suicides
what else could you expect from this concrete jungle
what else could you expect from this concrete jungle
reading trough some of these posts makes me glad it isn't as bad around here, but it does strenghten my motivation for learning to grow my own food, that way no matter what happens, even if I become homeless, at least I will have food.
and I could shave down on livingcosts
and I could shave down on livingcosts
your all a bunch a freeloaders!!!! Get a haircut and get a job...damn hippies....LoL
Its true unfortunately. I recently graduated college with a BS in Business, was fortunate enough to land a job with Verizon making 50k a year. Most of my piers are living at home, with no hope in sight.
Times are tough indeed, gotta make sacrifices (aka joining the military, going back to school, moving to where the job growth is) if you want to make it in today's shitty economy.
Me? Ill probably join the military, but at least ill be flying helicopters !!
Times are tough indeed, gotta make sacrifices (aka joining the military, going back to school, moving to where the job growth is) if you want to make it in today's shitty economy.
Me? Ill probably join the military, but at least ill be flying helicopters !!
You might want to rethink that helicopter thing...a moving target is still a target. Getting shot down over Iran for Goldman Sachs of America would really suck, particularly if you're still alive.
My daughter works for a big telecom and while everyone else is getting laid off and getting hour cutbacks, her company is hiring and she's getting raises and promotions.
I'd stick with Verizon. Someone handing you money instead of lead is a better deal. Even if the money will be worth the same soon.
Turn it into gold.
My daughter works for a big telecom and while everyone else is getting laid off and getting hour cutbacks, her company is hiring and she's getting raises and promotions.
I'd stick with Verizon. Someone handing you money instead of lead is a better deal. Even if the money will be worth the same soon.
Turn it into gold.
Grobot2010
Member
The barrier to entry into so many areas (housing, education, vehicles, etc) for the current generation is a completely different reality from what previous generations dealt with and forget about getting any sympathy from them, because they didn't have to deal with it and never will, so bottom line is... they don't care what those items cost, for the most part.
The only expense that is sending up big red flags on older generations' radar screens is healthcare... they are starting to need it and they can't stomach the price tag that it demands... so government is now ramping up its involvement in that area too.
The only expense that is sending up big red flags on older generations' radar screens is healthcare... they are starting to need it and they can't stomach the price tag that it demands... so government is now ramping up its involvement in that area too.
Man, ya'll serve cheese with that whine? EVERY generation blames the one before it for their hardship. Blaming is so easy. De-Nile ain't just some big river in Egypt. Ever hear "drop your cocks and pull up your socks?" I do empathize with hardship but blaming boomers is way off and has absolutely nothing to do with making anything better. I'm sure sick of the fucking whiny-ass attitude. Exactley how is bitching and barking up the wrong tree help anything?
Grobot2010
Member
Who said anything about boomers? Got a complex? We all live under the regulations, laws, etc. set up by the generations prior to us. If I had lived immediately post-generation-1776, then I'd be raving about the situation that the prior generations set up by taking on the idea of revolution and running with it to set up a society based on freedom and liberty.
But that's simple not the case.
But that's simple not the case.
average cost.......1955................2010 ...............% increase
new house.......$10,000...............$250,000...............2500
gas..................$0.23.................$3.00....................1300
new car............$2000................$28,000 ...............1400
average wage.....1955 ...............2010
.......................$4,100 ...............$26,500 ...............600
considering we have become more of a state controlled society and less a free market, and also considering that the boomers are the people who voted for people who promoted all the state intervention, who else is there too blame...
not that we weren't already on the wrong path
new house.......$10,000...............$250,000...............2500
gas..................$0.23.................$3.00....................1300
new car............$2000................$28,000 ...............1400
average wage.....1955 ...............2010
.......................$4,100 ...............$26,500 ...............600
considering we have become more of a state controlled society and less a free market, and also considering that the boomers are the people who voted for people who promoted all the state intervention, who else is there too blame...
not that we weren't already on the wrong path
ZoSo
Member
23. Making 12 bucks/hr right now in computer production. Living at home.
I have some college under my belt and I do have plans to finish but it's a little hard to get the motivation (cost/reward) when half my co-workers have degrees and make the same money I do.
Just biding my time for now. Trying to enjoy life.
Can't move anywhere. Gotta pay the bills here until my mom reaches retirement age (she has other funds they are just tied up in real estate right now). I'm not complaining. The house is paid off.
It's a little more complicated than the above but that's the jist of it. I have it good compared to many.
If the economy doesn't completely go to shit then I see myself making 100k+ in 10 years. Don't see how or why, I just know. Don't wanna toot my own horn or anything but I'm just too damn smart not to be successful. I won't accept anything less. And whether I need it or not, I'm getting that degree.
I was on the fast track for a while there, but then my father died and I got a big dose of real life. Then the economy took a dive. But hey, shit happens. Just gotta make the most of it.
Good luck to everyone.
I have some college under my belt and I do have plans to finish but it's a little hard to get the motivation (cost/reward) when half my co-workers have degrees and make the same money I do.
Just biding my time for now. Trying to enjoy life.
Can't move anywhere. Gotta pay the bills here until my mom reaches retirement age (she has other funds they are just tied up in real estate right now). I'm not complaining. The house is paid off.
It's a little more complicated than the above but that's the jist of it. I have it good compared to many.
If the economy doesn't completely go to shit then I see myself making 100k+ in 10 years. Don't see how or why, I just know. Don't wanna toot my own horn or anything but I'm just too damn smart not to be successful. I won't accept anything less. And whether I need it or not, I'm getting that degree.
I was on the fast track for a while there, but then my father died and I got a big dose of real life. Then the economy took a dive. But hey, shit happens. Just gotta make the most of it.
Good luck to everyone.
Plant Early
Member
"We are completely dependent on the commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon." Robert H. Hemphill, 1936 (Credit Manager of Federal Reserve Bank, Atlanta, Ga.)
fwiw, after a lot of education and a decent career. all generalizations, but i think pretty sound:
education:
- be aware of the employment market.
- sciences: (engineering, computer science, pure mathematics, biology, chemistry, esp. with a post-grad degree) make it much easier, since we're such a tech oriented world.
- liberal arts degree: i think you really have to love your field and want to be the best there at it, have a knack for it, and are ready to go anywhere for good experience. i think it's a bit like being a college athlete hoping to turn pro. be prepared to find the poor bohemian life somehow romantic
- internship courses are a good thing.
work:
- its easier to get a job once you have one because it shows someone thinks you're worth paying regularly to show up.
- experience required. move out of mom and dads, or out of lotus land, to wherever you can get any good, relevant experience in your field. once you have it, you will have more options. you've demonstrated you're employable in your field, so you can job search to relocate.
- no substitute for getting out and working. that is where you prove your interpersonal skills, reactions under pressure, technical expertise, work ethic. the degrees and certificates just get you in the door, then you have to show what you're worth. they have a prestigious business school at my u. they won't take undergrads directly into the masters; they tell 'em "you go out and work a while", guess they figure it will open their eyes
for my first job of my career, i had to to move to what i thought was east bumfuck, living in the crummiest place id ever lived even counting student life, eating nothing but ramen for 3 days because i was out of cash. i put in extra hours for free like crazy (not because i was an eager beaver, but because i had nothing else to do, at first). but i went up in pay bang bang bang in 2 yrs. then i moved on, and gained a new perspective (cash isn't everything, east bumfuck was a fantastic place, and when volcker decides to fight inflation, you buy the 13% GICs).
trades:
- people will always have to turn on the lights, flush the toilet, turn up the heat, make the oak mantelpiece, weld the reactor fuel tubes, wire up the windmills ... the trades are lucrative, interesting, creative, satisfying, and a great springboard for an entrepreneur.
- you have a better chance of picking where you want to live, since pretty well any developed area needs tradesman.
- if you're single, footloose and not given to the vices, you can do very, very well. talked to a guy recently, he was a fill-in on a construction crew here, went out west now he has his own business with 20 guys under him. i think the vices might get him, though.
your own business:
- you will work much more than if you work for someone else. someone said to me "oh so and so, he has is own business, he can take time off anytime he wants", i nearly fell over laughing.
- at least it is you driving you crazy, and not someone else.
finally:
- you really can't keep a good (in all senses) person down. someone with drive, who shows intelligence, honesty, integrity, and work ethic, is gonna make it. those people are rare, they are valued.
education:
- be aware of the employment market.
- sciences: (engineering, computer science, pure mathematics, biology, chemistry, esp. with a post-grad degree) make it much easier, since we're such a tech oriented world.
- liberal arts degree: i think you really have to love your field and want to be the best there at it, have a knack for it, and are ready to go anywhere for good experience. i think it's a bit like being a college athlete hoping to turn pro. be prepared to find the poor bohemian life somehow romantic
- internship courses are a good thing.
work:
- its easier to get a job once you have one because it shows someone thinks you're worth paying regularly to show up.
- experience required. move out of mom and dads, or out of lotus land, to wherever you can get any good, relevant experience in your field. once you have it, you will have more options. you've demonstrated you're employable in your field, so you can job search to relocate.
- no substitute for getting out and working. that is where you prove your interpersonal skills, reactions under pressure, technical expertise, work ethic. the degrees and certificates just get you in the door, then you have to show what you're worth. they have a prestigious business school at my u. they won't take undergrads directly into the masters; they tell 'em "you go out and work a while", guess they figure it will open their eyes
for my first job of my career, i had to to move to what i thought was east bumfuck, living in the crummiest place id ever lived even counting student life, eating nothing but ramen for 3 days because i was out of cash. i put in extra hours for free like crazy (not because i was an eager beaver, but because i had nothing else to do, at first). but i went up in pay bang bang bang in 2 yrs. then i moved on, and gained a new perspective (cash isn't everything, east bumfuck was a fantastic place, and when volcker decides to fight inflation, you buy the 13% GICs).
trades:
- people will always have to turn on the lights, flush the toilet, turn up the heat, make the oak mantelpiece, weld the reactor fuel tubes, wire up the windmills ... the trades are lucrative, interesting, creative, satisfying, and a great springboard for an entrepreneur.
- you have a better chance of picking where you want to live, since pretty well any developed area needs tradesman.
- if you're single, footloose and not given to the vices, you can do very, very well. talked to a guy recently, he was a fill-in on a construction crew here, went out west now he has his own business with 20 guys under him. i think the vices might get him, though.
your own business:
- you will work much more than if you work for someone else. someone said to me "oh so and so, he has is own business, he can take time off anytime he wants", i nearly fell over laughing.
- at least it is you driving you crazy, and not someone else.
finally:
- you really can't keep a good (in all senses) person down. someone with drive, who shows intelligence, honesty, integrity, and work ethic, is gonna make it. those people are rare, they are valued.
I fall into that age group and I still live at home.
My parents are very lax and understanding, my mother and I are basically best friends also... I may not live with my father for very much longer though, my mom and I are moving and the parents are separating soon.
I love my mom to death, share everything with her, and will stay in the same home with her until the day either of us dies.
It's not awkward at all though as it may seem to some of you; I have had girlfriends live with me who also loved having my mother there. As for when I have a family, if I have a family, I plan on living somewhere she can be pretty much next door to my own house or like live in a back house type of situation...
My parents are very lax and understanding, my mother and I are basically best friends also... I may not live with my father for very much longer though, my mom and I are moving and the parents are separating soon.
I love my mom to death, share everything with her, and will stay in the same home with her until the day either of us dies.
It's not awkward at all though as it may seem to some of you; I have had girlfriends live with me who also loved having my mother there. As for when I have a family, if I have a family, I plan on living somewhere she can be pretty much next door to my own house or like live in a back house type of situation...
Grobot2010
Member
Those are some interesting statistics whodare. So if you normalize everything to the 600% wage increase from 1955 to 2010, then it looks like the barriers to getting a new car, gas required by the car, and housing are twice, twice, and four times higher, respectively. I'd love to see the numbers for the cost of 4 years of college in 1955 and 2010.
The funny thing is, people still tell you the same kind of proportions of your income that should be spent on certain items: like keeping your housing cost at about 1/3 of your monthly income, save at least 10%, etc. But when that traditional advice hasn't really been updated to reflect the realities that face people today, or perhaps the reflect just how out of wack things have gotten and its time get the pendulum swinging in the other direction by first of all refusing to get involved in any loans to pay for these overpriced items (especially cars and houses).
Its also interesting to think about things that we must pay these days that were optional years ago... like insurance. It wasn't too long ago that you could just drive and having no insurance at all was an option, so if you were really hurting you had options for cutting costs that today simply are not possible, because without proof of insurance you don't even get to register the car, which means get pulled over and ticketed or steal the sticker from someone else and risk even worse... either way you look at it the cost or risk barrier is way higher now than it was for previous generations.
Not every generation leaves the world better than the way the found it and not every generation leaves the world worse than they found it.
The funny thing is, people still tell you the same kind of proportions of your income that should be spent on certain items: like keeping your housing cost at about 1/3 of your monthly income, save at least 10%, etc. But when that traditional advice hasn't really been updated to reflect the realities that face people today, or perhaps the reflect just how out of wack things have gotten and its time get the pendulum swinging in the other direction by first of all refusing to get involved in any loans to pay for these overpriced items (especially cars and houses).
Its also interesting to think about things that we must pay these days that were optional years ago... like insurance. It wasn't too long ago that you could just drive and having no insurance at all was an option, so if you were really hurting you had options for cutting costs that today simply are not possible, because without proof of insurance you don't even get to register the car, which means get pulled over and ticketed or steal the sticker from someone else and risk even worse... either way you look at it the cost or risk barrier is way higher now than it was for previous generations.
Not every generation leaves the world better than the way the found it and not every generation leaves the world worse than they found it.
I always thought is was "grab your jock and pull up your socks", but I think I like your way better.
