Comments on: Collapse of U.S. Housing Bubble Will Balance Income & Consumption

By: Economist

Economist — Tue, 16 Dec 2008 23:30:32 +0000

The live in USA ,France Australia,Japan is not same in the hollywood movies everybody with big bruick made houses and his dog and choufer !
That is the wrong image the oversees people have

In japan the average joe live in a very tiny house ( Japan ) rent $3,000. The life in those countries are not easy and the salary of the averaje Joe . Example in UK or USA small house (3 bedroom) rent per month (mortage ) 1,200 in a badly neigborn that hollywood movies never show .

By: Dave

Dave — Thu, 03 May 2007 03:43:40 +0000

Tom - You didn't talk about Australia? Australia is clearly in the same boat as the USA just a little bit behind in terms of timing.

By: Walter

Walter — Wed, 02 May 2007 19:55:33 +0000

Well, coming from Italy here 4 years ago I saw all the bad a reckless credit system can do: teach your children to spend money that YOU DO NOT HAVE...

Good luck with that.

In Europe the standard of living it is good because we do not know ( as average guy ) what it means to live with higher standards, therefore an average guy is thinking it is doing great. The problem will be for all the Americans people who lived until now at a higher rate and they will be forced to lower their standard of consumption.

good luck with that too..

walter

By: Tesh

Tesh — Wed, 02 May 2007 17:21:47 +0000

randombob, I think that's the article's point; Western Europe is a nice place. Americans have been gluttonous, and it's time to come back to reality. A reasonable standard of living, like in Western Europe, is possible, but America will have to cut back from the SUV parade and McMansions to get there.

Crashing may well be necessary to provide the kick in the complacency that America needs, though.

By: randombob

randombob — Tue, 01 May 2007 09:50:42 +0000

Whats wrong with Western European standards of living? Ever visited? I doubt it. Once the US removes the head from its ass it will see things far more clearly.

By: Matt

Matt — Thu, 26 Apr 2007 03:45:51 +0000

It's about time. The recession that wasn't following the dot com mania didn't cut it. Now the leveraged buy out phenomena is trying to be the salvation to the housing bubble. We are in a rapidly accellerating fiat money supply environment. Where the money will go next no one knows. But if Ben cuts interest rates to stop the bleeding, the game is over. And the dollar becomes confetti. Good riddance. Regardless: We need some pain. We need some bleeding. We need the books to be reckoned. This whole episode from the irrational exuberance speech until now has brought about unprecedented folly and moral gluttoney. People must learn to practice prudence in their financial affairs