CNBC's Liesman, Housing And Other Fairy Tales

Ever want to reach through the television screen and punch someone?  To see ANY commentator spew fairy dust and tall tales with a straight face without telling the entire picture just makes my blood boil.  Here's a portion of this discussion - full video located below

"The excess amount of young adults living at home will unwind alongside a stronger macroeconmic environment and income growth; and the inordinate amount of married couples that are residing in apartment will transition into single-family homes"
Liesman continues:  It has been wrong but I still believe. 
Seriously?  Sure - in a normal recovery!
Steve while you're doing your "30,000 foot view", did you fail to notice the little to no job OR income growth?
  • Where's the "stronger macroeconomic environment"?  The GOP is doing everything they can to stop a minimum wage increase.  Steve, perhaps you should write your Congressman.
  • Sure, they'd all love to move out of Mom and Dad's but is that even remotely possible in today's environment?
  • Did you fail to notice the Fed has done everything it can to dissuade savings for a down payment?
  • Did you fail to notice that new job creation has been at extreme high or extreme low of the spectrum? 
  • How many of your (now) 35 year old's will still be earnings paltry wages (and raises) going forward as Corporations continue to automate and search for more cost savings to boost their stock price? 
Let's talk these 35 year old's contribution to US GDP (which came in negative today).

To quote one research paper, the contribution of real GDP growth per capita increases as ages increase into the mid-30s before turning down.  So there's your sweet spot.......then it's all down hill.  If only we were Japan with a growing younger crowd; however that's not the case.

"The average contribution to GDP growth becomes negative between 55 and 60," they explain. "This does not mean that people begin to consume more GDP than they produce after age 55, only that—on average—workers above age 55 have passed their peak in productivity.

Hello...........that means baby boomers.  A enormous of contributor of prior GDP growth is slowing down, contributing less and I could care less what your fairytale hopes are for the 35ish demographic to buy homes in the future.  God only knows there are enough empty ones lying around the nation *IF* they have great credit and a down payment. 

The news doesn't get better world wide as a matter of fact.  The OECD in 2012 projected worldwide growth to continue to slow with an aging, grey haired population.

The rules have changed, prices are high, a down payment is now needed more than ever before and jobs are being created at $7.25/hr.  Good luck with that Steve.  It's not happening this year........

Next time you try to cheer lead a rosy picture for your viewers, try (for once) to show the ENTIRE picture.  Just not one to please your Corporate sponsors.  Wonder why CNBC's ratings are falling?  Here's a perfect example.

Entire full length CNBC video may be found here.

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  • Admin

    Digging deeper into today's better-than-expected non-farm payroll, one sees (again) that low-wage job creation comprises the maority of the gains.  Once again it seems the middle class is being left out leaving only the lower and upper class job creation.


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