We have troubling economic headwinds that are being felt on the shoulders of many American families. Over a decade of stagnant wage growth is taking a toll on the psyche of many. Many large cities still have inflated home prices yet these bubbles are slowly deflating just like the rest of housing in America. The home price collapse stems from the massive bubble and mania, that could be categorized as stage one.
Yet stage two will be more ominous because home prices are now falling lower to reflect the lower wages many Americans are combating. People can only afford so much based on their household income. The fact that so many people are taking lower paying jobs and filling the seats at less than quality colleges for $50,000 a year shows how desperate many Americans are even though the recession has technically been over since the summer of 2009.
Liquidity moves markets!Follow the money. Find the profits!
Let us examine three current economic trends that are likely to keep wages low and home prices just as low moving forward.