The Federal Debt:

The current amount The U.S. Government owes is over $19 trillion and therefore it is mathematically impossible to pay back. They will never be able to pay this back. Central bankers are in uncharted waters. They do not know how to create economic growth and fight deflation in some areas of the market.They do not know how to even return to a time of “normal” monetary policy. Their pretense of knowledge, of being able to effectively control currencies used by billions of people, is coming to an end.

The amount of debt only continues to grow and people think that somehow, governments are beyond the laws of mathematics.Things are fine until they are not.This is not an issue that will just go away or disappear, but rather continue to build until it reaches a breaking point.

Labor Force Participation:

We have close to 10’s of millions of Americans that are flat out not part of the labor force (not including children). The argument that this is only being made up of recent retirees is not true.First, many cannot retire because they need to work until they die.Another point is the rate is going up much faster than the number of people hitting old age.

Homeownership:

The homeownership rate has fully collapsed.Since the Great Recession hit, a large part of buying came from Wall Street and institutional investors.They bought homes to convert into rentals since this was how they used their bailout savior money.The money kept them afloat and what do they do?Buy up homes in a tight market and drive prices higher when working Americans already have declining incomes.The net result is that fewer people/families own their property and owning your home has always been traditionally viewed as the American dream.This has been the one vehicle where most Americans build wealth and equity and it’s not happening at nearly the same rate as it one was.

The problem is that people do not have $20,000 or $30,000 to make a down payment. I see a smaller number of Americans making their home the ultimate financial goal which is a good thing. It forces saving via having equity in their home. Let’s face it, you don’t hear all the retired and wealthy people saying they made their big money in a retirement account. In almost every case they earned their wealth through real estate investments in their own home and/or rental properties over time.