Morning Wire

American Dream For Rent | Sunday Extra

4 snips
Jul 2, 2023
Carol Roth, a recovering investment banker and New York Times bestselling author, shares her insights on the unsettling state of the American dream. With consumer debt soaring beyond $17 trillion, she highlights the struggles of the middle and lower classes. Rising mortgage rates and institutional buyers are reshaping the housing market, making ownership increasingly elusive. Roth argues for a shift toward asset acquisition and warns against the pitfalls of a subscription-based economy, urging a reclaiming of financial independence.
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INSIGHT

Rising Corporate Defaults and Bankruptcies

  • Corporate defaults have doubled since last year, and bankruptcy filings are at their highest since 2010.
  • The Federal Reserve's intervention and suppression of interest rates for 15 years disrupted risk and led to easy money and excessive risk-taking on Wall Street.
INSIGHT

The Personal Recession

  • American consumer debt exceeding $17 trillion and rising credit card debt are indicative of a "personal recession."
  • Increased prices, especially for the lower and middle classes, have led to decreased savings and increased personal debt.
INSIGHT

Strong Housing Market and Supply-Demand Imbalance

  • The housing market is strong due to a supply-demand imbalance caused by underbuilding and high interest rates.
  • Wall Street's purchase of homes after the 2008 crisis contributed to this shortage, benefiting corporations at the expense of average Americans.
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