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.
AI Snips
Chapters
Books
Transcript
Episode notes
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.
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.
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.
