Hangover from the latest Housing Party- The Economy has a Headache
The economy must "work through" the current oversupply of homes in order for the housing market to begin a recovery process. It is my understanding that there are enough empty, unsold new builds on the market that occupancy levels wont return to normal until early 2009. Until then, decreasing home valuations (and tightening of lending standards to certain demographics which rely on home equity for cash) will disallow american consumers to continue using home equity to fund purchases. The American consumer, being a pillar of our economy, now has eroded buying power and is more reluctant to borrow against their home. In regards to stagnant household incomes, I do not think stagflation will help this situation.
When the market does recover, obtaining a home loan, and home ownership will be more difficult for lower income borrowers as retail banks will be reluctant to take on additional mortgages when they are already laden with packaged loans they cannot sell. Solution?
Malcolm Gladwell teaches "Get over yourself and get to work" for Big Think Edge.
- Learn to recognize failure and know the big difference between panicking and choking.
- At Big Think Edge, Malcolm Gladwell teaches how to check your inner critic and get clear on what failure is.
- Subscribe to Big Think Edge before we launch on March 30 to get 20% off monthly and annual memberships.
Can sensitive coral reefs survive another human generation?
- Coral reefs may not be able to survive another human decade because of the environmental stress we have placed on them, says author David Wallace-Wells. He posits that without meaningful changes to policies, the trend of them dying out, even in light of recent advances, will continue.
- The World Wildlife Fund says that 60 percent of all vertebrate mammals have died since just 1970. On top of this, recent studies suggest that insect populations may have fallen by as much as 75 percent over the last few decades.
- If it were not for our oceans, the planet would probably be already several degrees warmer than it is today due to the emissions we've expelled into the atmosphere.
They didn't know it, but the rituals of Iron Age Scandinavians turned their iron into steel.
- Iron Age Scandinavians only had access to poor quality iron, which put them at a tactical disadvantage against their neighbors.
- To strengthen their swords, smiths used the bones of their dead ancestors and animals, hoping to transfer the spirit into their blades.
- They couldn't have known that in so doing, they actually were forging a rudimentary form of steel.
Michael Dowling, Northwell Health's CEO, believes we're entering the age of smart medicine.
- The United States health care system has much room for improvement, and big tech may be laying the foundation for those improvements.
- Technological progress in medicine is coming from two fronts: medical technology and information technology.
- As information technology develops, patients will become active participants in their health care, and value-based care may become a reality.
SMARTER FASTER trademarks owned by The Big Think, Inc. All rights reserved.