Go figure: Where we are heading?
The average home in the United states cost $164.000.00. Over the next 30 years, the cost of occupying this home as follows:
MORGAGE PAYMENTS $396.000.00
TAXES AROUND $100.000.00
WATER BILLS $40.000.00
CABLE AND MEDIA $50.000.00
MEDICAL INSURANCE $156.000.00
HOME AND CAR INS. $39.000.00
TOTAL FOR THE HOUSEHOLD: $ 906.000.00 FOR 30 YEARS OF LIVING IN THIS HOME.
The median household income before taxes in the U.S.A is $49.000.00 in 2009.
The take home after taxes is for 30 years is $1.102.500.00.
When we deduct the income from the housing cost the result is196.500.00.
Divide the result by 360 months we get $545.00. The last figure is what people have left on monthly basis to buy food, pay for gas, save, send kids to college, pay for extra medical care, go on vacations....etc.
These figures are the real outlook for the markets. This is what is left from the American dream. People have woken up from this dream, foreclosed and moved on. People have nothing left to give to the rich anymore. Also, the government will need more in the near future to start paying its deBts. The average citizen will have to support 14 trillion dollars in deBt. The employers asking workers to make sacrifices. No raises, paying more for benefits ....etc. CEOs are getting more money than the shareholders combined. Even when they pay dividends, its pennies. Where greed is leading this country?
All these figures are based on my own life and numbers.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.