Why ignorants are useful in a market?

What's gonna happen if people stop going to casinos? The latter end up closing.

What's gonna happen if people stop buying things that are beyond their means? Like homes, the real estate gonna go down.

However, people won't stop buying condos, townhomes, ind homes. I saw some indian couple moving into a town house adjacent to the ghetto complex I live in. They are in early 30's, probably IT types (how I figured that out: heuristics). The townhome is in the range of $650K.

$600 per every $100K.

$3900/month mortgage

Add 1 pc property tax: $6500 per year = $540 per month

property insurance: $2000 per year = $160 per month

$4600 per month

Add the crap you need to deal with as an owner, etc. Some studies claim that home owners tend to have less sex than renters.

You are living in a new town hoome: so, you both need to get new cars, at least one of them being Lexus, BMW, etc. Add those payments: $1000 per month for 2 cars

Add car insurance: $200 per month

Total: $5800

And you popped up a couple of kids; look at the implications.

daycare: 2400 per month for 2 kids. If they are grown up, look at the costs for private school since you want them to have better oppurtunities. $15/kid/year. In total: $40K. $3500/month.


Total: $9300.

What's the post-tax pay for $250K: 175K.

Sounds like you are left with $50K per year. Guess what! you gotta save for 401k, food, social expenses (after all, you are moving up the social ladder), etc.

In total, you are f*in broke.

We need folks like you, esp if I am a big hedgie. I can skim off your 401(k) through my legal schemes if you appear to prosper. If you are broke as when you loose home, I can make bucks as well.

We need middle class folks that participates in the economy; otherwise, wall street firms end up playing with each other, thereby leading to death: this is not gonna happen, if we get immigrants like you. 99 percent of immigrants fits your profile.

Rednecks, ghetto folks are far better: they dont participate in the market.


Next time about finance folks who are pursuing MBA-s, etc.