Confounded Interest | Recovery? Lower-wage Workers Replace Higher-pay Since The Recession (Bad News For Housing)

Confounded Interest | Recovery? Lower-wage Workers Replace Higher-pay Since The Recession (Bad News For Housing)

Recovery? Lower-wage Workers Replace Higher-pay Since The Recession (Bad News For Housing)

Logan Mohtashami and I have been discussing the lack of qualified mortgage borrowers thanks to eroding household income and insufficient assets for a while. We already knew that Average Hourly Earnings for American workers dropped like a rock in 2009.

Now comes a new study conforming what I have been saying: It is The Low Wage Recovery.
According to the report, there are nearly two million fewer jobs in mid- and higher-wage industries than there were before the recession took hold.
 Lower-wage industries accounted for only 22 percent of job losses during the downturn, but 44
percent of jobs gained over the past four years.
 Mid-wage industries accounted for 37 percent of job losses, but only 26 percent of job gains.
 Higher-wage industries accounted for 41 percent of job losses, but only 30 percent of job gains.

It is difficult to have a middle class housing recovery when you have a non-recovery in jobs, even if the debt bubble has burst.

Then again, it is good news for investors who can benefit from The Fed’s zero-interest rate policy and QE. Not so much for borrowers with part-time jobs when house prices are rising.

Yes, it is hard to have a middle-class housing recovery when part-time jobs are replacing full-time jobs at lower wages.

Particularly when you have to say “Cheeburger, Cheeburger, Pepsi, cheeps.”

Actually, SNL’s Olympia Restaurant is the Billy Goat Tavern in Chicago near University of Chicago Gleacher Center (downtown), 430 N. Michigan Ave at Lower Level.