50% of marriages end in divorce, huge percent of people end up disabled, job loss is real and growing every year. So sort of suicidal to lend to the average person over any long time horizon. Unless it is like 50% down.
In the 20th century you could be reasonably sure if someone lost their job they could easily replace it with a similiar paying job. In the 21st century its a different game.
That is why my contention is that lending is increasingly going to be to states and corporations. The consumer credit market is going to fade away. It will still be there just a lot smaller percent of the whole. Its like credit card debt, the big banks are trying to get out of it. Because they aren't making money on it. Soon it will be something more reserved for their premium clients.
Without consumer credit what is going to drive the economy? .. state spending. Look even in Britain in just the last 2 years the number getting housing assistance rose by 500,000.
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