Core Insights - Younger generations are increasingly making riskier investments and spending more recklessly as they abandon the American dream of homeownership, driven by declining housing affordability [1][2] - The study indicates that individuals born in the 1990s are projected to have a homeownership rate approximately 9.6 percentage points lower than that of their parents' generation [2] - Households with lower perceived probabilities of achieving homeownership tend to spend a larger share of their income on consumption, reduce work effort, and engage in riskier investments [2][5] Housing Affordability Trends - The affordability crisis in the housing market began around 2020 and intensified sharply between 2021 and 2022 due to skyrocketing home prices, rising mortgage rates, and tight housing inventory [9] - Since interest rates increased, market activity has stagnated, with homeowners reluctant to sell due to low mortgage rates and potential buyers facing limited inventory and higher borrowing costs [10] Behavioral Patterns - Renters with net worth below the median U.S. house price are found to spend more on credit cards, exert less effort at work, and participate more in cryptocurrency markets compared to homeowners with similar wealth [5] - These behavioral patterns are expected to compound over time, leading to larger wealth gaps between those who continue to pursue homeownership and those who give up [6] Recommendations - The authors of the study suggest implementing a subsidy to assist young renters in their pursuit of homeownership, which would enhance overall well-being more effectively than providing equal amounts to all or targeting only the poorest [8]

The stock market has soared in recent years on the back of artificial intelligence. According to a recent JP Morgan study, the stocks of companies tied to AI have accounted for about 75% of the S&P 500's returns since November 2022 when Chad GPT launched. But not everyone has participated in the AI stock boom.The richest 20% of US households own about 93% of all stock according to a New York University economist. In other words, poorer households have largely sat on the sidelines as the stock market has cli ...

are the voters who are speaking out on high prices in this economy and that's just what they're going through. Then there's the wealth gap, tech boom, Wall Street bull market raging on and this gap is not just about political messaging. In fact, if there were no elections on Tuesday and none of this had taken flight in sort of the public debate, income inequality would still be surging, driven both by the stock market gains and choices in US law and regulation, which currently reward the wealthy far more th ...

From towering valuations to the widening wealth gap, here are the charts haunting Wall Street professionals right now. https://t.co/54qUP2QOmo ...

This used to be true but not anymore.The entire world financial ponzi is collapsing.AI is taking over and the wealth gap is going be so large that upward economic mobility will no longer be possible.With the implementation of digital IDs, social credit scores and carbon emission caps if you aren't rich already you are screwed.You will be part of the permanent underclass, geographically trapped within your 15 minute city, living on the government dole while you own nothing.Renaissance (@0xRenaissance):If CZ ...

Core Insights - Robinhood's tokenized stock program aims to provide broader access to private market investments, potentially reducing the wealth gap, despite facing criticism from entities like OpenAI [1][4][7] Tokenized Stock Program - In July, Robinhood launched "stock tokens" linked to companies such as OpenAI and SpaceX, allowing users to invest in private firms that are not publicly traded [3] - These products are structured as blockchain-tracked contracts rather than traditional equity, offering price exposure without shareholder rights [3] Criticism and Defense - The tokenized stock initiative received immediate backlash from OpenAI, which clarified it had no involvement in the offering [4] - Robinhood's management defended the program, arguing that tokenization could democratize access to investment opportunities, which are often limited to wealthy individuals [4][6] Wealth Gap Discussion - The company highlighted that current investment systems favor accredited investors, leaving retail investors at a disadvantage [5][6] - Kerbrat suggested that the criteria for accredited investors should shift from wealth-based thresholds to knowledge-based assessments, allowing more individuals to participate in investment opportunities [6] Growth in Crypto Sector - Robinhood's crypto offerings, including staking products, are rapidly expanding, positioning the company to attract a diverse demographic beyond just crypto enthusiasts [2][7]

RT The Kobeissi Letter (@KobeissiLetter)Low-income earners are struggling:The 3-month average of the bottom 33% of Americans' after-tax YoY wage growth dropped to 0.9% in August, the slowest pace since 2016.This is a significant decline from the +3.0% seen at the beginning of the year.At the same time, the top third saw +3.6% YoY growth, the highest since November 2021.In other words, top earners’ wages are growing 4 TIMES faster than those of low-income consumers.By comparison, middle-income earners’ salar ...

The Wealth Gap was created by design to divide the massesReligionRaceSexPoliticsWill always be an issue but would be a less of an issue if everyone have a access to obtain wealthThe accredited investor law must go.The Kobeissi Letter (@KobeissiLetter):Shocking stat of the day:The bottom 50% of US households now hold just 2.5% of total US wealth.History says rate cuts with stocks at record highs will lead to even more record highs 12 months from now.Asset owners will party and the wealth gap will widen.Espec ...

In Indonesia and elsewhere, export manufacturing helped narrow the wealth gap with the West, creating a consumer class, but that transformation has stalled https://t.co/GRNPtRu44P ...

New York’s richest residents are wealthier than ever, even as Zohran Mamdani pushes to close the city’s wealth gap https://t.co/PWwYhyzVZX ...