Ohhh. I think this is where we differ in out words but agree in our thoughts.
"...the more people make, the more debt they have..." This would be what I think of when you earlier said "overlevered". I fully agree with you that anyone making big money but with proportionally large debt payments would be in trouble.
If you make big money with big debts and things get tight, that is bad news.
If you make big money with no debts and things get tight that is good news.
I know tech Millennials that buy Manhattan condos in cash with just their hiring bonus. If the price drops 50% it sucks but is not an issue. Like any group, some are bad with money and some are ok with money.
Ohhh. I think this is where we differ in out words but agree in our thoughts.
"...the more people make, the more debt they have..." This would be what I think of when you earlier said "overlevered". I fully agree with you that anyone making big money but with proportionally large debt payments would be in trouble.
If you make big money with big debts and things get tight, that is bad news.
If you make big money with no debts and things get tight that is good news.
I know tech Millennials that buy Manhattan condos in cash with just their hiring bonus. If the price drops 50% it sucks but is not an issue. Like any group, some are bad with money and some are ok with money.