There is no way all the trucks sold are used on farms,
unless farmers buy one a year... I think most farmer's can't
afford that.
Marketing don't force people to consume.
It finds what people dream about and cater to that.
They also try to differentiate their product from the
other guy producing thingamabob's. Its about competition.
People have self-control, they can choose not to buy a SUV
and a flat screen 40 incher.
I know plenty of people who
can barely feed their children yet got a new SUV and a car
in the driveway. Don't tell me there was no other solution!
People don't want to be thrifty, its not the "american way"...
American's live way way way beyond their means; they use
twice as much credit as the next highest country.
I lived in San-Francisco and commuted to Freemont (3 hours commute a day);
I didn't own a car, had a 27 inch TV, couldn't afford a house
in San-Francisco but I rented, I didn't want to have to live in the central valley
and pay 2K a month in mortgage for a small shack just so I'd have my own little
crap castle. I was paid well, so these where my choices.
Its all about priorities and choices.
Buying a house is a choice, and often its not the most sensible choice.
Saving you're own money is always a better investment than
putting it in real estate.
Its simple math, real estate grows long term about 4%, which is wiped out by interests
payments. Some of the money is recovered through taxation advantages, so all in all,
it comes out about even. A single family house is not an investment,
its a place to live in. The last
5 years have made people forget about this.
Investing wisely in blue chip stocks (warren buffet style) gives an a return of 7% long term
(last 200 years average, even counting the depression years!!)
If people were in the habit of saving (they are not), this would be the best deal.
A run-up price like we've seen screws up people and they get greedy.