UBS Warns Americans Can No Longer Afford Mobile Homes | Zero Hedge
Description: “...this data represents a piece of a jigsaw puzzle of the condition of consumer finances... the picture that is emerging for the lower-income consumers and younger borrowers should serve as a warning sign for the economy.”

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# UBS Warns Americans Can No Longer Afford Mobile Homes

A little over a month ago, after we first brought the market’s attention to the crisis quietly unfolding in consumer debt, Business Insider has finally caught up, acknowledging that “lower-income consumers and younger borrowers with substantial student debt moving at a slower pace than more affluent and established participants.” In other words, Bussiness Insider describes the economy as running at ‘two speeds,’ and mentions an ominous warning sign that lower-income consumers are entirely tapped out.

Without consumption, the US economy would collapse. Consumption accounts for about 70 percent of US GDP. Further, there are some 95 million Americans out of the labor force. The rosy narratives of how millennials and low-income consumers are propping up the economy are starting to fade, as Business Insider through a new UBS report —provides the knowledge that the “mobile-home market is showing signs of stress.”

According to the consumer research desk at UBS, Americans can no longer afford mobile-homes, as the delinquency rate on these tiny trailers has soared two percentage points, over the past year. In fact, what is even more mindboggling, is the 30-day-plus delinquency level is now about five percent, not seen since the first quarter of 2005 or a few years after the dot-com bubble.

The recent surge in the number of struggling mobile-home borrowers is a new phenomenon. It hints at severe wealth inequality and a divided labor force that has left millions of Americans behind. Nevertheless, this is all occurring as the unemployment rate is hovering near record lows.

> “We interpret this data to mean that these individuals have not largely benefitted from these macro-dynamics, and may also be disproportionately exposed to industries that have experienced compression — rather than expansion — in the current economic conditions, such as retail or some areas of energy extraction,” UBS said.

During the 2016 presidential campaign of Donald Trump, mobile-home delinquencies spontaneously erupted, as conventional single-family residential loan delinquencies stayed stagnate.

Business Insider said, “this data represents a piece of a jigsaw puzzle of the condition of consumer finances.” According to UBS, the picture that is emerging for the lower-income consumers and younger borrowers should serve as a “warning sign for the economy.”

Summarization of the report below:

- About three in five consumers with an annual income below $40,000 indicate that their earnings barely or do not cover their expenses, a UBS survey found.

- Lower-income earners are often renting and carrying non-mortgage debt — such as credit card, auto, and student debt — at levels similar to or higher than the period before the financial crisis.

- More than one-third of borrowers in this demographic report misrepresenting their financials in loan applications, a UBS survey found.

- “While delinquency rates among student loans remain the highest of any consumer asset class, several other asset classes are beginning to inflect off of recent lows, despite broadly supportive economic conditions,” UBS said.

- The new tax law is likely to benefit middle-income borrowers, but it could have limited benefits for lower-income borrowers.

> “We believe weakness in these two groups will drive higher credit losses at some stage over the next few years — particularly in credit card, installment, and student loans — with macroeconomic inflection from job growth to job loss as a likely catalyst,” UBS said.

For now, however, to find the inflection point, keep an eye on the American consumer — rising consumer debt, low personal savings rate, soaring bank funding rates, and wage stagnation could be some of the contributors tilting the economy into the next recession.

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stant Fri, 04/06/2018 - 18:07 Permalink

the bitchez are broke!

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toady stant Fri, 04/06/2018 - 18:07 Permalink

I was surprised to see the trailers about a mile from my house going for $120k... just a few years ago they were 60k!

In reply to the bitchez are broke! by stant

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stant toady Fri, 04/06/2018 - 18:11 Permalink

i knew we had peak when foxworthy was pimpin two story mobile homes for rich people

In reply to I was by toady

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topspinslicer stant Fri, 04/06/2018 - 18:17 Permalink

There's always the central bankers cardboard box in amerika

In reply to i knew we had peak when… by stant

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beepbop topspinslicer Fri, 04/06/2018 - 18:36 Permalink

The CURSE is unforgiving.

In reply to There's always the central… by topspinslicer

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John Kerry-Heinz beepbop Fri, 04/06/2018 - 19:09 Permalink

If there was ever a tune to go with this article, this is fuckn it:

https://www.youtube.com/watch?v=iqddqYX5c_k

Make your speakers bleed...

Happy Friday!

In reply to The CURSE is unforgiving. by beepbop

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Bud Dry stant Fri, 04/06/2018 - 18:17 Permalink

Old Warren sucked them dry!

In reply to i knew we had peak when… by stant

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El Oregonian Bud Dry Fri, 04/06/2018 - 18:38 Permalink

Wow, even the so-called trailer trash are being booted... What next, live-in autos? ...No, wait?!

In reply to Old Warren sucked them dry! by Bud Dry

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serotonindumptruck stant Fri, 04/06/2018 - 18:20 Permalink

It might not be so much the cost of the mobile home, but the land (lot) that it can be placed on.

Zoning ordinances might also apply, as wealthy government workers do not want "dirt-poor trailer trash" living within a few square miles of their gated communities.

In reply to i knew we had peak when… by stant

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A Nanny Moose serotonindumptruck Fri, 04/06/2018 - 18:29 Permalink

mobile homes in my area are in the $200K-350K range. Land is extra ($700-800/mo). In-fucking-sane.

Small park models are ~$150K

In reply to It might not be so much the… by serotonindumptruck

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dasein211 A Nanny Moose Fri, 04/06/2018 - 18:35 Permalink

Get used to it. The more jobs given to robots the more mad max people will get. Wealth inequality can’t go on forever. When corporations care more about their shareholders than they do about reinvesting in employees, this is what we get. It can’t go on forever. Think about that. Rather than giving the extra return to their employees they give it to “shareholders” who don’t make or do shit for the company. Rent seekers indeed. We’ll open the markets for head seekers soon enough. Every great revolution comes from the ultra wealthy hoarding everything at the expense of everyone else. But do they have the technology this time to win?

In reply to mobile homes in my area are… by A Nanny Moose

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Cassandra.Hermes A Nanny Moose Fri, 04/06/2018 - 19:32 Permalink

My mother just bought a house near Kavala, Greece for € 60,000 with citrus orchard garden on hill with amazing view of Aegean sea, it is a real house not american carton box house

In reply to mobile homes in my area are… by A Nanny Moose

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Yog Soggoth stant Fri, 04/06/2018 - 18:23 Permalink

Ever been in super deluxe triple wide with more sq. ft than your own home that has nicer furniture than you? Additional hurricane straps with add ons? They still paid way less if they bought from a couple of years ago.

In reply to i knew we had peak when… by stant

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SILVERGEDDON toady Fri, 04/06/2018 - 18:20 Permalink

Oh, sweet Jesus fuck a duck - what will Warren Buffett do for pocket change now ?

In reply to I was by toady

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man from glad toady Fri, 04/06/2018 - 18:20 Permalink

And pick up trucks are $30k for a basic one, can't go to Walmart or the grocery without dropping $75-100, health insurance sky high... the pressures are everywhere and about to blow.

In reply to I was by toady

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Uncertain T man from glad Fri, 04/06/2018 - 18:27 Permalink

All it will take to blow the whole thing is a spike in gasoline prices.... Everything else is already pushing the limits of discretionary spending

In reply to And pick up trucks are $30k… by man from glad

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Wexx Uncertain T Fri, 04/06/2018 - 18:47 Permalink

That has already started. Just this year gas is up .50 cents already and it's not even getting hot yet. I filled up today with mid-grade at Kroger (Middle GA) and 91 was 2.59/gal. 87 was 2.39/gal and 93 was 3.09/gal.

In reply to All it will take to blow the… by Uncertain T

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BeansMcGreens man from glad Fri, 04/06/2018 - 18:31 Permalink

My taxes on a 2003 Dodge work truck is now the same as it was eight years ago, (of course listed value is about six thousand less than eight years ago).

In reply to And pick up trucks are $30k… by man from glad

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Abbie Normal man from glad Fri, 04/06/2018 - 18:41 Permalink

Saw an ad for a Dodge Ram on TV that had factory and dealer incentives of up to 25% off. The small-print said "up to $20,000 in total discounts" which means Chrysler-Fiat hopes some idiot is willing to buy an $80K pickup for $60K. Think I'll keep my 15-yr old pickup that just turned over 165000 miles and is still running like a champ.

In reply to And pick up trucks are $30k… by man from glad

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man from glad Abbie Normal Fri, 04/06/2018 - 18:54 Permalink

I'm with you. I drive a 20 year old GMC, 210K miles and still strong. Love it. Paid for and I don't need to worry about it getting dinged in the parking lot.

In reply to Saw an ad for a Dodge Ram on… by Abbie Normal

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JRobby toady Fri, 04/06/2018 - 18:25 Permalink

"Material costs have soared....."

"In other news, the "experts" are predicting hurricanes, wild fires, volcanic eruptions, drought and famine like they have been for years because they are paid to"

In reply to I was by toady

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MoralsAreEssential JRobby Fri, 04/06/2018 - 18:59 Permalink

And "they" are causing hurricanes and "wild fires" so people have to replace stuff.

In reply to "Material costs have soared… by JRobby

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SumTingWongJr toady Fri, 04/06/2018 - 18:50 Permalink

Poor ass motherfuckers can't afford shit in this economy. Lazy, to boot.

In reply to I was by toady

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Kprime toady Fri, 04/06/2018 - 18:56 Permalink

I bought my first HOUSE, not mobile home, when I was 19 years old. I paid 22,000 for the house. That was 1977.

In reply to I was by toady

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RafterManFMJ stant Fri, 04/06/2018 - 18:28 Permalink

the bitchez are broke!

da bitchez be broke!

Fify

In reply to the bitchez are broke! by stant

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Justin Case stant Fri, 04/06/2018 - 18:43 Permalink

MAGA one trailer at a time!!

In reply to the bitchez are broke! by stant

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Uranium Mountain stant Fri, 04/06/2018 - 19:20 Permalink

Manufactured homes are a bad buy. The banks think you'll put them back on Wheels and steal them even if they're on a foundation with no wheels underneath. They'll also charge you a higher interest rate. They're a rip-off plain and simple. I took a big loss when I sold mine but glad I got out from under it.

In reply to the bitchez are broke! by stant

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ShrNfr Fri, 04/06/2018 - 18:09 Permalink

"lower-income consumers and younger borrowers with substantial student debt moving at a slower pace than more affluent and established participants." So, dumb fucks with lots of student debt, and people who cannot do more than flip burgers are not doing as well as smart people and people with skills. Who wudda thought?

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Himself Fri, 04/06/2018 - 18:09 Permalink

Opioids are the new mobile home...

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Lost in translation Himself Fri, 04/06/2018 - 18:15 Permalink

Unmarked van made in the early/mid-70’s > mobile home.

In reply to Opioids are the new mobile… by Himself

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shizzledizzle Lost in translation Fri, 04/06/2018 - 18:19 Permalink

But the best place to put one is down by the river.

In reply to Unmarked van made in the… by Lost in translation

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SILVERGEDDON shizzledizzle Fri, 04/06/2018 - 18:21 Permalink

Only if you are 38 years old.

In reply to But the best place to put… by shizzledizzle

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TalkToLind Fri, 04/06/2018 - 18:11 Permalink

They'd better hurry up and get that wall built!

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Lost in translation TalkToLind Fri, 04/06/2018 - 18:18 Permalink

Too late.

CA is doling out DLs to illegals by the millions. These new voters will take their queues from David Hogg/Soros, and vote away your Natural Rights while voting to help themselves to your cash flow/assets.

American citizens have < 0 say in anything that affects their lives, their livelihoods, or their liberty.

In reply to They'd better hurry up and… by TalkToLind

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man from glad Lost in translation Fri, 04/06/2018 - 18:23 Permalink

The reason Americans don't give a hoot because its not hurting them enough yet. Wait until the big reset happens. Then illegals will be not so welcome.

In reply to Too late… by Lost in translation

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Lost in translation man from glad Fri, 04/06/2018 - 18:36 Permalink

Correct.

Hence the big “voter registration drive for America’s Youth” and the Millennial Brownshirt gun grab momentum we're seeing.

In reply to The reason Americans don't… by man from glad

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SumTingWongJr man from glad Fri, 04/06/2018 - 18:51 Permalink

Send these alien motherfuckers back home !

In reply to The reason Americans don't… by man from glad

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Juggernaut x2 Fri, 04/06/2018 - 18:12 Permalink

Can Trumptards still be considered Trailer Trash if they are kicked out of their trailers?

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Lost in translation Juggernaut x2 Fri, 04/06/2018 - 18:19 Permalink

Trailer parks are White Privilege.

/SARC

In reply to Can Trumptards still be… by Juggernaut x2

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topspinslicer Juggernaut x2 Fri, 04/06/2018 - 18:19 Permalink

You must be confusing with the Clinton hillbillies

In reply to Can Trumptards still be… by Juggernaut x2

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drstrangelove73 Juggernaut x2 Fri, 04/06/2018 - 18:33 Permalink

Can Obama dick suckers read?

You should be able to answer that question.What say you Juggs?

In reply to Can Trumptards still be… by Juggernaut x2

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Davy Crockett Juggernaut x2 Fri, 04/06/2018 - 18:43 Permalink

I get it. Because if you're smart or lucky enough to not live in a trailer, you would vote for Cuntlery. You're on fire today!

In reply to Can Trumptards still be… by Juggernaut x2

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sowhat1929 Fri, 04/06/2018 - 18:15 Permalink

Let these skum sleep on the street

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Giant Meteor sowhat1929 Fri, 04/06/2018 - 18:17 Permalink

Maybe you could set a better example and go first ..

In reply to Let these skum sleep on the… by sowhat1929

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Yen Cross sowhat1929 Fri, 04/06/2018 - 18:55 Permalink

wow... Just wow.

In reply to Let these skum sleep on the… by sowhat1929

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Yog Soggoth Fri, 04/06/2018 - 18:16 Permalink

Don't worry fellow ZH'ers, there are plenty of older ones sitting on unused property. This is like the used car scare. So the bank owns/bought these hopefully quality mobile homes, and they are sitting on supply and demand. Call me trailer trash, but I do like the mobility aspect. Next boom town, here I come!

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robertocarlos Fri, 04/06/2018 - 18:17 Permalink

Of course they can't afford a mobile home. An RV is expensive and so is gasoline. It's bad enough paying for the McMansion never mind adding a luxury vacation home on wheels.

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Sanity Bear Fri, 04/06/2018 - 18:17 Permalink

Amazing what an influx of 50 million illegal aliens will do to rents.

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BustedBanksta Fri, 04/06/2018 - 18:18 Permalink

And in related news... the national weather service cut its spring tornado forecast by half...

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saldulilem Fri, 04/06/2018 - 18:23 Permalink

Shithole

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