More on the coming economic crisis for young people, and let me say, wow, just wow: the essay is a much more rigorous exposition of the things I talked about in my rant.
In particular, the author had similar problems to me in getting a mortgage, such as how I get told on one side, “you have a great credit score and qualify for a good rate!” and on another, “but you’re not good enough for a loan”. And he didn’t even make the mistake of not getting a credit card early on!
Plus, he gives a lot of information from his personal experience.
Be warned, though: it’s mixed with a lot of blame-the-government themes and certainty about future hyperinflation, and the preservation of real estate’s value therein, if that kind of thing turns you off.
Edit: Okay, I’ve edited this comment about eight times now, but I left this out: from a rationality perspective, this essay shows the worst parts of Goodhart’s Law: apparently, the old, functional criteria that would correctly identify some mortgage applicants is going to be mandated as the standard on all future mortgages. Yikes!
I’ve seen discussion of Goodhart’s Law + Conservation of Thought playing out nastily in investment. For example, junk bonds started out as finding some undervalued bonds among junk bonds. Fine, that’s how the market is supposed to work. Then people jumped to the conclusion that everything which was called a junk bond was undervalued. Oops.
More on the coming economic crisis for young people, and let me say, wow, just wow: the essay is a much more rigorous exposition of the things I talked about in my rant.
In particular, the author had similar problems to me in getting a mortgage, such as how I get told on one side, “you have a great credit score and qualify for a good rate!” and on another, “but you’re not good enough for a loan”. And he didn’t even make the mistake of not getting a credit card early on!
Plus, he gives a lot of information from his personal experience.
Be warned, though: it’s mixed with a lot of blame-the-government themes and certainty about future hyperinflation, and the preservation of real estate’s value therein, if that kind of thing turns you off.
Edit: Okay, I’ve edited this comment about eight times now, but I left this out: from a rationality perspective, this essay shows the worst parts of Goodhart’s Law: apparently, the old, functional criteria that would correctly identify some mortgage applicants is going to be mandated as the standard on all future mortgages. Yikes!
I’ve seen discussion of Goodhart’s Law + Conservation of Thought playing out nastily in investment. For example, junk bonds started out as finding some undervalued bonds among junk bonds. Fine, that’s how the market is supposed to work. Then people jumped to the conclusion that everything which was called a junk bond was undervalued. Oops.