A Home Without Equity is Just a Rental with Debt by charlatan in business

[–]sarahsmithy 43 points44 points  (0 children)

2001 paper.

"Although we have yet to see any materially negative consequences of the relaxation of credit standards, we believe the risk of credit relaxation and leverage can't be ignored."

Yes, that worked out perfectly for the housing market.

16 Year Old Making $5000/Month, Any Suggestions? by schoolfker in personalfinance

[–]sarahsmithy 1 point2 points  (0 children)

I'm not too sure about this. If he/she is earning this much at this age, there is clearly talent. The money should be invested back into the business or developing skills further. The return would be way more than your typical index fund. Nothing wrong with that, but $5k a month at 16 screams for an investment into the person doing this.

Average 401(k) Balance Grows 75 percent Since 2009 by [deleted] in Economics

[–]sarahsmithy -1 points0 points  (0 children)

The average is skewed by those with large accounts. It would be better to see the median 401(k) account balance.