Rating: 
Summary: Peer Pressure
Review: My favorite saying is choose your friends carefully.
If i had to choose the culprit that is the banks that
give out those 0% down on houses. Be fearful when people
are greedy and greedy when everyone else is fearfull.
The housing market in this country is going to crash
so bad that it will take another generation for them
to recover. So just wait. The following advice applyies
TRUST YOURSELF
Rating: 
Summary: What about personal responsibility?
Review: Other reviewers have touched on the main points made in this book, so I won't go over them. I both agree and disagree with the authors. Yes, fixed expenses such as taxes and mortgages are higher than for previous generations. Yes, downsizing, foreign outsourcing and 9 million illegal immigrants are driving down wages. Yes, unforeseen health problems can devastate a family financially. These are serious problems that should be dealt with at the government level. However, I disagree with the tone of victimization in the book. The average American must bare some responsibility for the problems they find themselves in. Most Americans are not politically involved. Many are likely to know the characters on Survivor, but most will not know the names of the Democratic presidential candidates. Many care more about celebrities and entertainment than the policies and laws that actually affect their lives. If ordinary people don't care about politics, why should the politicians look out for their needs? In my condo complex many couples with small children own either one or two SUVs, which are much more costly to buy and run than the average Honda Civic or Ford Taurus. People I work with think nothing about spending a couple of hundred dollars on meals and drinks each weekend ($700-$800 a month). Most buy lunch each day at a cost of $5 to $7 (Approx. $120 a month). Many stop by at Starbucks for morning coffee (Approx. $50 a month). So my coworkers who earn about $2500 to $3500 a month after taxes can easily blow $1000 a month on restaurant food and beverages. My husband and I eat dinner out twice a month, which rarely costs more than $25. We buy lunch only a few times a month. We drink the coffee and tea provided at work. The authors seriously downplay much of the excessive, discretionary spending that is really going on. There are a few other issues. People are putting off marriage, usually until their mid 30s. Living on one income is more costly than on two, which prevents many people from accumulating wealth and assets at an early age. This also makes it extremely difficult to live on one income when children arrive. Divorce rates are excessive. The main reason for divorce is irreconcilable differences. Studies have found that couples who work out their problems and stay married are twice as likely to be happy five years later than couples who split up. More women are choosing to be single parents. Singleness in whatever form it takes is a financial drain. I am giving this book 3 stars because much of what is says is important. However, I am afraid the authors may be making excuses for many people who really are responsible for their bad financial situations.
Rating:
Summary: Fresh College Grad - New to workforce and newly married
Review: Must read for young people new to the workforce or just married. In just 2 years into the corporate world, I have already witnessed how fragile job security can be, and how rapidly corporations downsize to focus on their bottomline. That experience has left me with a deep sckepticism on the current trend and mindset of buying a house early to start building your "equity"; especially when you have little saved up and are hedging against your future job security, which may not be so safe after all. I would really encourage young readers to read this book and think broad and long term about possible consequences and changes that life situations can bring upon; and start with a wise and emotion-less approach towards making major life decisions (such as buying a house).
Rating:
Summary: Another Great Reason to Home School Kids
Review: Very thought provoking. It explains why life got better when my wife stopped working and started home schooling our kids. We didn't have to move to the new school district and we are enjoying a great mortgage. I think they're on to something.
Rating: 
Summary: The Real Deal
Review: The ONLY reason I gave this book 4 stars and not 5 was because I felt it bashed men a little bit, but I do understand why. Men, don't let this stop you from getting this book! If you ever wondered how other families appear to be making it financially and you just can't seem to put it together or the numbers (your income vs. your expenses) just don't equal out. This book will shed some light on it for you. The majority of American families are struggling financially, but most are in denial. As the book points out we are in desperate need of consumer lending regulations! Lenders are stealing our wealth plain and simple... because they can get away with it. Read, "Consider the toaster" on page 146. Will the author's recommendations work? I wish I had a crystal ball. One thing I know for sure is, Americans need to join together and fight for our economic future. From my two-income household, it doesn't look very good. These comments are my personal opinions after reading this book. Who am I? I am a just like you: a hard working American that has no real hope for earning a fair wage with medical benefits, buying a decent home, taking family vacations that don't involve staying with friends and family, sending my kids to college, or even retiring when I am in my 70s.
Rating:
Summary: Diagnosing the Epidemic of Bankruptcy
Review: This very readable book documents the ongoing oppression of families over the last twenty years by investigating the huge increase in bankruptcies. [It is NOT just "personal irresponsibility]. More people go bankrupt than suffer heart attacks, cancer, or divorce! The average two-income family earns far more than the single income family a generation ago, yet have far less discretionary income (p.51). Financial problems are statistically linked with marital problems. Economic forces are battering the American family. The three indicators for bankruptcy are: possible foreclosure on a home, medical bills that can't be paid, credit card debt that can never be paid. Chapter 2 discusses the Over-Consumption Myth. The average family spends less on clothing and appliances. More at restaurants but less on groceries. Most increased spending went into homes; there has been a huge increase in prices (p.22) due to concerns for safety and education (p.23). In the 1970s most Americans believed schools were as good or better than in earlier times; not today (p.25). [The authors do not investigate what Federal laws caused this.] They give one example on how crime is used to generate housing profits (p.27)! [Does this reflect the restrictions on Second Amendment Rights?] Forcing movement into suburbs creates the need for "a second car" and ultimately benefits Big Oil. The best way to get out of the "Housing Trap" is to improve public education (p.33). If the restrictions between location and schooling were eliminated, there would still be the problem of transportation. [Would those who benefit from the current politics ever allow these changes? You need a new popular political force to change existing laws.] Government-subsidized day care would add more pressure on mothers to join the workforce (p.40); this would lower wages again. Americans view a college degree as the "single most important" thing for success. Faith in higher education is a new secular religion. [Does the college degree correlate with the decline of the middle class: owner operated farms and businesses? Did America prosper and thrive before WW II just by growing crops and making things?] Chapter 3 explains the economic benefits of non-working mothers as a safety net" caregivers who can reenter the work force as needed. Chapter 4 refutes the charge that bankruptcy is a moral failure. No one chooses to get sick to run up high medical bills, or ship their jobs offshore. You can't run up high credit card bills unless bankers raise your limit. Chapter 5 says single mothers are more likely to file for bankruptcy, an increase of 600%! A divorce splits the assets, but both are 100% responsible for the debts. Divorced fathers who owe child support are more likely to file for bankruptcy. Page 113 charts the changes in personal savings. Chapter 6 explains the debt explosion by the deregulation of banking (p.128). Rising interest rates were followed by increasing bankruptcies. Easy loan money has a hidden price tag (p.133). Some banks issue unaffordable mortgages so they can foreclose and sell the house again! Stores earn more profits from interest and late fees than from selling merchandise (p.144). The Savings & Loan disasters of the late 1970s were caused by the currency devaluation by the Federal Reserve. Deregulation of interest rates caused a massive increase in bankruptcies, but politicians refuse the cure of regulation (p.152). Chapter 7 is the most important. It says collective action is the most effective remedy and essential for reestablishing economic security for the middle class. Most financial planning books assume steady work, good health, no emergencies. But what if your job is lost? Can you cut back on fixed expenses? Be prepared for an emergency. Beware of long-term financial commitments (p.166). Credit card insurance is useless, your heirs are not required to pay your balance. The authors offer advice for those in deep debt (pp.168-169). Creditors are not your friends. Corporations that file for bankruptcy don't feel guilt. Economic difficulties and family problems like divorce lead to falling test scores, low self-esteem, discipline problems, and depression. American families need to organize to solve their problems (p.180).
Rating:
Summary: Interesting, On-Target but with One Big Hole
Review: Tyagi and Warren have written a highly readable, easy-to-understand analysis of the challenges facing middle-class families today. Their comparison of costs from the late-70s/early-80s to those of today is fascinating. And their findings - that mid-income families are overextending themselves in order to get their children into safe neighborhoods with good schools, with the result that any setback (medical problems, divorce, layoffs) can mean financial disaster - is unarguable. But the authors barely touch on the core problem that has driven the middle-class to high-priced suburbs - the appalling quality of so many school systems. Suggestions for ways to avoid the two-income trap (Warren and Tyagi offer several) ought to include ideas for ways to improve schools. The authors do make one suggestion, in support of school vouchers. But vouchers have failed for the same reason schools are failing - because of teacher unions that, in effect, enforce mediocrity. Warren and Tyagi missed a prime opportunity to expand the discussion to cover the REAL issue behind the "two-income trap."
Rating:
Summary: I serious and increasing problem
Review: Warren and Tyagi provided a well needed analysis of the growing financial crisis which has now struck 1 of 7 families in this country. It is time that people woke up and realized how devastating the rising costs of housing, transportation, and insurance are effecting the social fabric of this great nation. They could also have discussed taxation which now devours nearly 52 percent of our incomes. Unfortunately I felt they were short on solutions and analysis. Sure all families want to live near quality school districts, however, these societal changes are effecting both families and individuals. The truth of the matter is that an unholy alliance has evolved between corporations, government and the media. Unfortunately this alliance only cares about profits and the bottom line. As a result they have waged a "race to the bottom" where American jobs and factories are being exported to third world countries (e.g., India, China, Indonesia) at a alarming and accelerating rate. In years past such insensivity would be seen as a treasonous offence and treated accordingly. While I certainly recommend reading there book I also want you to consider a real and immediate solution. We currently have 750,000 H1B foriegn workers in this country, working jobs while their American counterparts are either unemployed or underemployed. We have also allowed nearly 1 million jobs to be off shored in the last three years. By deporting the H1B workers and insisting on recovering all of these offshored jobs much of the problems that Warren and Tyagi discuss could be greatly minimized. Write your Congressman and insist that this be done immediately. The future of the middle class hangs in the balance. Professor Hemp
www.newagecitizen.com
Rating:
Summary: Food for thought, but few will partake
Review: I was very interested to read this book and while I don't completely agree with some of the authors' premises, I can respect their viewpoints. They argue - and use data to back up their theory - that the bankruptcy problem is not really due to overconsumption, and that is where I part ways with them. Affordable housing is available in many places, though it may not be in the most desireable neighborhood. Finding that affordable housing does not automatically mean that you have to move into a crime-ridden neighborhood, though in your particular area, that may be all there is in your price range.I would argue that if this is a priority for your family, then you broaden your net to include other geographic locations beyond your local area so you can live within your means. The McHouses in our suburbs provide far more room than the average homeowner/family really needs (and have that far-too-expensive tax bill every year as well). We transitioned from perfectly adequate cars to oversized SUVs - our houses are following suit, making it a classic case of overconsumption that has nothing to do with credit card bills and poor budgeting but more to do with trying to keep up with everyone else in the neighborhood.
Rating:
Summary: An "A" for integrity, sympathy for the middle class
Review: One mark of a good book is that there are already several thorough and complementary reviews here on Amazon. Consider these points merely as supplements. To reiterate the authors' primary point, middle class families are increasingly stretching to buy houses in neighborhoods with good schools. They put themselves in a position in which they depend on both parents' incomes. Any disruption of family life -- an illness, taking care of an elderly parent, losing a job and certainly a divorce -- throws the system out of balance and often puts unbearable financial pressure on the family. The theme of the book is bankruptcy among families with children and how to prevent it. The sharks gather when they smell blood in the water. "Loan consolidators" and "loan to own" mortgage lenders press money on these weakened families at usurious rates. The all-to-frequent result is that the lenders foreclose on the house and drive the families into bankruptcy. The authors advocate government action to prevent predatory loan practices. In my (conservative leaning) mind this pits two principles of government against one another. One says that citizens are adults and should be able to make informed decisions about their own lives; we don't need the Government to protect us from getting fat eating at McDonalds. The other says that citizens must be protected from dangers they cannot adequately evaluate; we need the FDA to protect us from untested drugs. In the case of lending, given the great harm that unscrupulous lenders can do to families, and the difficulty a family must have in evaluating the risks of taking on loan obligations, I must agree with the authors that a regulated loan environment makes sense. We need usury laws such as were commonplace until a couple of decades ago. Not coincidentally, Citibank is the most profitable corporation in America this quarter, surpassing every company such as Exxon, GM and Microsoft that actually makes things. What DOES Citi do to make that money? For a major clue, examine the flood of credit offers that show up daily in your mailbox. The authors make a point of documenting Hillary Clinton's duplicity on this loan issue. They say she was uncommonly bright, able to grasp the issue immediately when they presented it to her as First Lady. As a senator from New York, however, she quickly abandoned the interests of the little guy for the financial support of New York bankers. Though the "two income trap" affects women somewhat more than men the authors show an appealing sympathy for the poor guys in the equation. They emphasize that most men do fulfill their child support obligations. Divorced men are seldom a whole lot better off than the wives who (for the most part) make the choice to leave them. The answer is not to squeeze more money out of the missing dads but to keep families from getting into trouble in the first place. The search for good schooling is the most significant factor driving families to overcommit themselves financially. This ties directly to the question of why public schools are failing. In my view the courts' and government's fingerprints are all over this mess. It is a classic case of elites in Washington, whose own kids are not affected because they go to private schools, attempting to eliminate longstanding and yet little understood problems they perceive in society by mandating solutions from above. Solutions imposed on schools have involved using busing to disrupt the integrity of neighborhood schools, imposing sex education, removing any mention of religion, Title IX rearrangement of boys' and girls' athletics, imposition of standardized testing, homogenizing textbooks into a bland pap offensive to nobody. Bottom line, nowhere are public schools what they used to be, and parents are involved in a spending war trying to find the closest remaining approximations by buying into the right neighborhoods. Other reviewers have suggested home schooling and private schools as an alternate remedy. Washington D.C. leads the way. Washington D.C. doesn't have much of a middle class, but such as there is mostly sends its kids to private school. Home schooling is burgeoning in Washington's suburbs, especially among African Americans. I'll close with a minor point of disagreement. The authors go out of their way to exculpate two-income families from the crime of consumerism. Nah. Those SUVs, bass boats, kitchen makeovers and the like are not essential. All kinds of people succumb to the unrelenting pressure of advertising and the search for status. How many dads show up with a new Mercedes or Miata a few months before the family breaks up? America today defines itself by what it consumes. It is unrealistic to assume that people's habits will change, that we will return to the thrifty habits of our grandparents, but many of the "Two Income Trap" problems would disappear if we recaptured their frugality, their sense of community, and perhaps their commitment to the institution of marriage.
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