OT: Why is Warren Buffet always ahead of the game?
- Thread starter itseasyas1-2-3
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2.5yrs ago....my home was $365K w/3.2%
Today that home is worth north of 400 and rates are now what? 6.5(ish) no way we could afford that and we both have pro jobs and are about as money conscience as possible with no car payments...I pity the younger generation who will never sniff home ownership...pisses me off what our leadership has done to this country in a few very short years.
So you are saying the enemy from within talk didn’t happen? Or the confirmation in several subsequent rallies/interviews? That is real stuff by a presidential candidate, not some obscure DOD document that was renewed.
Are you one of those guys that says the wall street journal is infiltrated by “libtards” when it is owned by Rupert Murdoch?
People will be able to buy houses - they did back in the day when there were double-digit interest rates on home loans.
Fry cooks can't figure out how both things could be true.
Probably just a coincidence that sales are at their lowest level in 2 decades. Couldnt be the reasons I listed. Nope.
....and I never said nobody will ever be able to buy a home again...but its is now out of reach for a lot of people
I obviously misunderstood your post “I pity the younger generation who will never be able to sniff home ownership” to mean all the younger generation, my bad on that.
I agree 100% that interest rates and inflation have caused home buying to be crazy difficult vs the relative ease of the previous 15 years. But it’s not just the younger generation right now. Most older couples wouldn’t move or upgrade due to the interest rates so it’s creating a bit of a traffic jam.
...and in re reading my reply I sounded kinda snotty. Sorry. Agree with you 100% on what I quoted
It started after Clinton left office.
You misunderstand who I am. I don't need anything. When people wake up and figure out these little Federal Reserve Notes are nothing but debt instruments and they go away, there is this little thing called the Constitution.
In the Constitution you think you can find the word "dollar?" You will see what real money is and has been since the inception of his country. Just because a bunch of retail clerks don't understand, doesn't mean I neeed whatever they're trying to sell.
Let me give you a quick lesson on gold and silver. Since 1720 B.C through 1870 the ratio in value between gold and silver ranged from a low of 2/1 to a high of 15.5/1. It's been 90/1 and now recently its 80/1. For thousands of years gold and silver have been recognized as money.
Fiat currencies come and go, just like the USD will eventually. Just because some retail clerks don't know shit doesn't mean the world will stoop to their intellectual level. Eventually all fiat currencies revert to their real intrincic value of 0.
In Weimar, Germany hyperinflation became so bad that you could go to a restaurant, pay maybe, 2,000.00 for a cup of coffee,and the refill would be a higher price. Someone would park a wheel barrow overflowing with German currency, go into the shop to get something, come back out, and the money was dumped on the street and the wheel barrow had been stolen. Prices can really heat up when the right set of circumstances occur.
We're not there yet, and probably never will be, but once everyone figures out the USD is worthless in purchasing power, the light will come on.
Older generations never enact anything besides what directly benefits themselves. That's nothing new. Just look at the push to get rid of property taxes in Nebraska and how incredibly regressive of a tax policy that is. It's also going to push property valuations and rents even higher, which is also just another **** you to the younger generation and low income groups, all while the rich just keep getting richer.
Of course the Wall Street Journal is shit. You realize you are NOT supposed to be talking politics on this site? Either knock it off with the political bullshit or at least get a clue.
It's no wonder I had you on Ignore for months.
But you stated
"I’m camp deflation.
Government spent like crazy to save housing back in ‘08-‘12 and that didn’t do anything.. we still had a ton of deflation."
So my reply to you was basically that housing did not have deflation at all..
Interest rates never should’ve gotten below 4%, but they did and here we are. I’m not necessarily complaining because I’m a pre-Covid mortgage guy. It sure did screw things up though for a lot of regular people.
I think wages have gone up. Heck they doubled them in California recently and lot's of union jobs are getting big pay increases. They are catching up, as prices and salary's don't go up at the same time.
it's all good..
I did some research into gold back in 2017, and the IMF was selling a lot of it's gold back in the day. They implemented the SDR and the countries that were part of the IMF sent their gold in to fund that operation. Basically, countries had to anny up and instead of sending currency, they sent their gold, which they didn't want... too expensive to custody, expensive to move around, and it's price has been repressed for such a long time, it makes you wonder why?
Anyway, now all of a sudden these central banks want their gold back, and maybe it will jump in value and be worth what it should be (which is something like 6-9x what it's current value is) and then every so many years it doubles, but it never reaches the price that it's supposed to be.. they say it's rigged.
Why would I want to hold a rigged asset? or one that doesn't appreciate at the same pace as inflation?
To me, holding a piece of property is a better hedge against inflation than any precious metal could be.
The top central banks buying gold per AI are (
- National Bank of Kazakhstan:
- Monetary Authority of Singapore:
- Central Bank of Oman:
- National Bank of the Kyrgyz Republic: .
- Czech National Bank:
- Central Bank of Turkey:
- Reserve Bank of India (RBI):
- Central Bank of Uzbekistan:
- Central Bank of Qatar:
- Central Bank of Russia: )
I'm on the contrarian side and think these people are all being sold a scam.. some shiny object.
I could be wrong, and it's okay.
As to manufacturing, a lot of it has been near shored in Mexico, but other things are being planned for the US like chip manufacturing, more nuclear plants being bought up by tech firms and I suspect more nuclear plants eventually as well.
One of these days, they might just annex Mexico and Canada too.
As to MMT, I have no idea if it is even plausible, but from an academic sense, they try to match up the inflation with the deflation to cancel things out, seems potentially plausible, but I don't forsee property prices going down a whole lot.
They have to inflate the currency to deflate the debt, and it's a vicious circle that probably won't end in our lifetimes.. at least I hope it doesn't, because when it finally does blow up, it's gonna be a mad max kinda world for awhile.
I missed the entertainment that a thread like this provides. Someone bump the bitcoin thread!
I think at one point Japan had negative interest rates!
I am at 2.25 and I am a little pissed I missed out on a flat 2.0
Well Nikki, we definitely see things differently, and that's cool. In regards to physica gold, I actually pay attention to guys who own the gold companies and can verify their numbers, not AI. The US says it has over 8,000tons of gold, I'd wager I have more physical gold than this country has, and I have not even a speck of 8 tons. Its hard to have confidence in the quantity since Fort Knox hasn't been audited since the 1950's.
If you look at a governments debt deficit and divide that amount by ounces/tons of gold to support that debt, the actual real price of gold is staggering. But, you and I are going round and round on this and I know we each just believe what we believe, so we will see what plays out, LOL.
Owning property/land is really good the only hangup is that its not necessarily liquid, and it takes buyers with deep pockets to make a transaction happen in a short period of time.
Regards to the wages staying up with things. I heard or read something that since 1980 it's not even close. I'll try to find it, cause I only listen to reputable sources.
Good to be chatting with you again, its been awhile.
Drama. A 28 year old I know just bought a house 2 weeks ago in a town with limited housing. It was a 2 bedroom instead of a 3 but that's life. That's what people did throughout our countries history. These fake 3% interest weren't sustainable. Anyone who thought otherwise was a fool.
Boomers had interest rates at 16% and I bet they bitched less than people these days. We are at 2006 interest rates. Cry me a river.
I bought a house in 16. I unfortunately cant remember the mortgage rate off the top of my head. I believe it was pretty good as it was a great time to buy. Anyhow, zillow values show my home has went up 55% in value. Not sure if that's even accurate, but it means that unless I move out of state or to a different city, I'm dying in that house or a nursing home.
Feel bad knowing that my kids are going to be in a crazy market, but I'll sure as hell be teaching them proper money management, and god willing help them start saving soon.
Feel bad knowing that my kids are going to be in a crazy market, but I'll sure as hell be teaching them proper money management, and god willing help them start saving soon.
I didn't know how to buy a house, but my son did and he showed me how. Boy am I glad I did, the only thing you can count on is housing. Everything else is fake. Now I own 4200 houses. I stopped buying them, but I've just kept all of them for my heirs who will inherit them. I really don't need housing actually. Just a sleeping bag and a spot on the ground is good enough for me! Thank goodness for my son though, I own an entire town in Michigan! Not for me though.
Yeah, I think my parents said their first house came with a nice 20% interest rate!
If you live there for 40 years, its likely to increase about 5X's whatever your purchase price was. Of course, 40 years from now inflation will have dramatically increased.
Just look at homeowners insurance, property taxes and they have skyrocketed as a proportion of the purchase price, so its gonna be more expensive just for the basic costs with the mortgage.
Yet, renters will get the same treatment from the landlords cause those increased prices have to be absorbed from somewhere.
I saw a chart back in the day where in the 1950’s - houses were obviously smaller but on average people spent approximately a year’s worth of their wages on a home. Now people spend 3-6x times their annual wage on a home. There are many young adults think they should move into a similar house as they left from their parents. Difference is the parents spent their whole life building to that point - it wasn’t their starting point.
We can talk about gold being used for money throughout history - when was the last time it was actually used as money? I’m genuinely curious.
In a hyperinflation situation where its cost $2000 for a cup coffee. Do you think gold keeps the same value in that situation? Would an ounce of gold be worth $5.5M? How much gold would it take to buy a cup of coffee?
Are you the fake Dr? I lose track of you clowns.
Huh? Housing crashed from 08-12. It certainly deflated and I think it will deflate again.
But the prices and carrying costs were much cheaper.
The standards and desires have been raised. People want to skip the starter home. Which i understand, because I skipped the starter home after the crash. But I also waited it out without whining and moaning about interest rates while I rented.
Trying to follow. You honestly believe you have more gold than the US Government? Since it hasn’t been audited in 70 years it has to have less? There is no way it it could have more?
You can’t just blindly pass your costs to the renter. There is a market rate . Newby investors that jumped into the game in 2022 will get rekt.
Japan is begging for inflation. They can’t get it.
35 year mortgage there is a little over 3%
yes there was a correction (i.e. things don't move in a straight line) but it's way up again..
