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51
WookieMan
2023 Mar 8, 9:36pm
WookieMan
2023 Mar 8, 9:36pm
GNL says
You make a valid point, but everything is flawed. If it wasn't you should just be able to buy one car when you're 16 and drive it until you're 95. Possible, but not feasible.
Debt ain't perfect for sure. But nothing is. If I have gold or silver, they're still gonna give me paper money. Guess what, shit hits the fan your physical gold/silver is gone. There's no perfect system. My buddy basically built the most recent JP Morgan investing site as the lead. One of the worlds leading investment banks had to rebuild something that wasn't working.
The way I look at debt is like a product. It's bread, milk, cheese, etc. If you have lactose issues don't eat/drink the milk or cheese. Stick to bread. Debt is milk/cheese for some people. And that's okay. If I call someone a bad person or pussy because they can't eat cheese, that's pure intellectual laziness. I'd say dude, that sucks I love cheese. I can handle cheese (DEBT) and I'm sorry you can't. I'm sure you like other foods though?
That's my line of thought. Some people simply cannot handle debt. That's fine. To say it's bad is absolutely wrong. We've emailed privately GNL You literally don't have a job without other people using debt. I wouldn't have either for 15 years. Rich doesn't have a job (Edit, I believe he does, that came across bad). Hence why I say we'd all be dead. It's all a ponzi scheme, but as long as incomes grow to some extent it's fine. So you get a Chevy instead of a Mercedes. You buy generic at the grocery store. The alternative without debt is literally death. Every working person on this forum is paid with debt....
A lot of good points are made in this comment. Richwicks is correct in that the system is flawed. Either you use debt to control others or you are controlled by debt. I believe this is the system as it is designed. Default is baked into the cake. How many times has the US defaulted? But then the parasite class continues to get bailouts. This time around (covid) everyone got bailed out. This is total fraud.
You make a valid point, but everything is flawed. If it wasn't you should just be able to buy one car when you're 16 and drive it until you're 95. Possible, but not feasible.
Debt ain't perfect for sure. But nothing is. If I have gold or silver, they're still gonna give me paper money. Guess what, shit hits the fan your physical gold/silver is gone. There's no perfect system. My buddy basically built the most recent JP Morgan investing site as the lead. One of the worlds leading investment banks had to rebuild something that wasn't working.
The way I look at debt is like a product. It's bread, milk, cheese, etc. If you have lactose issues don't eat/drink the milk or cheese. Stick to bread. Debt is milk/cheese for some people. And that's okay. If I call someone a bad person or pussy because they can't eat cheese, that's pure intellectual laziness. I'd say dude, that sucks I love cheese. I can handle cheese (DEBT) and I'm sorry you can't. I'm sure you like other foods though?
That's my line of thought. Some people simply cannot handle debt. That's fine. To say it's bad is absolutely wrong. We've emailed privately GNL You literally don't have a job without other people using debt. I wouldn't have either for 15 years. Rich doesn't have a job (Edit, I believe he does, that came across bad). Hence why I say we'd all be dead. It's all a ponzi scheme, but as long as incomes grow to some extent it's fine. So you get a Chevy instead of a Mercedes. You buy generic at the grocery store. The alternative without debt is literally death. Every working person on this forum is paid with debt....
52
GNL
2023 Mar 9, 3:42am
GNL
2023 Mar 9, 3:42am
If/when we go to CBDC as "currency", I believe that is when it becomes apparent that debt is slavery. They'll need to be able to control your $$ just to keep the system fluid.
53
GNL
2023 Mar 9, 4:14am
GNL
2023 Mar 9, 4:14am
The biggest problem imo is that the wrong people/group have/has control over the creation of money. They also fraudulently bailout certain groups. You can't have an honest system without failure...for everyone. Failure can't simply mean that an entity/person can fail without financial pain. The only people that get bailed out are failures. That's insane.
54
Eman
2023 Mar 9, 5:34am
Eman
2023 Mar 9, 5:34am
ECBB,
Debt is a tool….just like a knife. It cuts both ways. With that said, do what makes you feel comfortable. A piece of mind is worth a lot.
What I’ve learned is that liquidity = value during time of crisis like a recession or a job loss. We don’t have access to the liquidity when we’re paying down our mortgage…especially at 3% interest rate.
How about an alternative? Instead of paying $2k/mo towards mortgage principal, put that money in short term CD’s. Quite a few banks offer north of 4% now. Here’s a sheet I recently got from Fidelity.
Once you have amassed enough cash from these CD’s, you can payoff the house at once if you’re desired to. In the meantime, hang onto the liquidity and use CD’s as a way to offset the interest you’re paying on your mortgage?
Debt is a tool….just like a knife. It cuts both ways. With that said, do what makes you feel comfortable. A piece of mind is worth a lot.
What I’ve learned is that liquidity = value during time of crisis like a recession or a job loss. We don’t have access to the liquidity when we’re paying down our mortgage…especially at 3% interest rate.
How about an alternative? Instead of paying $2k/mo towards mortgage principal, put that money in short term CD’s. Quite a few banks offer north of 4% now. Here’s a sheet I recently got from Fidelity.
Once you have amassed enough cash from these CD’s, you can payoff the house at once if you’re desired to. In the meantime, hang onto the liquidity and use CD’s as a way to offset the interest you’re paying on your mortgage?
55
Eman
2023 Mar 9, 5:43am
Eman
2023 Mar 9, 5:43am
To emphasize that debt is a tool, here’s a short read from someone who shared his personal experience going from being a normal Joe to having a net worth of $10M, etc…
“When I finally achieved a net worth of $250,000, I realized that within a few years I could be a millionaire.
By the time I had a net worth of $500,000, I realized that I was absolutely going to be a multimillionaire.
A few years later, when I became a millionaire, I realized that three million would be fairly easy to achieve.
When I reached three million a few years later, I realized that I could be at five and ten million in no time at all.
The time from five million to ten million was much shorter than the time that it took me to achieve my first $250,000.
I had a steady income, just an average paying salary. I was living below my means and that allowed me to invest in, and eventually buy, the company that I was hired 20 years earlier to start. Then I was able to pay myself a little more and receive benefits of business ownership on a larger scale.
Any additional income came from various real estate investments.
Today, nearly forty years later, 95% of my net worth can be attributed to real estate.”
“When I finally achieved a net worth of $250,000, I realized that within a few years I could be a millionaire.
By the time I had a net worth of $500,000, I realized that I was absolutely going to be a multimillionaire.
A few years later, when I became a millionaire, I realized that three million would be fairly easy to achieve.
When I reached three million a few years later, I realized that I could be at five and ten million in no time at all.
The time from five million to ten million was much shorter than the time that it took me to achieve my first $250,000.
I had a steady income, just an average paying salary. I was living below my means and that allowed me to invest in, and eventually buy, the company that I was hired 20 years earlier to start. Then I was able to pay myself a little more and receive benefits of business ownership on a larger scale.
Any additional income came from various real estate investments.
Today, nearly forty years later, 95% of my net worth can be attributed to real estate.”
56
clambo
2023 Mar 9, 6:22am
Of course you can make money in real estate.
The problem is you may have an illiquid net worth; my friends in Santa Cruz own expensive houses but can't raise $1000 in a hurry.
My mutual funds are liquid; I can move a mouse and put a lot of dough in my checking account anytime.
But it's not too bad collecting rent either if you own more than one place.
The problem is you may have an illiquid net worth; my friends in Santa Cruz own expensive houses but can't raise $1000 in a hurry.
My mutual funds are liquid; I can move a mouse and put a lot of dough in my checking account anytime.
But it's not too bad collecting rent either if you own more than one place.
58
AD
2024 Mar 24, 8:53pm
AD
2024 Mar 24, 8:53pm
Patrick says
overdue for a recession but not going to happen (as far as being reported in the economic data) during a re election year with a Democrat in the White House
they let the air out or burst right after the November election just like gas prices conveniently or "miraculously" increased after the 2022 midterms because of how they manipulated and misused the strategic oil reserve
https://nakedemperor.substack.com/p/this-weeks-must-reads-18-24-march
overdue for a recession but not going to happen (as far as being reported in the economic data) during a re election year with a Democrat in the White House
they let the air out or burst right after the November election just like gas prices conveniently or "miraculously" increased after the 2022 midterms because of how they manipulated and misused the strategic oil reserve
59
mell
2024 Mar 24, 8:59pm
AD says
Agreed
Patrick says
https://nakedemperor.substack.com/p/this-weeks-must-reads-18-24-march
overdue for a recession but not going to happen (as far as being reported in the economic data) during a re election year with a Democrat in the White House
they let the air out and burst right after the November election just like gas prices conveniently or "miraculously" increased after the 2022 midterms because of how they manipulated and misused the strategic oil reserve
Agreed
60
Eric Holder
2024 Mar 26, 2:56pm
Eric Holder
2024 Mar 26, 2:56pm
AD says
Gas prices are creeping up now. It can't be good for the incumbent. Why aren't they "manipulating" them down?
gas prices conveniently or "miraculously" increased after the 2022 midterms because of how they manipulated and misused the strategic oil reserve
Gas prices are creeping up now. It can't be good for the incumbent. Why aren't they "manipulating" them down?
61
NuttBoxer
2024 Mar 26, 4:52pm
NuttBoxer
2024 Mar 26, 4:52pm
Price suppression only goes so far. The natural force of the free market cannot be contained forever. Hyperinflation is the only logical outcome of central banking..
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As interest rates rise, the math says that it's better if invest any spare cash rather than pay down debt, which is at a low fixed rate (house, student loan, small car loan). However, particularly with the mortgage, there is something to be said for the peace of mind of having it behind me and owning my home outright. I'm fully funding my 401(k), and have a six month emergency fund, but until now, any "free cash" beyond that, I've been diverting to the mortgage. As I sit right now, the goal is have it paid off in the next 5 to 7 years. With high yield savings paying about 4% right now, that's a 1% spread relative to my 3% mortgage.
As much as I could try to invest in the market 1) I'm not that good, and 2) the market has more or less peaked, and I don't see another major bull market given that we are seeing the end of the "everything bubble". Once I own the house free and clear, then I'll have plenty of "play money" to invest or whatever and hopefully catch the next upswing.