If anyone lacks the common sense to understand that if 'Money' is continually printed, with nothing to back it up other than pie-in-the-sky promises, which inevitably leads to every "Dollar" being worth less, and the subsequent inflation, then I'd suggest they go back and study Jr. High economics.
Went to Home Depot today for a few pieces of lumber. Fainted, then had to take out a home loan.
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Don't worry, "they" will come up with something pretty soon again to make our lives once more a living hell. Stay tuned!
Prices sinking 40% is impressive until you realize that prices went up 600%.
Lumber prices sink below $1,000 for the first time since March, now down 40% since May's record high
Scott Olson/Getty Images Lumber prices traded below $1,000 per thousand board feet on Monday for the first time since March. Lumber futures a...
Prices are still coming down. About $967 from $1009 just the day before.
I’ve been looking at all the parts I bought for my son’s swingset four months ago. Unfortunately I have yet to buy the four by fours or the four by sixes.
Notice when the graph ends. How convenient...
Show an unbiased graph that runs until today. Then one that includes all the proposed deficit spending...
I showed you you were wrong.
Having said that, don't get me wrong. Deficit spending is a necessary tool at times, but not as an answer to everything.
"Deficits don't matter" was an insane way to run this country, IMO.
This is true for both the Fed and for personal finance.
Let me explain. There is good printing money and bad printing money.
Printing money to allow governments to spend spend spend leads to deficits and inflation. History shows this is a gift to the rich and in extreme cases can bankrupt a country (such as Venezuela).
Printing money to stimulate the economy is necessary to prop up an economy that is not spending enough, such as in bad times when the economy is slowing too much. A recent example is the American Recovery Act of 2009. It pulled our economy out of a horrible situation. Surely you remember how bad the outlook was...
Simply put, the Fed should be printing money not because the government needs it to, but rather because the economy does.
It really is not how much money the Fed prints, rather it is why it is printing that money.
I hope this helps.
The idea borrowing more than you intake has been going on since the 1980’s and likely earlier. It seems to work. We recently cut taxes and made the debt worst followed by increase spend. Some crash and burns but sit tight on cash and pounce at right time.
I agree with you deficit spending started as a big way quite a while ago. But I am not sure about "It seems to work."
Works for whom? People in high tax brackets? Yes. People with disposable income to invest in markets including real estate? Absolutely.
Others, not so much.
Some numbers for you:
The top 1% by net worth own about 40% of the stock market and own about 50% of direct stocks.
The top 10% own about 85% of the stock market and own over 90% of direct stocks.
The bottom 50% own 1% of the stock market and as a group own zero direct stocks.
The remaining 40% the families (50% to 90%), own about 15% of the stock market and own about 7% of direct stocks.
The vast majority of people in the United States who do own equities have no idea what they own, as their ownership is not through direct purchases, it is from employeer 401K plans and such.
Good luck to you in your investing!
No, you showed me what you wanted me to swallow without question.
I like the example of Venezuela. Should I tell you about the time we spent living in South America?
I don't need any advice on how the economy works or doesn't work, thanks.
You don't need to wait for Uncle Sam / Congress. You can send more to Uncle Sam today if you really feel he knows better than you with respect to how to spend what you earn:
Bureau of the Fiscal Service - Public
fiscal.treasury.gov
When you are in the lowest tax bracket, the consequences are probably minimal.
Their votes are bought with (other) taxpayer's money. Or money borrowed that future generations will still be paying interest, but no principle. The debt never goes down because no principle is ever paid. I think we are up to 7% of Federal Spending is interest on the debt.
Please forgive me, but I am not asking you to swallow anything. I am simply showing you the numbers.
You are free to do as you choose.
As far as how the economy works, I wanted to elaborate on your post #81 regarding the Fed printing money.
A statement like that is simply wrong. There are good reasons and bad reasons for the Fed to print money.
Perhaps you were referring only to the bad reasons? I cannot say as they are your words.
I explained the differences in detail. I hope this helps...
Thanks, but I pay taxes according to the tax laws. I give directly to causes I believe in, such as education and supporting the less fortunate.You don't need to wait for Uncle Sam / Congress. You can send more to Uncle Sam today if you really feel he knows better than you with respect to how to spend what you earn:
Bureau of the Fiscal Service - Public
I do believe the tax structure is unfair, but that's just my 2 cents.
And your source for “some numbers” is……….??
The thing about any economic theory, is that it describes "in general" and "over the long term". You cannot always guarantee the reality in the short term follows the in theory in long term, right away.
Real estate is a local thing, you cannot predict what would happen in Nebraska vs Silicon Valley, they run on different income level, different cost basis, different demand, and different supply. Yes the undocumented jobbers and lumber will go wherever money is at, and work from home might change that a bit. When you compare to the rest of the world you would be surprised, life goes on when gas price is $8 / gal and home price can be near Silicon Valley level everywhere else outside of US. The sky doesn't collapse.
I have been very careful this year with tenant selection, basically I was waiting for the perfect tenants and keep the good tenants with a lot of incentive, and left my unit vacants instead of renting to any iffy tenants (single mom in the middle of a divorce, people with unstable income from restaurant business, low income family with teenagers, low income family with fancy cars, people with too low of a credit score obviously), a lot of them I would have accepted back in the normal times but with eviction ban I'm being extra careful, sorry I am not helping you out when I might end up holding the bag. However if you are a perfect candidate I will give you a hefty discount whether you are current or new tenants. It is expensive to be poor.
Real estate is a local thing, you cannot predict what would happen in Nebraska vs Silicon Valley, they run on different income level, different cost basis, different demand, and different supply. Yes the undocumented jobbers and lumber will go wherever money is at, and work from home might change that a bit. When you compare to the rest of the world you would be surprised, life goes on when gas price is $8 / gal and home price can be near Silicon Valley level everywhere else outside of US. The sky doesn't collapse.
I have been very careful this year with tenant selection, basically I was waiting for the perfect tenants and keep the good tenants with a lot of incentive, and left my unit vacants instead of renting to any iffy tenants (single mom in the middle of a divorce, people with unstable income from restaurant business, low income family with teenagers, low income family with fancy cars, people with too low of a credit score obviously), a lot of them I would have accepted back in the normal times but with eviction ban I'm being extra careful, sorry I am not helping you out when I might end up holding the bag. However if you are a perfect candidate I will give you a hefty discount whether you are current or new tenants. It is expensive to be poor.
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Lumber futures are down about 50% recently. Will take some time for that to work it’s way down to the retail sector.
Because you guys keep sending the addicts our way with free one way bus pass (to be fair we send them to Hawaii too so it is not like we are saints). There are certain things that should not be a local or state level policy, like drug addiction treatment, immigration, anti-discrimination, military spending, and education budget. Imagine Idaho refusing to pay for the navy or airforce because they are in the middle of the nation and want Alaska, Hawaii, Florida, California, and NY to pay for them all. We are doing that to a lot of our stuff like drug addiction treatment and K12 education.
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