HIGH INFLATION WILL EAT YOUR POTENTIAL SAVINGS

[bubble_contagion]

You assume the housing market is problematic across the USA. The Feds will not try to save the housing market instead of the U.S. Dollar because, on a national average, housing is not extremely overvalued. It is bubble markets like San Diego that will be toast since the Feds couldn’t care less about a few people that bought overpriced properties in a few cities.

Having said that, I would recommend to move that cash to other currencies or assets.

[Coronita]

No useful comment from me on this one. I’m on the fence….

But…

WHY ARE YOUR YELLING? My ears, my ears.
Easy there fella on the ALL CAPS 🙂

[Coronita]

No useful comment from me on this one. I’m on the fence….

But…

WHY ARE YOUR YELLING? My ears, my ears.
Easy there fella on the ALL CAPS 🙂

[cr]

There are several banks offering FDIC insured savings/checking accounts at decent rates. I have one at a little over 5%, higher than my school and auto loans. It’s not the 10% YTD gain of the stock market, but with the likelihood of rates going up, but benefits are inverse.

I think everyone here has pretty much covered the answer.

The value of the dollar is falling daily to the Yuan also, decreasing our buying power in China. The devalued dollar is going to be the bigger issue.

The FED will have no choice but to raise rates, and you can infer as more of the widespread dishonesty in housing the last 5 years surfaces, it’s more likely that lenders will be expected to help those facing foreclosure rather than the government.

I don’t think anyone who bought a house they couldn’t afford in 2003 is going to be happy with their decision in 2010, when those who saved money for the last 7 years put a 20% down payment on the same house at a 30-50% lower price than today. Even if rates don’t go up, and savings loses value to inflation, it’s still better than a mountain of debt and negative equity.

[cr]

There are several banks offering FDIC insured savings/checking accounts at decent rates. I have one at a little over 5%, higher than my school and auto loans. It’s not the 10% YTD gain of the stock market, but with the likelihood of rates going up, but benefits are inverse.

I think everyone here has pretty much covered the answer.

The value of the dollar is falling daily to the Yuan also, decreasing our buying power in China. The devalued dollar is going to be the bigger issue.

The FED will have no choice but to raise rates, and you can infer as more of the widespread dishonesty in housing the last 5 years surfaces, it’s more likely that lenders will be expected to help those facing foreclosure rather than the government.

I don’t think anyone who bought a house they couldn’t afford in 2003 is going to be happy with their decision in 2010, when those who saved money for the last 7 years put a 20% down payment on the same house at a 30-50% lower price than today. Even if rates don’t go up, and savings loses value to inflation, it’s still better than a mountain of debt and negative equity.

[JWM in SD]

Sorry, but you’re not fooling anyone here with that canard. The FED is not going to save your overpriced, debtladen lifestyle by hyperinflating and monetizing your gains. That’s not in their best interest. Their primary responsiblity is to protect the USD or we lose reserve currency status (oil denominated in USD)…period…end of discussion.

We have already had massive inflation in the form of M3 credit liquidity growth the manifistation of which was the housing bubble. Eventually, people can no longer service the debt loads and the foreclosure rate spikes are proving that we are at that point.

The only place we are headed for is Asset Price Deflation and Credit Destruction. We are already 77 dead lenders into the latter.

[JWM in SD]

Sorry, but you’re not fooling anyone here with that canard. The FED is not going to save your overpriced, debtladen lifestyle by hyperinflating and monetizing your gains. That’s not in their best interest. Their primary responsiblity is to protect the USD or we lose reserve currency status (oil denominated in USD)…period…end of discussion.

We have already had massive inflation in the form of M3 credit liquidity growth the manifistation of which was the housing bubble. Eventually, people can no longer service the debt loads and the foreclosure rate spikes are proving that we are at that point.

The only place we are headed for is Asset Price Deflation and Credit Destruction. We are already 77 dead lenders into the latter.

[barnaby33]

JWM, we aren’t 77 lenders into the latter. We are 77 brokers of loans into it. Most of the cash was fronted by other parties.

Now if you can show me that the suppliers of the money are destroying it (by not lending it out) then your statement holds real value.

Josh

[barnaby33]

JWM, we aren’t 77 lenders into the latter. We are 77 brokers of loans into it. Most of the cash was fronted by other parties.

Now if you can show me that the suppliers of the money are destroying it (by not lending it out) then your statement holds real value.

Josh

[HereWeGo]

The bond markets are slowly turning against the opinion that we will see rate cuts this year.

[HereWeGo]

The bond markets are slowly turning against the opinion that we will see rate cuts this year.

[JWM in SD]

Uhh, the lenders are the ones who pulled the plug on the brokers. Merrill Lynch is like the grim reaper of subprime lenders. They pulled the plug on New Century post haste when they figured out that the loans they were buying were garbage. It is the lenders pulling the plugs.

[JWM in SD]

Uhh, the lenders are the ones who pulled the plug on the brokers. Merrill Lynch is like the grim reaper of subprime lenders. They pulled the plug on New Century post haste when they figured out that the loans they were buying were garbage. It is the lenders pulling the plugs.

[blahblahblah]

JWM is right, MBS purchases have a clause where they can force the brokers to buy them back if foreclosures reach a certain threshold, and that’s what’s been sending the brokers under.

[blahblahblah]

JWM is right, MBS purchases have a clause where they can force the brokers to buy them back if foreclosures reach a certain threshold, and that’s what’s been sending the brokers under.

[Author]

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