Home › Forums › Financial Markets/Economics › Quantitative Easing Benefits the Super-Elite … And Hurts the Little Guy and the American Economy
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SK in CV.
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December 17, 2012 at 6:47 AM #756430December 17, 2012 at 6:48 AM #756431
CoronitaParticipant[quote=CA renter]Mass default.
In my scenario, the government would not have taken on all that debt — certainly not to prop up asset prices, which is totally unproductive and does nothing to grow the economy in a sustainable way. It was a choice that was made to benefit the few at the expense of many.
What ultimately matters is the purchasing power of those at the bottom of the economic pyramid. When wealth is concentrated at the top, everything crumbles.
The Fed/govt has only been addressing asset prices, increasing the purchasing power/control of resources of the most wealthy, while those at the bottom steadily lose more ground. The only reason Joe Sixpack isn’t taking on even more debt in order to maintain purchasing power (what the Fed has been trying to push) is because he can’t. All income is being spent, and there is nothing left over from which he can make new purchase or take on more debt. That’s why interest rates are so low right now — to make the debt burden a little lighter for J6 so that he can take on even more debt so he can spend more. This is not sustainable, and will end up making our problems much, much worse (which they already have, IMHO).
BTW, the only kind of inflation that makes payments less burdensome is wage inflation. We are not getting that outside of a few industries. Cost inflation, without wage inflation, is very, very destructive…far more destructive than deflation, IMO.[/quote]
Um OK. If you say so.
December 17, 2012 at 7:32 AM #756432scaredyclassic
ParticipantThings can bring tension.
You get a BMW, it needs more maintenance, you gotta insure it, etc etc.
My wife says this speculation is stupid and I should focus on making her happy now.
December 17, 2012 at 7:38 AM #756434CoronitaParticipant[quote=squat300]Things can bring tension.
You get a BMW, it needs more maintenance, you gotta insure it, etc etc.
My wife says this speculation is stupid and I should focus on making her happy now.[/quote]
The first 4 years, maintenance is free (less than an accord)… The trick is to ditch it after 4 years…And do it the good old american way… You don’t need to pay cash for it, you just need to take out a lease and make minimum payments…
And if you run your own business, you can write off a portion of it probably too.See, you can eat your cake and have it too…Sort of…
I think more people get into trouble taking out a student loan while studying in an area that won’t lead to a job that can possibly pay back the loan but nevertheless under the false pretense to “better oneself” versus someone who has a job that leases a BMW… Think about that one…
December 17, 2012 at 8:25 AM #756435SK in CV
Participant[quote=flu][quote=squat300]Things can bring tension.
You get a BMW, it needs more maintenance, you gotta insure it, etc etc.
My wife says this speculation is stupid and I should focus on making her happy now.[/quote]
The first 4 years, maintenance is free (less than an accord)… The trick is to ditch it after 4 years…And do it the good old american way… You don’t need to pay cash for it, you just need to take out a lease and make minimum payments…
And if you run your own business, you can write off a portion of it probably too.See, you can eat your cake and have it too…Sort of…
[/quote]
Just to clarify….are you talking about the wife or the BMW? Because I leased my first one very short term. Wasn’t a total failure, just didn’t last too long. Next one I purchased outright and kept until it was fully depreciated. Got decent milage, but it cost me a ton of money to get rid of at the end.
December 17, 2012 at 8:39 AM #756437CoronitaParticipant[quote=SK in CV][quote=flu][quote=squat300]Things can bring tension.
You get a BMW, it needs more maintenance, you gotta insure it, etc etc.
My wife says this speculation is stupid and I should focus on making her happy now.[/quote]
The first 4 years, maintenance is free (less than an accord)… The trick is to ditch it after 4 years…And do it the good old american way… You don’t need to pay cash for it, you just need to take out a lease and make minimum payments…
And if you run your own business, you can write off a portion of it probably too.See, you can eat your cake and have it too…Sort of…
[/quote]
Just to clarify….are you talking about the wife or the BMW? Because I leased my first one very short term. Wasn’t a total failure, just didn’t last too long. Next one I purchased outright and kept until it was fully depreciated. Got decent milage, but it cost me a ton of money to get rid of at the end.[/quote]
lol.
December 17, 2012 at 8:46 AM #756438ParticipantMy wife says no one knows the future.
December 17, 2012 at 8:50 AM #756439ParticipantI used to pay 20 cents for a comic book. Now it’s 4.00. But my kid reads them free at Barnes and noble. I don’t know. In the future, comi books will be 12 energy units but you will be able to read all the old ones for 1 energy unit on the computer in your brain.
December 17, 2012 at 8:57 AM #756440ParticipantMy 17 year old is extremely optimistic … We spent Sunday at Joshua tree climbing.
Lots of dirty camping climber hobos w shitty cars.
Saw a bumper sticker I want…
Big Dalai lama smiling with the caption….Be Stoked
Yeah dude
Be stoked….
December 17, 2012 at 11:40 AM #756457UCGal
Participant[quote=squat300]My 17 year old is extremely optimistic … We spent Sunday at Joshua tree climbing.
Lots of dirty camping climber hobos w shitty cars.
Saw a bumper sticker I want…
Big Dalai lama smiling with the caption….Be Stoked
Yeah dude
Be stoked….[/quote]
My brother was a climbing bum for many years. He used to spend every “day-after-christmas” thru new years in Joshua tree. Did that for almost 20 years. He drove a beat up ford Pinto with the back seat removed, replaced with a permanently installed padlocked wood box – to hold his climbing gear. The car and the gear were his entire net worth for more than a decade post college.It was the 80’s – so his bumper stickers were “save mono lake” and “death to the shah”. Different times.
He also spent a spring/summer/fall season living out of the same car in Tuolomne meadows, above Yosemite.
Yeah – dirty hippy camping rock climbing bums. I know the type. 🙂
December 17, 2012 at 12:31 PM #756463SD Realtor
ParticipantFunny, you keep going back to money and I keep talking about a quality of life. You don’t need money to have a decent quality of life, that goes without saying. However living in a society with quality goods and services sure is nice. Same thing with availability to basic necessities and not having to scramble for things.
I am sure it is alot nicer living in a spacious home in Temecula then living in a 1 or 2 bedroom apartment in Riverside. You may not care but your kids and wife sure would.
You can keep reciting your optimistic mantra and ignoring the real financial condition of the country.
December 17, 2012 at 4:01 PM #756484ParticipantOk. We will be unhappier in the future.
I can see that possibility too.
In fact I feel less optimistic than I did this morning
December 17, 2012 at 5:16 PM #756491CA renter
Participant[quote=squat300]A man will be far happier with a loaf of bread, some cheese he brought home to loving children by bicycle than steaks served by a bitter wife and eaten with ungrateful welps he picked up in a Ferrari.[/quote]
Brilliant!
December 17, 2012 at 6:48 PM #756498ParticipantQuality goods and serice are nice. However, there’s so much crap!
Think about gyms as an example. If you ditched all the machines and just had a room full of barbells and a few jump ropes, would life suck?
No. We’d actually get stronger. All those machines are crap. Crap!!!!!a distraction at best… In that case, one would be better off with less.
The land will stay the same. There’s still going to be nice and not so nice laces to live. There are still going to be hot and not hot girls. Life will probably be similar.
On the other hand maybe it is a giant ponzi scheme poised to cataclysmic ally collapse and leave us with nothing.
December 17, 2012 at 6:52 PM #756499ParticipantAm I happier with a new accord than an 89 civic? No. Definitely not. It was amusing to have a new car, the ac was nice the first few times but I’ve accommodated and don’t get pleasure from it anymore. It’s ok. Basically it’s the same, happiness wise.
I think we all habituated to most everything we get such that things just don’t give you a charge after a bit.
Maybe people won’t be able to vacation in Europe. Will they be less happy. Naaaah. It’ll just be what it is
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