[joec]

Even with deflation, home/condo sale prices will still be supported by what comparable rent prices will be so there is going to be some floor on housing assuming people have jobs in the area and people are willing to live there (unlike Detroit which has neither it seems).

An 80k condo at a 5% rate with 20% down is $410/month. A 2 bedroom in the worst areas of San Diego probably rents for more than double that already.

[joec]

Even with deflation, home/condo sale prices will still be supported by what comparable rent prices will be so there is going to be some floor on housing assuming people have jobs in the area and people are willing to live there (unlike Detroit which has neither it seems).

An 80k condo at a 5% rate with 20% down is $410/month. A 2 bedroom in the worst areas of San Diego probably rents for more than double that already.

[joec]

Even with deflation, home/condo sale prices will still be supported by what comparable rent prices will be so there is going to be some floor on housing assuming people have jobs in the area and people are willing to live there (unlike Detroit which has neither it seems).

An 80k condo at a 5% rate with 20% down is $410/month. A 2 bedroom in the worst areas of San Diego probably rents for more than double that already.

[joec]

No disagreement there, CAR…but the guy from the town Bell getting the 650k/year pension for life is sick.

Too bad every city/county/state official is in on it to again, “get their share” to ever change or fix this issue.

I have no doubt that they would rather all see the city/state collapse, then they resign (like in Bell) before giving back any of their pension money.

If the federal government can even discuss changing social security, raising the retirement age, etc…they should be able to renegotiate pension benefits if the money is simply not there.

Oh wait, they can simply raise sales tax, property tax, call it a car licensing fee and pad their pension further…

Damn, should’ve taken a government/city/state/county job. (oops, a slip there of me wanting to “get mine too”).

[joec]

No disagreement there, CAR…but the guy from the town Bell getting the 650k/year pension for life is sick.

Too bad every city/county/state official is in on it to again, “get their share” to ever change or fix this issue.

I have no doubt that they would rather all see the city/state collapse, then they resign (like in Bell) before giving back any of their pension money.

If the federal government can even discuss changing social security, raising the retirement age, etc…they should be able to renegotiate pension benefits if the money is simply not there.

Oh wait, they can simply raise sales tax, property tax, call it a car licensing fee and pad their pension further…

Damn, should’ve taken a government/city/state/county job. (oops, a slip there of me wanting to “get mine too”).

[joec]

No disagreement there, CAR…but the guy from the town Bell getting the 650k/year pension for life is sick.

Too bad every city/county/state official is in on it to again, “get their share” to ever change or fix this issue.

I have no doubt that they would rather all see the city/state collapse, then they resign (like in Bell) before giving back any of their pension money.

If the federal government can even discuss changing social security, raising the retirement age, etc…they should be able to renegotiate pension benefits if the money is simply not there.

Oh wait, they can simply raise sales tax, property tax, call it a car licensing fee and pad their pension further…

Damn, should’ve taken a government/city/state/county job. (oops, a slip there of me wanting to “get mine too”).

[joec]

No disagreement there, CAR…but the guy from the town Bell getting the 650k/year pension for life is sick.

Too bad every city/county/state official is in on it to again, “get their share” to ever change or fix this issue.

I have no doubt that they would rather all see the city/state collapse, then they resign (like in Bell) before giving back any of their pension money.

If the federal government can even discuss changing social security, raising the retirement age, etc…they should be able to renegotiate pension benefits if the money is simply not there.

Oh wait, they can simply raise sales tax, property tax, call it a car licensing fee and pad their pension further…

Damn, should’ve taken a government/city/state/county job. (oops, a slip there of me wanting to “get mine too”).

[joec]

No disagreement there, CAR…but the guy from the town Bell getting the 650k/year pension for life is sick.

Too bad every city/county/state official is in on it to again, “get their share” to ever change or fix this issue.

I have no doubt that they would rather all see the city/state collapse, then they resign (like in Bell) before giving back any of their pension money.

If the federal government can even discuss changing social security, raising the retirement age, etc…they should be able to renegotiate pension benefits if the money is simply not there.

Oh wait, they can simply raise sales tax, property tax, call it a car licensing fee and pad their pension further…

Damn, should’ve taken a government/city/state/county job. (oops, a slip there of me wanting to “get mine too”).

[joec]

It’s sad and we’re probably all guilty in some aspect of our lives, but society in the past 30 years seems all about people “getting theirs” and damn everyone else. One reason why exec pay is now 500x the avg worker vs 30x in the past.

This happened during the housing boom as well with many guilty parties and is happening with city governments/pensions.

Could people living in cities simply say, no more. Let’s just have the city (county?/state?) file for bankruptcy and then, we can renegotiate and toss out these obscene pension contracts?

You keep reading that this or that pension can’t be changed no matter what and when push comes to shove, if you’re bankrupt, I don’t think there should be much choice in keeping some of these things where the folks involved were simply ripping off the community.

Like the auto companies or the airlines, you either renegotiate or the whole company goes under and then, you get paid out cents on the dollar from the pension guarantee corp…

After that happens, maybe individual smaller communities can simply hire their own and start over without these bloated liabilities.

[joec]

It’s sad and we’re probably all guilty in some aspect of our lives, but society in the past 30 years seems all about people “getting theirs” and damn everyone else. One reason why exec pay is now 500x the avg worker vs 30x in the past.

This happened during the housing boom as well with many guilty parties and is happening with city governments/pensions.

Could people living in cities simply say, no more. Let’s just have the city (county?/state?) file for bankruptcy and then, we can renegotiate and toss out these obscene pension contracts?

You keep reading that this or that pension can’t be changed no matter what and when push comes to shove, if you’re bankrupt, I don’t think there should be much choice in keeping some of these things where the folks involved were simply ripping off the community.

Like the auto companies or the airlines, you either renegotiate or the whole company goes under and then, you get paid out cents on the dollar from the pension guarantee corp…

After that happens, maybe individual smaller communities can simply hire their own and start over without these bloated liabilities.

[joec]

It’s sad and we’re probably all guilty in some aspect of our lives, but society in the past 30 years seems all about people “getting theirs” and damn everyone else. One reason why exec pay is now 500x the avg worker vs 30x in the past.

This happened during the housing boom as well with many guilty parties and is happening with city governments/pensions.

Could people living in cities simply say, no more. Let’s just have the city (county?/state?) file for bankruptcy and then, we can renegotiate and toss out these obscene pension contracts?

You keep reading that this or that pension can’t be changed no matter what and when push comes to shove, if you’re bankrupt, I don’t think there should be much choice in keeping some of these things where the folks involved were simply ripping off the community.

Like the auto companies or the airlines, you either renegotiate or the whole company goes under and then, you get paid out cents on the dollar from the pension guarantee corp…

After that happens, maybe individual smaller communities can simply hire their own and start over without these bloated liabilities.

[joec]

It’s sad and we’re probably all guilty in some aspect of our lives, but society in the past 30 years seems all about people “getting theirs” and damn everyone else. One reason why exec pay is now 500x the avg worker vs 30x in the past.

This happened during the housing boom as well with many guilty parties and is happening with city governments/pensions.

Could people living in cities simply say, no more. Let’s just have the city (county?/state?) file for bankruptcy and then, we can renegotiate and toss out these obscene pension contracts?

You keep reading that this or that pension can’t be changed no matter what and when push comes to shove, if you’re bankrupt, I don’t think there should be much choice in keeping some of these things where the folks involved were simply ripping off the community.

Like the auto companies or the airlines, you either renegotiate or the whole company goes under and then, you get paid out cents on the dollar from the pension guarantee corp…

After that happens, maybe individual smaller communities can simply hire their own and start over without these bloated liabilities.

[joec]

It’s sad and we’re probably all guilty in some aspect of our lives, but society in the past 30 years seems all about people “getting theirs” and damn everyone else. One reason why exec pay is now 500x the avg worker vs 30x in the past.

This happened during the housing boom as well with many guilty parties and is happening with city governments/pensions.

Could people living in cities simply say, no more. Let’s just have the city (county?/state?) file for bankruptcy and then, we can renegotiate and toss out these obscene pension contracts?

You keep reading that this or that pension can’t be changed no matter what and when push comes to shove, if you’re bankrupt, I don’t think there should be much choice in keeping some of these things where the folks involved were simply ripping off the community.

Like the auto companies or the airlines, you either renegotiate or the whole company goes under and then, you get paid out cents on the dollar from the pension guarantee corp…

After that happens, maybe individual smaller communities can simply hire their own and start over without these bloated liabilities.

[joec]

[quote=threadkiller]How about a major earthquake in CA! I think most people complain about taxes. but don’t really plan based on them atleast not long term. Otherwise everybody would be cashing out there 401K’s right now. Taxes are going to rise,that’s a given and with no good news economically I would say the odds are the market will be down this time next year.[/quote]

If it’s really long term, I don’t think people will be doing much with their 401k since over 30-40 years, you will have plenty of changes in tax policy to make adjustments as needed.

Taxes are pretty low now, but folks tapping 401k money at their marginal rate isn’t a sure thing.

[joec]

[quote=threadkiller]How about a major earthquake in CA! I think most people complain about taxes. but don’t really plan based on them atleast not long term. Otherwise everybody would be cashing out there 401K’s right now. Taxes are going to rise,that’s a given and with no good news economically I would say the odds are the market will be down this time next year.[/quote]

If it’s really long term, I don’t think people will be doing much with their 401k since over 30-40 years, you will have plenty of changes in tax policy to make adjustments as needed.

Taxes are pretty low now, but folks tapping 401k money at their marginal rate isn’t a sure thing.

[Author]

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