[jonnycsd]

Government’s role in the USA is income redistribution. This creates massive disincintives to work hard and save and a huge incentive to sign up to be on the receiving end of the redistribution gravy train.

Layer in massive immigration based on a lottery system rather than the merrits of the applicant, plus even larger inflows of illegal immigrants who have no interest in joining the melting pot (yet who are eligible for a full range of government services).

On top of that weigh in the fact that the public school system is in a state of total dysfunction and is unable to prepare children (imigrant or native born) for the reality of global labor competition.

And a political / social climate that puts ideology ahead of objective thinking – resulting in ebonics, creation science, bans on stem cell research, racial quotas, gender quotas, pointless wars, Nifong, bloated prison populations, ethanol fuel, 60% divorce rates, etc, etc. etc.

Add to all that the reality that wealth concentration is accellerating.

Fast forward the trend lines a few decades and you have BRAZIL. In 2050 the USA will look like Brazil in its demographc and economic composition. The middle class is already dead.

[jonnycsd]

I agree in principle but do not think it will reach hyper-inflation levels. That said, 5% to 6% per year inflation compounded for 5 years would take a huge chunk out of the mortgage!!

Also, the strategy only holds if you want to buy and hold for ten years or more. The high rates we both expect will depress valuations in the intermediate term.

[jonnycsd]

I agree in principle but do not think it will reach hyper-inflation levels. That said, 5% to 6% per year inflation compounded for 5 years would take a huge chunk out of the mortgage!!

Also, the strategy only holds if you want to buy and hold for ten years or more. The high rates we both expect will depress valuations in the intermediate term.

[jonnycsd]

I agree in principle but do not think it will reach hyper-inflation levels. That said, 5% to 6% per year inflation compounded for 5 years would take a huge chunk out of the mortgage!!

Also, the strategy only holds if you want to buy and hold for ten years or more. The high rates we both expect will depress valuations in the intermediate term.

[jonnycsd]

I agree in principle but do not think it will reach hyper-inflation levels. That said, 5% to 6% per year inflation compounded for 5 years would take a huge chunk out of the mortgage!!

Also, the strategy only holds if you want to buy and hold for ten years or more. The high rates we both expect will depress valuations in the intermediate term.

[jonnycsd]

I agree in principle but do not think it will reach hyper-inflation levels. That said, 5% to 6% per year inflation compounded for 5 years would take a huge chunk out of the mortgage!!

Also, the strategy only holds if you want to buy and hold for ten years or more. The high rates we both expect will depress valuations in the intermediate term.

[jonnycsd]

Yes, the assumptions in the original post are off quite a bit. Especially if you have Head of Household filing status with several kids. Also, many households will have either double incomes or large downpayments.

The vast majority of families who live in $1MM homes / CV / Del Mar or any where else either have two incomes or one income that actually tops $200K. Remember, these areas are only a TINY fraction of homes in San Diego, and all the doctors, lawyers, consultants, business owners and executives do have to live somewhere. (Mortgage brokers don’t make the list any more). Also, dont forget about the people who have been working (and saving) for 30 years – even if they dont make $200K a year, if they bring a $400K downpayment it changes the math quite a bit.

[jonnycsd]

Yes, the assumptions in the original post are off quite a bit. Especially if you have Head of Household filing status with several kids. Also, many households will have either double incomes or large downpayments.

The vast majority of families who live in $1MM homes / CV / Del Mar or any where else either have two incomes or one income that actually tops $200K. Remember, these areas are only a TINY fraction of homes in San Diego, and all the doctors, lawyers, consultants, business owners and executives do have to live somewhere. (Mortgage brokers don’t make the list any more). Also, dont forget about the people who have been working (and saving) for 30 years – even if they dont make $200K a year, if they bring a $400K downpayment it changes the math quite a bit.

[jonnycsd]

Yes, the assumptions in the original post are off quite a bit. Especially if you have Head of Household filing status with several kids. Also, many households will have either double incomes or large downpayments.

The vast majority of families who live in $1MM homes / CV / Del Mar or any where else either have two incomes or one income that actually tops $200K. Remember, these areas are only a TINY fraction of homes in San Diego, and all the doctors, lawyers, consultants, business owners and executives do have to live somewhere. (Mortgage brokers don’t make the list any more). Also, dont forget about the people who have been working (and saving) for 30 years – even if they dont make $200K a year, if they bring a $400K downpayment it changes the math quite a bit.

[jonnycsd]

Yes, the assumptions in the original post are off quite a bit. Especially if you have Head of Household filing status with several kids. Also, many households will have either double incomes or large downpayments.

The vast majority of families who live in $1MM homes / CV / Del Mar or any where else either have two incomes or one income that actually tops $200K. Remember, these areas are only a TINY fraction of homes in San Diego, and all the doctors, lawyers, consultants, business owners and executives do have to live somewhere. (Mortgage brokers don’t make the list any more). Also, dont forget about the people who have been working (and saving) for 30 years – even if they dont make $200K a year, if they bring a $400K downpayment it changes the math quite a bit.

[jonnycsd]

Yes, the assumptions in the original post are off quite a bit. Especially if you have Head of Household filing status with several kids. Also, many households will have either double incomes or large downpayments.

The vast majority of families who live in $1MM homes / CV / Del Mar or any where else either have two incomes or one income that actually tops $200K. Remember, these areas are only a TINY fraction of homes in San Diego, and all the doctors, lawyers, consultants, business owners and executives do have to live somewhere. (Mortgage brokers don’t make the list any more). Also, dont forget about the people who have been working (and saving) for 30 years – even if they dont make $200K a year, if they bring a $400K downpayment it changes the math quite a bit.

[jonnycsd]

By the way, I ENTIRELY agree with Nostradamus’ leading response. Spot on.

[jonnycsd]

By the way, I ENTIRELY agree with Nostradamus’ leading response. Spot on.

[jonnycsd]

By the way, I ENTIRELY agree with Nostradamus’ leading response. Spot on.

[jonnycsd]

By the way, I ENTIRELY agree with Nostradamus’ leading response. Spot on.

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