[KIBU]

Another 20 years will do.

[KIBU]

Another 20 years will do.

[KIBU]

Strange, this poor guy Lewman was talking to himself.

Some have suggested protecting money by convert to foreign currency.

Would you do that???

[KIBU]

Strange, this poor guy Lewman was talking to himself.

Some have suggested protecting money by convert to foreign currency.

Would you do that???

[KIBU]

Look like a few got really high income, in the 300,000s. My question is if for example one doesn’t have a business (some here probably must have a bussiness to reach that high income) and you make 200,000, 300,000, would one lose a big chunk of money to SIR IRS ? Waiting on the sideline therefore would be at a big cost (but maybe smaller cost than buying at peak), wouldn’t it???

Any one know the approximate cut off point for a huge income like two to three hundred thousands that would make sense to buy rather than wait???

[KIBU]

Look like a few got really high income, in the 300,000s. My question is if for example one doesn’t have a business (some here probably must have a bussiness to reach that high income) and you make 200,000, 300,000, would one lose a big chunk of money to SIR IRS ? Waiting on the sideline therefore would be at a big cost (but maybe smaller cost than buying at peak), wouldn’t it???

Any one know the approximate cut off point for a huge income like two to three hundred thousands that would make sense to buy rather than wait???

[KIBU]

Gee, no body even laughed at my joke. Maybe they even believed that I had 3 wives for real or more likely nobody cares.

Anyway, I need to clarify for my own sake since I am going to post more posts here to ask you a lot more questions…. Here is my real me: I have only 1 wife, I am 30 years old. I also calculated that until I am 65 years old, all we could afford is complete payment of a house (hasn’t bought yet).

[KIBU]

Gee, no body even laughed at my joke. Maybe they even believed that I had 3 wives for real or more likely nobody cares.

Anyway, I need to clarify for my own sake since I am going to post more posts here to ask you a lot more questions…. Here is my real me: I have only 1 wife, I am 30 years old. I also calculated that until I am 65 years old, all we could afford is complete payment of a house (hasn’t bought yet).

[KIBU]

Me, 4 kids, 3 wives (divorced, married, divorced, maried, divorced, married), 2 step kids, 2 grandsons.

Each kid is supporting me with money that I will save for a sizable down payment.

I am a USC graduate too. Go Trojan!!!

[KIBU]

Me, 4 kids, 3 wives (divorced, married, divorced, maried, divorced, married), 2 step kids, 2 grandsons.

Each kid is supporting me with money that I will save for a sizable down payment.

I am a USC graduate too. Go Trojan!!!

[KIBU]

Hi JWM,

They will try to protect the dollar as much as possible but I am affraid, they will try to avoid more a recession/depression that can come through by a massive housing crash. With a recession, the economy will lose many things as in high inflation. The main difference is: with rate increase, we know for sure the housing market is going to be hammered even harder, increasing significant stress on the economy. With delays in rate increase, inflation will increase, there is a higher risk that investments go away, but this risk is manageable. That is, there is some rooms with inflation for the fed to play before any possible catastrophy such as suggested.

To mention the losing of currency status, specifically oil denominated in US dollar status is pretty far fetched. That would involve both strong economic and political factors which I think can only remotely happen. If you are concerned about this one, the US certainly still have lots of room before the risk of this could be any serious threat.

[KIBU]

Hi JWM,

They will try to protect the dollar as much as possible but I am affraid, they will try to avoid more a recession/depression that can come through by a massive housing crash. With a recession, the economy will lose many things as in high inflation. The main difference is: with rate increase, we know for sure the housing market is going to be hammered even harder, increasing significant stress on the economy. With delays in rate increase, inflation will increase, there is a higher risk that investments go away, but this risk is manageable. That is, there is some rooms with inflation for the fed to play before any possible catastrophy such as suggested.

To mention the losing of currency status, specifically oil denominated in US dollar status is pretty far fetched. That would involve both strong economic and political factors which I think can only remotely happen. If you are concerned about this one, the US certainly still have lots of room before the risk of this could be any serious threat.

[KIBU]

Thanks for all your very thoughtful comments. I really respect this website and the friendly and very knowlegeable posts here. I learn a lot.

There are a few assumptions that I wish to address.

Assumption #1: if inflation rise, the fed will raise rate.

When inflation rises, there is an increased risk that at a certain critical point foreign investors/governments will turn away from the US economy/treasury at a significant cost to themselves as well although lower. This would cause havoc for the US dollar and economy.

However, if interest rate increases further, one sure thing will happen is the further collapse of the housing market. The risk of this leading to a recession is very high.

In the face of a problematic housing market, what the fed will try to do is to delay increasing rate as long as possible to sail through the housing market problem with the least harm to the economy. This manuever will be at the expense of increasing inflation by not raising interest rate properly.

I believe they do this because they believe the US has room to manuever. That is, to allow increased inflation without comming too close to the critical point triggering outflow of investments. As the world balance between the risk and many benefits of their US investments (which they have been dependent on for a long time), the Fed will play their balancing act.

But it is you and me who will suffer as our cash value will evaporate. Holding no physical assets, only cash or some stock investments like me is no hedge against high inflation.

I hope I will continue later!

[KIBU]

Thanks for all your very thoughtful comments. I really respect this website and the friendly and very knowlegeable posts here. I learn a lot.

There are a few assumptions that I wish to address.

Assumption #1: if inflation rise, the fed will raise rate.

When inflation rises, there is an increased risk that at a certain critical point foreign investors/governments will turn away from the US economy/treasury at a significant cost to themselves as well although lower. This would cause havoc for the US dollar and economy.

However, if interest rate increases further, one sure thing will happen is the further collapse of the housing market. The risk of this leading to a recession is very high.

In the face of a problematic housing market, what the fed will try to do is to delay increasing rate as long as possible to sail through the housing market problem with the least harm to the economy. This manuever will be at the expense of increasing inflation by not raising interest rate properly.

I believe they do this because they believe the US has room to manuever. That is, to allow increased inflation without comming too close to the critical point triggering outflow of investments. As the world balance between the risk and many benefits of their US investments (which they have been dependent on for a long time), the Fed will play their balancing act.

But it is you and me who will suffer as our cash value will evaporate. Holding no physical assets, only cash or some stock investments like me is no hedge against high inflation.

I hope I will continue later!

[Author]

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