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patientrenter
ParticipantArraya and XBoxBoy make good points.
Look at what China and other CBs do, not what they say. They clearly need to move to fewer dollars, and that will happen.
ParticipantArraya and XBoxBoy make good points.
Look at what China and other CBs do, not what they say. They clearly need to move to fewer dollars, and that will happen.
ParticipantArraya and XBoxBoy make good points.
Look at what China and other CBs do, not what they say. They clearly need to move to fewer dollars, and that will happen.
July 5, 2009 at 3:41 PM in reply to: OT: “Bank of America sets cutoff for redeeming California IOUs” #425556Participant[quote=CA renter]Why not start up a Pigg fund and let Allan head it up? :)[/quote]
That’s funny, that’s exactly what I was thinking when I read this. With Allan picking up loans for us at pennies on the dollar, and SDR buying rental properties, Piggs would be all set. We need to bring a contract and serve ’em lots of beer at the next gathering before they sign on!
July 5, 2009 at 3:41 PM in reply to: OT: “Bank of America sets cutoff for redeeming California IOUs” #425785Participant[quote=CA renter]Why not start up a Pigg fund and let Allan head it up? :)[/quote]
That’s funny, that’s exactly what I was thinking when I read this. With Allan picking up loans for us at pennies on the dollar, and SDR buying rental properties, Piggs would be all set. We need to bring a contract and serve ’em lots of beer at the next gathering before they sign on!
July 5, 2009 at 3:41 PM in reply to: OT: “Bank of America sets cutoff for redeeming California IOUs” #426072Participant[quote=CA renter]Why not start up a Pigg fund and let Allan head it up? :)[/quote]
That’s funny, that’s exactly what I was thinking when I read this. With Allan picking up loans for us at pennies on the dollar, and SDR buying rental properties, Piggs would be all set. We need to bring a contract and serve ’em lots of beer at the next gathering before they sign on!
July 5, 2009 at 3:41 PM in reply to: OT: “Bank of America sets cutoff for redeeming California IOUs” #426141Participant[quote=CA renter]Why not start up a Pigg fund and let Allan head it up? :)[/quote]
That’s funny, that’s exactly what I was thinking when I read this. With Allan picking up loans for us at pennies on the dollar, and SDR buying rental properties, Piggs would be all set. We need to bring a contract and serve ’em lots of beer at the next gathering before they sign on!
July 5, 2009 at 3:41 PM in reply to: OT: “Bank of America sets cutoff for redeeming California IOUs” #426304Participant[quote=CA renter]Why not start up a Pigg fund and let Allan head it up? :)[/quote]
That’s funny, that’s exactly what I was thinking when I read this. With Allan picking up loans for us at pennies on the dollar, and SDR buying rental properties, Piggs would be all set. We need to bring a contract and serve ’em lots of beer at the next gathering before they sign on!
ParticipantIt’s funny how every politician and economist thinks the Fed should maintain some level of inflation, and suppress interest rates, and the Fed effectively does that, but keeps it all just below most people’s radar screen.
Why does this happen? Why isn’t it a goal of the Fed to boost interest rates, and deflate? After all, with a little deflation our savings would be a little more valuable every year without us having to launder our money through the financial system and get clipped every year for the privilege. And with higher interest rates it would be easier to support ourselves in retirement. Aren’t these worthy goals?
By having a little inflation, it forces all savers to pay fees and taxes, even when we are not earning any real return. That keeps millions of people well paid in our banks and mutual funds, and allows more govt spending.
The older I get, the more I find myself subscribing to the theory that our standard economic prescriptions are cynical schemes that use political power to take from one group of people and give to another, with a little economic logic to act as a fig leaf. We are fed doom and gloom about the dangers of deflation, decorated with Great Depression and Japan stories. “Don’t even think about it”. I’d like to think about it, and I am not immediately convinced that true price stability (without long term bias to inflation or deflation) wouldn’t be a lot better for our society in the aggregate, even if it’s much worse for the money management world and spending politicians.
ParticipantIt’s funny how every politician and economist thinks the Fed should maintain some level of inflation, and suppress interest rates, and the Fed effectively does that, but keeps it all just below most people’s radar screen.
Why does this happen? Why isn’t it a goal of the Fed to boost interest rates, and deflate? After all, with a little deflation our savings would be a little more valuable every year without us having to launder our money through the financial system and get clipped every year for the privilege. And with higher interest rates it would be easier to support ourselves in retirement. Aren’t these worthy goals?
By having a little inflation, it forces all savers to pay fees and taxes, even when we are not earning any real return. That keeps millions of people well paid in our banks and mutual funds, and allows more govt spending.
The older I get, the more I find myself subscribing to the theory that our standard economic prescriptions are cynical schemes that use political power to take from one group of people and give to another, with a little economic logic to act as a fig leaf. We are fed doom and gloom about the dangers of deflation, decorated with Great Depression and Japan stories. “Don’t even think about it”. I’d like to think about it, and I am not immediately convinced that true price stability (without long term bias to inflation or deflation) wouldn’t be a lot better for our society in the aggregate, even if it’s much worse for the money management world and spending politicians.
ParticipantIt’s funny how every politician and economist thinks the Fed should maintain some level of inflation, and suppress interest rates, and the Fed effectively does that, but keeps it all just below most people’s radar screen.
Why does this happen? Why isn’t it a goal of the Fed to boost interest rates, and deflate? After all, with a little deflation our savings would be a little more valuable every year without us having to launder our money through the financial system and get clipped every year for the privilege. And with higher interest rates it would be easier to support ourselves in retirement. Aren’t these worthy goals?
By having a little inflation, it forces all savers to pay fees and taxes, even when we are not earning any real return. That keeps millions of people well paid in our banks and mutual funds, and allows more govt spending.
The older I get, the more I find myself subscribing to the theory that our standard economic prescriptions are cynical schemes that use political power to take from one group of people and give to another, with a little economic logic to act as a fig leaf. We are fed doom and gloom about the dangers of deflation, decorated with Great Depression and Japan stories. “Don’t even think about it”. I’d like to think about it, and I am not immediately convinced that true price stability (without long term bias to inflation or deflation) wouldn’t be a lot better for our society in the aggregate, even if it’s much worse for the money management world and spending politicians.
ParticipantIt’s funny how every politician and economist thinks the Fed should maintain some level of inflation, and suppress interest rates, and the Fed effectively does that, but keeps it all just below most people’s radar screen.
Why does this happen? Why isn’t it a goal of the Fed to boost interest rates, and deflate? After all, with a little deflation our savings would be a little more valuable every year without us having to launder our money through the financial system and get clipped every year for the privilege. And with higher interest rates it would be easier to support ourselves in retirement. Aren’t these worthy goals?
By having a little inflation, it forces all savers to pay fees and taxes, even when we are not earning any real return. That keeps millions of people well paid in our banks and mutual funds, and allows more govt spending.
The older I get, the more I find myself subscribing to the theory that our standard economic prescriptions are cynical schemes that use political power to take from one group of people and give to another, with a little economic logic to act as a fig leaf. We are fed doom and gloom about the dangers of deflation, decorated with Great Depression and Japan stories. “Don’t even think about it”. I’d like to think about it, and I am not immediately convinced that true price stability (without long term bias to inflation or deflation) wouldn’t be a lot better for our society in the aggregate, even if it’s much worse for the money management world and spending politicians.
ParticipantIt’s funny how every politician and economist thinks the Fed should maintain some level of inflation, and suppress interest rates, and the Fed effectively does that, but keeps it all just below most people’s radar screen.
Why does this happen? Why isn’t it a goal of the Fed to boost interest rates, and deflate? After all, with a little deflation our savings would be a little more valuable every year without us having to launder our money through the financial system and get clipped every year for the privilege. And with higher interest rates it would be easier to support ourselves in retirement. Aren’t these worthy goals?
By having a little inflation, it forces all savers to pay fees and taxes, even when we are not earning any real return. That keeps millions of people well paid in our banks and mutual funds, and allows more govt spending.
The older I get, the more I find myself subscribing to the theory that our standard economic prescriptions are cynical schemes that use political power to take from one group of people and give to another, with a little economic logic to act as a fig leaf. We are fed doom and gloom about the dangers of deflation, decorated with Great Depression and Japan stories. “Don’t even think about it”. I’d like to think about it, and I am not immediately convinced that true price stability (without long term bias to inflation or deflation) wouldn’t be a lot better for our society in the aggregate, even if it’s much worse for the money management world and spending politicians.
July 5, 2009 at 11:02 AM in reply to: Feng Shui, is it important for you when buying a house? #426040ParticipantNot a bad move, Nancy.
But my bias for 401k alternatives is real assets that produce a steady real income. A home can be rented out. In a world where downpayments are not required (FHA 3% less tax credit) and mortgage rates are held low through government action (FNMA and Fed purchases of MBS etc), and there is no real penalty for walking away when underwater, it will be hard to rent any home that can be easily bought instead. Why would anyone want to rent a single family home that they can buy with little or no commitment and at low monthly cost?
I think we have not yet understood the full long term impact of the Great Bailout. Over the next few years, journalists and financial advisors and individuals will digest what is happening now, and come to realize that buying a home with little or no money down is a huge gift from the federal govt when paired with a plan for ruthless default. People will be buying homes with little or no commitment to paying the purchase price, to an even greater degree than in the last bubble.
Certainly people assigned temporarily to one location would prefer to rent, but the population of people in this situation is steady, and we can’t all make a retirement living by buying more and more homes and renting them to this small slice of our working population.
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