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Old 09-12-2016, 09:42 AM
 
Location: Oregon, formerly Texas
5,242 posts, read 3,393,710 times
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When your economy is 70% dependent on domestic consumer spending, obviously saving does it little good.
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Old 09-12-2016, 09:43 AM
 
721 posts, read 398,145 times
Reputation: 1079
Quote:
Originally Posted by jrkliny View Post
Of course savers are not doing well. The whole idea of low rates is to stimulate investment and buying and borrowing. Borrowing is a great deal. You can borrow at very low rates, enjoy the money or put it to work for you, and then pay it back years or decades later with dollars that are worth much less.
Why would someone who has money, who has capital go and take on more debt? ZIRP works for SPECULATORS AND LOSERS WHO DIDN'T HAVE ANY MONEY. ZIRP works for real estate flippers, shysters, thieves, criminals, con-men and etc. WE HAVE BEEN REWARDING WRONG PEOPLE FOR LAST 8 YEARS.

It looks like TRUMP is the clear choice for a PRESIDENT.
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Old 09-12-2016, 09:50 AM
 
5,598 posts, read 4,204,310 times
Reputation: 10552
Quote:
Originally Posted by C2BP View Post
Why would someone who has money, who has capital go and take on more debt?

.........

Why turn down free money? A good example would be a car loan. Last Fall I went to buy a car with cash. We finished the negotiations and were about to sign the final papers. The dealership gasped when we asked for an even better deal if we paid in cash. The dealership gets money for every loan. Instead of getting money for a cash purchase, we got some accessories thrown in when we agreed to take a loan.


So now we have kept our money and have it invested.

Last edited by jrkliny; 09-12-2016 at 11:09 AM..
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Old 09-12-2016, 10:00 AM
 
721 posts, read 398,145 times
Reputation: 1079
Quote:
Originally Posted by jrkliny View Post
Why turn down free money? A good example would be a car loan. Last Fall I went to buy a car with cash. We finished the negotiations are were about to sign the final papers. The dealership gasped when we asked for an even better deal if we paid in cash. The dealership gets money for every loan. Instead of getting money for a cash purchase, we got some accessories thrown in when we agreed to take a loan.


So now we have kept our money and have it invested.
Free money? No such a thing as a free money. The Fed has created a MONSTER ECONOMY. That car you purchased is probably 40% more expensive as it should be because of this "free money" When rates go up, dollar gets stronger, car prices come down and then you will be paying your loan back in expensive dollars.

Taking loans with low rates or cheap money only works if rates are going to stay low for the entire duration of the loan. Are you sure rates are going to stay low for next 5 years? I don't mean by this your car loan rate. Otherwise you have to pay back your "cheap money loan" with strong and expensive dollars.

The Fed has lured millions of Americans into more debt since 2008. This is criminal at the best.
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Old 09-12-2016, 11:03 AM
 
4,310 posts, read 2,446,977 times
Reputation: 2424
Quote:
Originally Posted by C2BP View Post
Free money? No such a thing as a free money. The Fed has created a MONSTER ECONOMY. That car you purchased is probably 40% more expensive as it should be because of this "free money" When rates go up, dollar gets stronger, car prices come down and then you will be paying your loan back in expensive dollars.

Taking loans with low rates or cheap money only works if rates are going to stay low for the entire duration of the loan. Are you sure rates are going to stay low for next 5 years? I don't mean by this your car loan rate. Otherwise you have to pay back your "cheap money loan" with strong and expensive dollars.

The Fed has lured millions of Americans into more debt since 2008. This is criminal at the best.
You probably don't realize how funny you Doomers sound.
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Old 09-12-2016, 11:15 AM
 
5,598 posts, read 4,204,310 times
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Unbelievable. Now exactly when it is that I am going to be able to buy a car at a much lower price? I bought virtually the same car my daughter bought in 2013 and mine cost $5000 more at the end of model year sales. And when exactly will we move from 2 plus percent inflation to deflation?
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Old 09-12-2016, 12:05 PM
 
721 posts, read 398,145 times
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Look, most of you have no idea what a heck is going on in our country since 2001. Markets are up today, go celebrate, everything is OK, we can just print money, keep interest rates low for the rest of our existence. Everything is cool, just look the other way when you see poor people and more and more homeless Americans.
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Old 09-12-2016, 12:18 PM
 
4,310 posts, read 2,446,977 times
Reputation: 2424
Quote:
Originally Posted by C2BP View Post
Look, most of you have no idea what a heck is going on in our country since 2001. Markets are up today, go celebrate, everything is OK, we can just print money, keep interest rates low for the rest of our existence. Everything is cool, just look the other way when you see poor people and more and more homeless Americans.
I secretly hope your deflationary doom and gloom happens. I'd love cheap Bay Area
Houses.
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Old 09-12-2016, 12:21 PM
 
5,598 posts, read 4,204,310 times
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What the heck is going on? Like a greatly improved job market since 2008. Like wages starting to increase a bit more than the rate of inflation. Like more people than ever living in households with 6 figure incomes. Like a resurgence in housing and car sales after a long slump. Like a really strong job market for those with professional or trade school skills. Like businesses and banks flush with cash ready to invest when the global economy slowly turns the corner. Like the 11% decline in homeless rates over the past 10 years despite the tough economic times and growth in single parent households.
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Old 09-12-2016, 12:34 PM
 
721 posts, read 398,145 times
Reputation: 1079
Quote:
Originally Posted by jrkliny View Post
What the heck is going on? Like a greatly improved job market since 2008. Like wages starting to increase a bit more than the rate of inflation. Like more people than ever living in households with 6 figure incomes. Like a resurgence in housing and car sales after a long slump. Like a really strong job market for those with professional or trade school skills. Like businesses and banks flush with cash ready to invest when the global economy slowly turns the corner. Like the 11% decline in homeless rates over the past 10 years despite the tough economic times and growth in single parent households.
OMG, you are living on a fantasy island.

Last edited by C2BP; 09-12-2016 at 12:45 PM..
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