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Old 11-07-2019, 06:13 AM
 
Location: The Triad (NC)
29,704 posts, read 64,661,043 times
Reputation: 34604

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Quote:
Originally Posted by RationalExpectations View Post
To say we have too much debt is the same thing as saying we save too much.
This would imply that all debt is equal.
Even you know better than that.
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Old 11-07-2019, 12:33 PM
 
4,803 posts, read 1,264,655 times
Reputation: 5688
Quote:
Originally Posted by NJ Brazen_3133 View Post
The loan becomes asset of the bank that buys the old banks, and the home builders pays the new bank, terms stay the same.

That is my guess.
Oh, why isn't the loan just forgiven if the old bank ceases to exist!

Took out a mortgage with SunTrust, was sold to Chase before I got the chance to make my first payment. Later was sold to PennyMac before the 2y mark.
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Old 11-07-2019, 12:34 PM
 
4,803 posts, read 1,264,655 times
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Quote:
Originally Posted by MrRational View Post
This would imply that all debt is equal.
Even you know better than that.
Nor are all savings equal. Different investments yield different returns, much like different types of debt have wildly different interest rates. I can't think of a single financial blog that didn't recommend paying off your home dead last when tackling debt. (Unless of course you bought your house on a credit card...)
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Old 11-07-2019, 12:45 PM
 
9,609 posts, read 4,219,703 times
Reputation: 1870
Quote:
Originally Posted by ddm2k View Post
Nor are all savings equal. Different investments yield different returns, much like different types of debt have wildly different interest rates. I can't think of a single financial blog that didn't recommend paying off your home dead last when tackling debt. (Unless of course you bought your house on a credit card...)
Or with a very high mortgage interest rate.
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Old 11-07-2019, 12:52 PM
 
4,803 posts, read 1,264,655 times
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Quote:
Originally Posted by Hoonose View Post
Or with a very high mortgage interest rate.
1983, anyone?
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Old 11-07-2019, 01:11 PM
 
3,658 posts, read 1,009,264 times
Reputation: 6386
Quote:
Originally Posted by MrRational View Post
This would imply that all debt is equal.
Nope.


Quote:
Originally Posted by MrRational View Post
Even you know better than that.
???
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Old 11-07-2019, 03:39 PM
 
8,750 posts, read 5,454,294 times
Reputation: 14804
I take this doomsday talk as a contrarian indicator. If Forums were lighting up with untrammeled optimism extolling a “new normal” of limitless riches, then that would be a time for wariness. Recall for example 1999. Today, and in recent years overall, we’ve heard an overwhelming drumbeat of pessimism. Money’s rotten, and the moneychangers are even more rotten. OK. So what then?

Personally, I worry neither about globalization nor robots nor the Federal Reserve, but of a multi-generational slowdown, of a “loss of mojo”. We don’t innovate like we formerly did. We don’t undertake bold, speculative ventures. I see attenuated growth, a slowdown in productivity growth rate. I see historians in the year 2100 or 2150 regarding the 20th century as the Age of Innovation, just as today we regard the 18th century as the Age of Enlightenment.

Quote:
Originally Posted by Northern Maine Land Man View Post
...I recently sold a home to a 92 year old lady. The bank took a 30 year mortgage on the home. Why would a bank do that?
Why not? If the loan-to-value ratio is reasonable, who cares if the borrower dies next Tuesday?

Quote:
Originally Posted by Northern Maine Land Man View Post
Buy the five G's: gold, grub, guns, gas and ground.
That's a pithy epigram, but does it hold? Gold is favored by some, as a leavening of a balanced investment portfolio. But look at its long-term history. Grub? Hard to store, even with the best refrigeration. Guns? What if you're a lousy shot? Gas? No help in an economy of Teslas. And ground? Surely you yourself have witnessed, how in many parts of the country, land is substantially cheaper than it was 20 years ago.
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Old 11-07-2019, 07:00 PM
 
Location: Northern Maine
9,936 posts, read 15,344,182 times
Reputation: 9972
Gold is the currency of kings.
Silver is the currency of gentlemen.
Barter is the currency of serfs.
Debt is the currency of slaves.

I have no idea who first wrote this maxim, but it is true.
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Old 11-07-2019, 07:15 PM
 
9,609 posts, read 4,219,703 times
Reputation: 1870
Quote:
Originally Posted by Northern Maine Land Man View Post
Gold is the currency of kings.
Silver is the currency of gentlemen.
Barter is the currency of serfs.
Debt is the currency of slaves.

I have no idea who first wrote this maxim, but it is true.
Was true. No longer since most money is fiat/electronic.

Gold and silver are commodities/investments. Even base metal coins are losing their utility.

Barter is still true with black markets and all our under the table commerce.

Debt exists throughout now. It might burden the lower classes more, And it might enrich the uppers.
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Old 11-07-2019, 07:25 PM
 
9,002 posts, read 9,640,938 times
Reputation: 7631
Quote:
Originally Posted by Northern Maine Land Man View Post
Gold is the currency of kings.
Silver is the currency of gentlemen.
Barter is the currency of serfs.
Debt is the currency of slaves.

I have no idea who first wrote this maxim, but it is true.
I don't agree.

For example one of my son's friends leveraged his way through medical school. It's a long story but he'll finish his ER residency this next summer and then begin a job doing locum tenens work around Texas. His salary will be such that he will be able pay his debt to zero within about 6 or 8 months if he'd like.

I'll grant that debt is a problem for many. Much like life saving medicine the right amount really helps too much is a big problem.
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