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Old 12-24-2019, 03:00 PM
 
4,631 posts, read 4,791,588 times
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We only avoided a recession by blowing up a huge "everything bubble". We will eventually pay the piper and deservedly so.
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Old 12-24-2019, 03:24 PM
 
9,608 posts, read 4,218,026 times
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Originally Posted by pittsflyer View Post
But it does matter, it drives behavior to debt rather than bank rolling the buisness through accumulated interest on savings. That’s a HUGE difference.

One means bankruptcy with you msny bad months the other means less vacations etc.
It does tend to. It also encourages consumption and growth.

Modern sovereign economies are using the power of their fiat more. IMO there is enough slack here to provide more for the people without necessarily creating more inflation. Or onerous inflation. i.e. more new central moneys for infrastructure, education, HC.

I'd much rather be living under a low interest and inflation environment vs high, and I'm old enough to have done both.
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Old 12-24-2019, 03:29 PM
 
9,608 posts, read 4,218,026 times
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Originally Posted by HJ99 View Post
Newsflash, the decade ends with 2020, not 2019! This decade is 2011 thru 2020. For the mathematically challenged, there was no year "zero". So year 1 thru 10 is the first decade, etc, etc, etc....
OK. But the '20' is a 'new' round number to start with.
We will soon be in the 20's decade for all of us uninformed.
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Old 12-24-2019, 03:40 PM
 
7,657 posts, read 3,371,018 times
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Originally Posted by Hoonose View Post
It does tend to. It also encourages consumption and growth.

Modern sovereign economies are using the power of their fiat more. IMO there is enough slack here to provide more for the people without necessarily creating more inflation. Or onerous inflation. i.e. more new central moneys for infrastructure, education, HC.

I'd much rather be living under a low interest and inflation environment vs high, and I'm old enough to have done both.
Depends on how you do buisness. Depends on how disaplined you are at saving money.

People with high levels of liquidity want high interest rates so they can use the interest earnings to bank roll the buisness without a bank breathing down their neck.
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Old 12-24-2019, 03:41 PM
 
Location: Orange County, CA
2,279 posts, read 2,058,688 times
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Originally Posted by tickyul View Post
Is this fueling a super-correction......or does this speak to a new-normal, government using any and all means to stop any significant and sustained financial-correction????
They no longer speak of recessions or even the possibility of one unless it comes unexpected, like the 2006-2007 financial crisis.

The Powers that Be are pretty much determined to spend TRILLIONS every year to keep the party going. Which is normally seen in times of WAR...
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Old 12-24-2019, 03:50 PM
 
1,998 posts, read 491,997 times
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Originally Posted by Lycanmaster View Post
They no longer speak of recessions or even the possibility of one unless it comes unexpected, like the 2006-2007 financial crisis.

The Powers that Be are pretty much determined to spend TRILLIONS every year to keep the party going. Which is normally seen in times of WAR...

Janet Yellen - I don't believe the next financial crisis will be "in our lifetimes." LOL. As the Fed dumps around $100 billion DAILY now to stem the run on the repo markets as liquidity dries up......And don't forget the renewed $60 billion per month in treasury purchases on top of that.
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Old 12-24-2019, 03:55 PM
 
9,608 posts, read 4,218,026 times
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Originally Posted by pittsflyer View Post
Depends on how you do buisness. Depends on how disaplined you are at saving money.

People with high levels of liquidity want high interest rates so they can use the interest earnings to bank roll the buisness without a bank breathing down their neck.
I rather like borrowing at low rates.

I built a home at 14% in 1980. (I could have walked away 14% or higher)Soon converted to an ARM, and rates only went down from there.
I built a home in 1984 at 10%, starting with an ARM. And rates only went down from there. 0 now, paid off.
My kids listened to me, waited after the 2008 crash, and then bought at the interest rate nadir some years back. Cheapest house on an expensive Hollywood Hills block. Their asset has inflated quite nicely.

I don't know anyone pushing for, hoping for, or taking a liking to higher interest rates. Except maybe lenders.

In the early '80's I was getting 19% on some second deeds of trust, 13% in the MM. But inflation was so high at the time, those great returns were an illusion.
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Old 12-24-2019, 04:07 PM
 
437 posts, read 65,616 times
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Originally Posted by Hoonose View Post
OK. But the '20' is a 'new' round number to start with.
We will soon be in the 20's decade for all of us uninformed.

So which was the "leap decade" where we gained a year? Or do you claim there was a year "zero"??????
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Old 12-24-2019, 04:16 PM
 
437 posts, read 65,616 times
Reputation: 578
Quote:
Originally Posted by Hoonose View Post
I rather like borrowing at low rates.

I built a home at 14% in 1980. (I could have walked away 14% or higher)Soon converted to an ARM, and rates only went down from there.
I built a home in 1984 at 10%, starting with an ARM. And rates only went down from there. 0 now, paid off.
My kids listened to me, waited after the 2008 crash, and then bought at the interest rate nadir some years back. Cheapest house on an expensive Hollywood Hills block. Their asset has inflated quite nicely.

I don't know anyone pushing for, hoping for, or taking a liking to higher interest rates. Except maybe lenders.

In the early '80's I was getting 19% on some second deeds of trust, 13% in the MM. But inflation was so high at the time, those great returns were an illusion.

I think going interest rate of 30% on all loans be about right. Get out of this debt based economy silliness. You want some consumer item, you save up and pay cash on the barrelhead. Right now our economy is based on selling ever more stuff to ever more people on the easy payment plan. Trouble is you eventually run out of people that arent up to their eyeballs in debt. Loans have a place, but not as the basis of an economy.



Either that or you disallow any discharge of debt, much like current student debt. Hold those speculators' feet to the fire for their lifetime. Gamble with borrowed money at your own peril. Cause you cant just write it off. Put em in debtors' prison. ARe there no prisons, are there no workhouses? Our current president would be in debtors' prison right now.
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Old 12-24-2019, 04:44 PM
 
9,608 posts, read 4,218,026 times
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Originally Posted by HJ99 View Post
So which was the "leap decade" where we gained a year? Or do you claim there was a year "zero"??????
Many people are not very concerned with such detail/exactness, and like to deal in iconic round numbers. In the future they will talk of the 20's decade, 1/1/2020-12/31/2029. As inexact as you say that is.
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