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so what about I bonds? Inflation bonds? Good idea? Thanks by the way, your a smart dude! I am one of these people who lets Daddy handle the money but I am trying to learn.
stay away from bonds. The bond market is a mess. The US government pays off it's bonds by issuing new bonds. They pay the exiting investors with incoming investors. This is the exact same business model that was run by Bernard Madoff in his ponzi scheme. At some point in the near future, demand for bonds will cease to exist and the scheme will collapse. At that point, the only way to pay off the trillions of dollars in bonds will be to print the money, which will effectively make the bonds worthless because your bonds won't buy you anything.
As for "inflation protected" bonds, it's no different. The government calculates the rate of inflation for you and pays you what they feel. They seriously underreport the rate of inflation to put one over on you. They were claiming in inflation was 3% a year while oil and food prices tripled.
There is no way to protect yourself from inflation by investing in paper assets. The only thing you can do is buy real assets. Gold, Silver, Commodities, and Oil. Normally, real estate would be a good hedge as well but because the prices of real estate far outpaced inflation the past 8 years, real estate will fall even in the face of inflation everywhere else. If you get a big enough decrease in housing, then it will be a great hedge against inflation.
1. State employees are being used to run this program, it costs taxpayer dollars.
2. The loan modifications they speak of are being subsidized by the federal government's housing recovery act bills and TARP funding, which is money being created out of thin air (read, inflation).
Those employees get paid whether or not they are working on this or something else... nothing more..nothing less?
And it's a program that allows the homeowner to negotiate with their existing mortgage company... where is the "funding"?
Just take down the number... you never know - you just might need it one day soon.
Those employees get paid whether or not they are working on this or something else... nothing more..nothing less?
And it's a program that allows the homeowner to negotiate with their existing mortgage company... where is the "funding"?
Just take down the number... you never know - you just might need it one day soon.
The New Jersey state government is running huge deficits. They are in the hole for over 30 billion. Those state employees shouldn't have the jobs they do. They need to get productive jobs rather than leech off the state and raise everyone's property taxes some more. The fact all the state employees aren't being fired is one of the primary reasons for foreclosures occurring because people can't afford these sky high property taxes (the highest in the nation). It's really hard convincing someone that their job is useless when the existence of their job is predicated upon them not understanding why it's useless.
the only reason the existing mortgage company is not out of business and bankrupt is because of the 700 billion dollar bailout. They are able to do the loan modifications because they government gave all these companies billions of dollars. That 700 billion was created out of thin air. It robs each and every American who holds dollars and it's an invisible tax on their wages.
I don't need the number. I don't own a home.
The government created this whole mess. And you want them to solve it with more government spending. It's not going to work. It never does.
stay away from bonds. The bond market is a mess. The US government pays off it's bonds by issuing new bonds. They pay the exiting investors with incoming investors. This is the exact same business model that was run by Bernard Madoff in his ponzi scheme. At some point in the near future, demand for bonds will cease to exist and the scheme will collapse. At that point, the only way to pay off the trillions of dollars in bonds will be to print the money, which will effectively make the bonds worthless because your bonds won't buy you anything.
As for "inflation protected" bonds, it's no different. The government calculates the rate of inflation for you and pays you what they feel. They seriously underreport the rate of inflation to put one over on you. They were claiming in inflation was 3% a year while oil and food prices tripled.
There is no way to protect yourself from inflation by investing in paper assets. The only thing you can do is buy real assets. Gold, Silver, Commodities, and Oil. Normally, real estate would be a good hedge as well but because the prices of real estate far outpaced inflation the past 8 years, real estate will fall even in the face of inflation everywhere else. If you get a big enough decrease in housing, then it will be a great hedge against inflation.
thanks, I have a cabin in the adk's that the renters are full time and paying the rent for at least 2 years, its almost paid off. I own my house flat out in NJ. So I will look into your ideas, thanks for taking the time to explain some things. Its appreciated and the more I am learning on how to handle my money the more confused I get. I still am learning why I am paying these damn estimated taxes. I never really understood that darn concept just paid it. I just today sent out the last federal and nj state estimated for 2008. This whole money thing is kind of confusing, but I am trying to learn and pick up some things. I was a spoiled kid and just let my dad handle it all. Its quite a big some of money however, I need to start learning some things because he is getting old and I basically just was happy to let him handle it. Now its learn time and scary as hell to me. Thanks again. Marilyn
thanks, I have a cabin in the adk's that the renters are full time and paying the rent for at least 2 years, its almost paid off. I own my house flat out in NJ. So I will look into your ideas, thanks for taking the time to explain some things. Its appreciated and the more I am learning on how to handle my money the more confused I get. I still am learning why I am paying these damn estimated taxes. I never really understood that darn concept just paid it. I just today sent out the last federal and nj state estimated for 2008. This whole money thing is kind of confusing, but I am trying to learn and pick up some things. I was a spoiled kid and just let my dad handle it all. Its quite a big some of money however, I need to start learning some things because he is getting old and I basically just was happy to let him handle it. Now its learn time and scary as hell to me. Thanks again. Marilyn
well, back in the day, your dollar was backed by gold and silver. Your dimes, quarters, and half dollars (pre 1965) were actually silver coins. You can sell those old dimes for about 10 times their face value right now. Your money used to be almost inflation proof. You could store it in a mattress and you'd be fine. It's not inflation proof anymore. When the government creates inflation at at rate of 2-3% a year, it's no big deal. When they jack up the money supply over 100%, which is what they are doing, it is a big deal. It will cause the worst inflation this country has seen in over 200 years. Owning gold and silver is simply owning the real money that your grandparents used to use. Right now, our coins are made of copper and zinc. The fall of the Roman Empire was preceded by their coins going from 99% silver down to 2% silver. Our money is at 0% silver and our pennies are at about 2% copper. These are the movements that precedes and ultimate currency collapses that happened numerous times in World History (China, Weimer Republic Germany, 18th Century France, 20th Century Argentina, 1980s Mexico, Present Day Zimbabwe). The US has already witnessed 2 currency collapses. Our first currency, "The Continental" was officially deemed worthless in about 10 years after our independence because it was easily counterfeited. The South's confederate note currency collapsed to a value of zero during the civil war, which is why they lost. These are the reasons that Thomas Jefferson and Andrew Jackson made sure it was in the constitution that only Gold and Silver are legal tender. By having gold and silver as legal tender, the only way for the government to get your money is to raise taxes. Since we abonded the gold standard in 1971, the US government has been free to print money. Every time they need it, they don't raise taxes, they just print it. That's why a gallon of gas isn't 25 cents anymore. That's why it's not a dollar anymore. We've given them the authority to counterfeit our money. The general public ignores the fact that they are in direct violation of the US constitution, the very doctrine that the politicians swear to uphold.
Not only are these foreclosure aid programs (government funded) immoral, they are unconstitutional. You are robbing Peter to pay Paul. If loan mods were left between the lender and the borrower, then there is no problem. But when the lender recieves billions of newly printed dollars so they can do loan modifications, there is a problem. We are simply redistributing wealth from one group to another. Anyone for these types of programs simply does not realize that we are hurting other Americans in the process or simply doesn't care.
People who would accuse me of being selfish for not supporting such a program simply don't understand my view. I'm against it for moral reasons. I'm against it because it's illegal according to the doctrine that our country was founded upon. And I'm against it because it will end up hurting every American in the process. The road to hell is paved with good intentions.
well, back in the day, your dollar was backed by gold and silver. Your dimes, quarters, and half dollars (pre 1965) were actually silver coins. You can sell those old dimes for about 10 times their face value right now. Your money used to be almost inflation proof. You could store it in a mattress and you'd be fine. It's not inflation proof anymore. When the government creates inflation at at rate of 2-3% a year, it's no big deal. When they jack up the money supply over 100%, which is what they are doing, it is a big deal. It will cause the worst inflation this country has seen in over 200 years. Owning gold and silver is simply owning the real money that your grandparents used to use. Right now, our coins are made of copper and zinc. The fall of the Roman Empire was preceded by their coins going from 99% silver down to 2% silver. Our money is at 0% silver and our pennies are at about 2% copper. These are the movements that precedes and ultimate currency collapses that happened numerous times in World History (China, Weimer Republic Germany, 18th Century France, 20th Century Argentina, 1980s Mexico, Present Day Zimbabwe). The US has already witnessed 2 currency collapses. Our first currency, "The Continental" was officially deemed worthless in about 10 years after our independence because it was easily counterfeited. The South's confederate note currency collapsed to a value of zero during the civil war, which is why they lost. These are the reasons that Thomas Jefferson and Andrew Jackson made sure it was in the constitution that only Gold and Silver are legal tender. By having gold and silver as legal tender, the only way for the government to get your money is to raise taxes. Since we abonded the gold standard in 1971, the US government has been free to print money. Every time they need it, they don't raise taxes, they just print it. That's why a gallon of gas isn't 25 cents anymore. That's why it's not a dollar anymore. We've given them the authority to counterfeit our money. The general public ignores the fact that they are in direct violation of the US constitution, the very doctrine that the politicians swear to uphold.
Not only are these foreclosure aid programs (government funded) immoral, they are unconstitutional. You are robbing Peter to pay Paul. If loan mods were left between the lender and the borrower, then there is no problem. But when the lender recieves billions of newly printed dollars so they can do loan modifications, there is a problem. We are simply redistributing wealth from one group to another. Anyone for these types of programs simply does not realize that we are hurting other Americans in the process or simply doesn't care.
People who would accuse me of being selfish for not supporting such a program simply don't understand my view. I'm against it for moral reasons. I'm against it because it's illegal according to the doctrine that our country was founded upon. And I'm against it because it will end up hurting every American in the process. The road to hell is paved with good intentions.
no, I do get these programs are really not that good. They will have to get the money somewhere and like you said or someone said its going to be wealth distribution as I see it. In otherwords hit up the rich again. Thus this to me backfires because I am not going to spend my money if they keep taking it. So no furniture, cars, shopping just basic needs. Thus ever rich person who they tax more will just stop pumping the system.
I am not for these programs either. Thanks again I am going to get some basic investment books and money books and start reading alittle. Hey, I dont need to be all knowing right now, but every day if I learn a few things I may just get it!!
no, I do get these programs are really not that good. They will have to get the money somewhere and like you said or someone said its going to be wealth distribution as I see it. In otherwords hit up the rich again. Thus this to me backfires because I am not going to spend my money if they keep taking it. So no furniture, cars, shopping just basic needs. Thus ever rich person who they tax more will just stop pumping the system.
I am not for these programs either. Thanks again I am going to get some basic investment books and money books and start reading alittle. Hey, I dont need to be all knowing right now, but every day if I learn a few things I may just get it!!
the problem is, they aren't taxing the rich. In fact, they've given the rich people even more money to play with with these bailouts. All these bailouts go directly to the rich. Even if they bailout people behind on their payments, those payments go to rich bankers, ultimately. Their current actions don't tax the rich at all. They tax people who have money saved in US dollars and they tax people who earn their wages in dollars (read every American). This hurts the middle class. A millionaire doesn't care if he has to pay $1.50 at the pump or if he has to pay $10 at the pump. For your average American, confiscating his wealth through inflation will undoubtedly ruin our standard of living. That's what these bailouts do.
the problem is, they aren't taxing the rich. In fact, they've given the rich people even more money to play with with these bailouts. All these bailouts go directly to the rich. Even if they bailout people behind on their payments, those payments go to rich bankers, ultimately. Their current actions don't tax the rich at all. They tax people who have money saved in US dollars and they tax people who earn their wages in dollars (read every American). This hurts the middle class. A millionaire doesn't care if he has to pay $1.50 at the pump or if he has to pay $10 at the pump. For your average American, confiscating his wealth through inflation will undoubtedly ruin our standard of living. That's what these bailouts do.
excellent point, sort of like the Jimmy Carter years, right with high inflation? Your hired!!!!!! I really enjoy your line of thinking, absorbing it all in my head.
The New Jersey state government is running huge deficits. They are in the hole for over 30 billion. Those state employees shouldn't have the jobs they do. They need to get productive jobs rather than leech off the state and raise everyone's property taxes some more. The fact all the state employees aren't being fired is one of the primary reasons for foreclosures occurring because people can't afford these sky high property taxes (the highest in the nation). It's really hard convincing someone that their job is useless when the existence of their job is predicated upon them not understanding why it's useless.
the only reason the existing mortgage company is not out of business and bankrupt is because of the 700 billion dollar bailout. They are able to do the loan modifications because they government gave all these companies billions of dollars. That 700 billion was created out of thin air. It robs each and every American who holds dollars and it's an invisible tax on their wages.
I don't need the number. I don't own a home.
The government created this whole mess. And you want them to solve it with more government spending. It's not going to work. It never does.
Yeah, I'm sure you do, and you seem to have no qualms about helping people who are underwater on their mortgages at the expense of people who don't own homes. How noble...
A comment like the one you just posted shows you obviously have no regard for the renters of this country. You want to rob from the "have nots" and give to the "haves". Meanwhile, people who currently rent would like to pay for homes with their own money while people who are underwater are looking to pay for their homes with other people's money. But sure, I'm the bad guy...
a few messages back I wrote that "Anyone for these types of programs simply does not realize that we are hurting other Americans in the process or simply doesn't care."
I'm guessing you simply don't care.
Last edited by theoakman; 01-14-2009 at 10:36 AM..
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