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What I am upset about is it feels like this administration is massively cheating the very class of people who support them, out of their future.
'Feelings' are really not a valid way to analyze and determine what's real. It's unfortunate that many rely on their impressions and feelings rather than running the numbers and understanding their own finances. And, that's what it comes down to. One's own situation.
Back in '99 when I was in my late 30's, I was finally ready and able to buy my first home. I had saved up to have more than 20% down, and I also had saved enough to cover 1 full year's mortgage payments/taxes/insurance *before* I ever started looking. 30-year fixed interest rates were 7.35%. It didn't matter what I felt, it was all about the numbers and knowing what I needed to get 'there.' The prices were outrageous, but it was the Bay Area, it was super expensive, and it was never going to get any cheaper. It meant not owning property in my 20's and not even in my early 30's.
This administration is not "massively cheating" any class of people. Certainly not more so than any previous administration did, IMO, and I 'adulted' through 7 prior administrations.
'Feelings' are really not a valid way to analyze and determine what's real. It's unfortunate that many rely on their impressions and feelings rather than running the numbers and understanding their own finances. And, that's what it comes down to. One's own situation.
Back in '99 when I was in my late 30's, I was finally ready and able to buy my first home. I had saved up to have more than 20% down, and I also had saved enough to cover 1 full year's mortgage payments/taxes/insurance *before* I ever started looking. 30-year fixed interest rates were 7.35%. It didn't matter what I felt, it was all about the numbers and knowing what I needed to get 'there.' The prices were outrageous, but it was the Bay Area, it was super expensive, and it was never going to get any cheaper. It meant not owning property in my 20's and not even in my early 30's.
This administration is not "massively cheating" any class of people. Certainly not more so than any previous administration did, IMO, and I 'adulted' through 7 prior administrations.
I'm not saying its not possible, but I am saying the goal post to obtain even what many Americans consider to be an average and ordinary lifestyle has been significantly moved up - everywhere - and not just the iconized bay area of which I consider a 'choice' area and not an area where most Americans generally need to survive day to day. Mind you any American who is mindful of his spending and saving habits should be praised, but they should not live in a vacuum and be oblvious to external factors that may hender him from achieving his goals, especially if it pushes the goal post up due to bad policying.
From the late 90's hard numbers show that inflation has basically halfed the value of the dollar. A dollar today is worth basically $0.50 back then. That means a $100k salary in the 90s is worth about $50k today meaning you have to work double to obtain similar dollar values. Even in just the last 5 years we see the dollar in 2018ish worth about $0.80 today just to give an idea as to how rapidly the value of the dollar has decreased.
How many employers however have increased salaries significantly to adjust for inflation and how many lower wage to middle class Americans in todays debt prohibitive inflation are able to accommodate? I don't disagree with good saving policy, but its going to come to a point where it will not matter how much is saved, interest rates, inflation and values will begin to outpace the amount even well practiced Americans starting off at the bottom are able to accommodate for. That is called bad policying from the top.
I personally purchased in 2020 with no savings but decided to jump balls in because I was afraid of being out priced and am well aware that noone is entitled a place to live and we do need to be mindful of our spending habits, but so does our government.
Last edited by Need4Camaro; Yesterday at 11:42 AM..
'Feelings' are really not a valid way to analyze and determine what's real. It's unfortunate that many rely on their impressions and feelings rather than running the numbers and understanding their own finances. And, that's what it comes down to. One's own situation.
Back in '99 when I was in my late 30's, I was finally ready and able to buy my first home. I had saved up to have more than 20% down, and I also had saved enough to cover 1 full year's mortgage payments/taxes/insurance *before* I ever started looking. 30-year fixed interest rates were 7.35%. It didn't matter what I felt, it was all about the numbers and knowing what I needed to get 'there.' The prices were outrageous, but it was the Bay Area, it was super expensive, and it was never going to get any cheaper. It meant not owning property in my 20's and not even in my early 30's.
This administration is not "massively cheating" any class of people. Certainly not more so than any previous administration did, IMO, and I 'adulted' through 7 prior administrations.
JB hasn't intentionally cheated anyone. I'd agree with that. However, his attempts and successes in the forms of giveaways and social spending mislabeled as infrastructure in the face of increasing inflation have made inflation worse. There isn't any wiggle room. He own's that. I've got big time jet-lag but I can be very specific if you'd like.
People weren't worried about others affording a home back when I was ready to look for one, nor at any other time. The vast majority of people care about themselves and their families. They don't worry about someone else and if that unnamed person can reach a housing goal.
Feelings don't change reality, and they don't make big purchases less expensive than they are. It always comes down to the individual, and what actions they take over many years that in totality either help better themselves, or not.
Interest rates have been much higher in the past, and even double what they are now ('70s and early 80s). When someone claims to worry about groups of others, it's their own anxiety ... about themselves.
They will have to raise them. In this case, inflation is due to government spending. Nothing more. Until a Biden stops the huge deficit spending it will continue. The feds know it. We all know it. Joey has us in some deep chit that is not going to be fun getting out of.
We are stuck with either Joey or Donnie and both love their deficitis, spending and high tariffs. Just shows how dumb the electorate is. Everyone says overwhelmingly that inflation is their primary issue this election but then turn around and elect both retards that got us into this position. It’s borderline funny at this point.
People weren't worried about others affording a home back when I was ready to look for one, nor at any other time. The vast majority of people care about themselves and their families. They don't worry about someone else and if that unnamed person can reach a housing goal.
Feelings don't change reality, and they don't make big purchases less expensive than they are. It always comes down to the individual, and what actions they take over many years that in totality either help better themselves, or not.
Interest rates have been much higher in the past, and even double what they are now ('70s and early 80s). When someone claims to worry about groups of others, it's their own anxiety ... about themselves.
Yeah but housing values were a penny in the bucket between the 70's all the way up to the 90's when interest rates were between 18% to 10% compared to today where housing values are multitude times higher on a dollar value thats multitude times weaker. That along with the fact that government spending has not been so unprecedent in the aspect of money flowing out of America and not directed toward its internal economy.
It was still more realistic to save up for a home and partially finance or avoid financing altogether or even if one did finance, a 10% interest rate was not going to push a mortgage to a point of unobtainability on a home value that averaged between $40k to $60k between the 70's and 80's vs a 7% interest rate on a bread and butter home value that is averaging $500k in many munipalities.
Again, in that same period of time, the value of the dollar has only decreased while the price to obtain housing has only increased. A 7% interest rate today does more damage than a 18% interest rate yesterday, although both are unfavorable.
What brought interest rates down between the 90's was the investment in what was perceived to be new technology and accessibility to the internet of which the spurred on so much new investment in technology that it built enough economic growth to justify inflation levels thus lowering interest rates.
Today is a bit different. We are coming off of that R&D high and competing with nations that are just as capable of delivering as we are.. ..for much less money.. so it is unlikely we will see an economic explosion of that magnitude that isn't induced by the government (which we currently see in the sudden explosion of security and defense contractors, which once again is basically an artificial boost induced by money we really do not have).
Instead what we are seeing today is corporations holding back from investments, sales, R&D due to uncertainty of demand induced by inflation and high interest thus more likely to lay off labor, thus doubling the impact on several classes of people.
The high interest rates today are not going to save us from inflation, they didn't really save us from inflation yesterday either.
This isn't a matter of feelings, there is plenty of fact that todays interest rates are more prohibitive than yesterdays.
Last edited by Need4Camaro; Yesterday at 02:14 PM..
No way Powell wants to be seen as influencing the election. The day after fine, but not right before. No way.
I don't think Power will cut rates after August, unless we go into a sudden depression or declare war or have some national disaster. A mere recession won't cause that. It is too close to election time.
One thing I have not understood is why dems do not correlate the high interest rates, along with inflation and high government spending (mostly towards things that will not impact troubled areas of the American economy) as a contributor toward the mass layoffs.
What mass layoffs? Last I checked unemployment is still under 4%.
But it is actually the intent of raising interest rates in the first place. Inflation was getting out of hand, and one cause is the tight labor market. Raising interest rates was supposed to reduce hiring, maybe even cause some layoffs, as a means to reduce inflation. But consumers keep buying and employers keep hiring, which sound good but results in inflation.
Yeah but housing values were a penny in the bucket between the 70's all the way up to the 90's when interest rates were between 18% to 10% compared to today where housing values are multitude times higher on a dollar value thats multitude times weaker. That along with the fact that government spending has not been so unprecedent in the aspect of money flowing out of America and not directed toward its internal economy.
Interest rates were high in the 80s for one reason: Paul Volker raised the rates to get the terrible inflation of the 70s under control. Once that happened, the Fed was free to lower rates in the 90s. Still, mortgage rates remained around 7 or 8% until the Great Recession. The absurdly low mortgage rates of 2010-2020 were an aberration.
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