A World In Debt

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01cbr said:
I generally only engage in these types of threads to poke fun at these opinions but I will give this genuine response thing a try.




How would we EVER survive with higher interest rates!!

http://www.bcrealtor.com/d_bkcan.htm
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And this is what you come up with???

C'mon...don't waste my time.

Show me how this scenerio is the same as our current situation. Do you even know why interest rates rose back then? This argument lacks balls and relevance. And beyond that it strays from your original points.

I'm on vaca and this is clearly going no where. I am out.
 
Red695 said:
And this is what you come up with???

C'mon...don't waste my time.

Show me how this scenerio is the same as our current situation. Do you even know why interest rates rose back then? This argument lacks balls and relevance. And beyond that it strays from your original points.

I'm on vaca and this is clearly going no where. I am out.
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LOL great cop out.

Interest rates general rise during secure economic times.
 
OpenGambit said:
Why are you even arguing with a retail investor.
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Im not entirely convinced of hyperinflation and a total economic collapse???


Defiantly not a retail investor I would want to work with that for sure.

Come on people in an electrician for **** sake. Why do I feel like im the only one who has a clue sometimes?
 
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Red695 said:
You I will argue with.

If you are not a retail investor you're doing it wrong :lmao:
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save your breath. I don't waste mine.

As far as financial markets go, we don't live in the same space.
 
OpenGambit said:
save your breath. I don't waste mine.

As far as financial markets go, we don't live in the same space.
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Fair enough. Although, you do like to have your hand in a lot debates around here it seems for someone who doesn't like to waste ones breath. Somewhat futile don't you think?
 
lol thought this would be a dead thread. I took 2 years of Economics but neglecting theories I was just stating my opinion. Being an investor as a side job I do try to learn from others and try to weigh it with my meager understanding of economic theories. If we were to use prior history of massive government spending we could use the WW2 periods when massive government spending got the countries out of a recession but that was a different time and different circumstances.

When interest rates were in the double digits houses were cheaper cost of living was cheaper. People now hold more debts than before. You can use your HELOC to purchase another house or buy yourself some expensive toys. Interest rate will eventually go up to keep inflation low and it may be good to the investors but for all those that took out a mortgage of 35 years at below 4% they will feel the double digit interest rate and there will be lots of foreclosures.

On a side note I just went to the bank last week looking to buy another house and they offered me 3.49% over 4 year fixed. Think I'm going to pile on more debt lol. It's just so easy getting approved.
 
Red695 said:
Never buy paper metal. Nuff said.

What do you mean move it? Like carry it around? Or use it as currency? For the later, you can always go to melt, for the other, I workout ;)

Seriously though, vaults are easy to build. And if you own multiple properties and are smart about where you allow people to find your name none of what you said is an issue. Besides, when the apocalypse comes, me and my metal will be long gone. :lmao:
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Ok, so you wanna go out and spend it... People will notice that you're lugging gold around and will be wondering where you're keeping it. They'll eventually find out all they need in order to get it. Hoarding gold works great for those who can afford some serious security to protect it. For regular folk, things are a bit different.
 
So, Greece dumped their austerity government. Overseas markets tumble. Round two of word debt thread begins.
 
Can somebody please let me know when the Apocalypse fires up? I've invested in some precious metal and will need to know when to go get it.
 
psycho44 said:
lol thought this would be a dead thread. I took 2 years of Economics but neglecting theories I was just stating my opinion. Being an investor as a side job I do try to learn from others and try to weigh it with my meager understanding of economic theories. If we were to use prior history of massive government spending we could use the WW2 periods when massive government spending got the countries out of a recession but that was a different time and different circumstances.

When interest rates were in the double digits houses were cheaper cost of living was cheaper. People now hold more debts than before. You can use your HELOC to purchase another house or buy yourself some expensive toys. Interest rate will eventually go up to keep inflation low and it may be good to the investors but for all those that took out a mortgage of 35 years at below 4% they will feel the double digit interest rate and there will be lots of foreclosures.

On a side note I just went to the bank last week looking to buy another house and they offered me 3.49% over 4 year fixed. Think I'm going to pile on more debt lol. It's just so easy getting approved.
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So interest rates should stay low so Canadians keep piling on the debt and housing prices continue to rise?
 
Red695 said:
Never buy paper metal. Nuff said.

What do you mean move it? Like carry it around? Or use it as currency? For the later, you can always go to melt, for the other, I workout ;)

Seriously though, vaults are easy to build. And if you own multiple properties and are smart about where you allow people to find your name none of what you said is an issue. Besides, when the apocalypse comes, me and my metal will be long gone. :lmao:
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Using gold as currency would be a challenge if one thinks of the old prospecters in the western movies paying their bills with gold dust. Carrying enough around isn't a problem. A million dollars of the stuff would weigh about as much as a car battery.
The bigger problem is paying for a cheeseburger when a piece of gold the size of a sugar cube is worth a couple grand. What do you do? File off a few grains?
A cousin used to collect US Silver Certificates. Basically they were US dollars but as silver certificates they could be redeemed for silver. US dollars are now treasury notes. Paper is now paper.
Hyperinflation of 100% a day existed in parts of Europe between the wars. I've talked to people that went through it and it was weird.
If you have nothing better to do and want to depress yourself you can also watch "The Good Earth" and look up recipes for dirt soup.
 
I am curious to understand why folks think that gold will be worth anything if the **** truly hits the fan. I doubt it would be the same market or mindset as years gone by, and if someone offered me gold for my dried out turnip, I would tell them to get bent.

Then again, outside the practical uses for the stuff, I fail to see how it maintains so much value at all (same with diamonds) To me it seems like the oldest form of human vanity.

I think the barter system for real goods would make a resurgance before gold was really worth anything in the post apocalypse world.
 
Good time to buy bullion. This appears to be the bottom and with JP Morgan clearing their shorts the only way to go is up, finally. If anyone is looking to invest pm me, I'm a dealer.
 
The monster downside to all the bailouts to prop up the system is the devaluing of the U.S. dollar and the destruction of the credit worthiness of America. There is another downside to the policy of privatizing the profits and socializing the losses, and that is the loss of confidence of the U.S. dollar as the world’s reserve currency. It will come down to the Fed choosing between the banks or the buck. It looks like the dollar will be sacrificed on an altar of insolvency. It is clear, systemic risk is everywhere.

All U.S. banks are covered by the FDIC, and if a loss is big enough, it could threaten the financial system just as it did in 2008. JP Morgan has $70 trillion in total derivative exposure. The entire world has a little more than $700 trillion in derivative exposure, and one bank has 10% of all the derivative exposure on the planet! If JP Morgan gets into trouble, it alone could cause systemic failure. Today, the FBI announced an investigation into the surprise $2 billion (or more) trading loss that happened last week at the bank.

QE to infinity
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