Stock Market… this isn’t good IMO

[TANSTAAFL]

Same things happened in late '70s - mid '80s.

House mortgages were 9-10%. Car loans were 20% (go buy that $90k F250 and $6 diesel).

We bought our house in '78, @5.2%. 3 months later, loans were pushing 9%.

The house across from us sold for $48k, ours was $42k.
2 years later, same house sold for $65k.
18 months, sold for $84k.
A year later, they walked.
Sat empty, almost 3 years. Bank sold it for $35k

We had been in our house 8 years, it was worth less than we bought it.

Shifted happens. Timing is everything
A LOT of people will be hurt by the Pedo stupidity.

Good points by ypu and cowadle. Another dynamic that was in play at that time was the deductibility of Mortgage interest, car loan interest and credit card interest. Even a jumbo mortgage now does not give a family the ability to itemize and save more in taxes. As you point out the banks have even more incentive to foreclose upon 2% mortgages assuming the property values don't drop too precipitously.

 

[StLPro2A]

Premarket. Do I stay or do I go?. Should be interesting this week, got commodities? May buy a some PDBC, we’ll see.



View attachment 279493

Told one of my advisers that I wanted to dump everything they held, putting into cash in my hand. Going to spend, enjoy, when it's gone, Slo Joe's ilk can take care of me. But, there will always be cash squirreled away from prying Libturds.

 

[dennishoddy]

True, however the issue becomes equity in the home. They are locked into low rates, great, but in a long term investment that may be worth substantially less. If they become unemployed and can't pay a loan, may be stuck in an upside down investment, credit destroyed. Take a look at who is buying up properties right and left, management companies. Same with farmland, the family owned farm is steadily becoming a thing of the past that is why they are trying to bringing back the estate tax, maybe not purposely, however I suspect their are many politicians who do have nefarious designs on the people. I am pro capitalism, pro ownership, pro individual rights by the way. I agree with you that many people who bought at low rates are much better off than those buying now, however I do remember 2007 very well.

Y’all would have hated buying in the Jimmy Carter era. I paid 18% interest with perfect credit on our first home after coming out of the Army. Some with poor credit were paying 22%.
As we all know, that forces one to buy a cheaper house because you only have so much money to put towards housing.

 

[CoronaBorealis]

Told one of my advisers that I wanted to dump everything they held, putting into cash in my hand. Going to spend, enjoy, when it's gone, Slo Joe's ilk can take care of me. But, there will always be cash squirreled away from prying Libturds.

OUCH. Folks, it always gets better. Once you cash out, it's gone for real. And if it doesn't get better, we're hosed whether you're in or out.

 

[SlugSlinger]

Dollar cost averaging is the way to go!

You might look at Vio bank. It’s owned by Midfirst out of OKC.

That’s where I keep our emergency funds.

https://www.viobank.com/

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Now:

 

[CoronaBorealis]

Pretty good rate for a savings account! To get 1.05apy at CFCU you’ve got to lock your money into a 4 year CD.

I have a HYSA with Cap1 and Discover and saw Discover is paying 1.1% as of this morning.

 

[garytx]

Ally Bank (ally.com) currently getting 1.0% on a simple savings account with no required lock.

Series I Bonds issues by the US government are paying 9.24% for six months. BUT since they are savings bonds you can't get your money for at least one year and will loose some interest.

 

[CoronaBorealis]

Ally Bank (ally.com) currently getting 1.0% on a simple savings account with no required lock.

Series I Bonds issues by the US government are paying 9.24% for six months. BUT since they are savings bonds you can't get your money for at least one year and will loose some interest.

I’ve seen those and can’t figure out where they fit into my portfolio. Some people I’ve read about put their emergency fund there, but it’s not immediately liquid plus you’re locked in for a year, as you said.

I am straight SP500 index right now, but as I get older and start transitioning to less aggressive investments, I bonds may be a good place to consider.

 

[SlugSlinger]

Now:
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Still going up.

 

[CoronaBorealis]

Still going up.


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Thats a nice rate! CFCU is running a special 13 or 26 month CD at 2.5%.