Not Again... Americans who can't afford their mortgage up 145%

[UncleBuck]

yet somehow you think it's the banks fault instead of Americans who happened not to read title12.

no one here is interested in your trailernomics.

 

[Lucky Luke]

Some interesting views on the housing affordability and budgeting in general.

Yes people do borrow more than they can afford. ususally because they dont know how much having a house costs to run.

But being heavily in debt can, in the right market make you considerable money fairly fast. Thats why there is Good Debt and Bad debt.
My advice (not that its worth much) is to buy a home you can comfortably pay off. Have no other debt except the house. That repayment on a car that you could afford if you wanted to put into a separate bank account. When there is enough in there for a deposit on an investment home or you have enough equity in you PPR (Principal Place of Residence) get a interest only loan on an investment property. When the equity in that is enough for another investment property get another interest only mortgage. remember interest is tax deductible. Any extra cash goes into your PPR to pay that loan off.

Housing prices go up..but that doesnt help you to much if you only have one house. Buying and selling in the same area at roughly the same time means there is no advantage to you.

 

[Fogdog]

Some interesting views on the housing affordability and budgeting in general.

Yes people do borrow more than they can afford. ususally because they dont know how much having a house costs to run.

But being heavily in debt can, in the right market make you considerable money fairly fast. Thats why there is Good Debt and Bad debt.
My advice (not that its worth much) is to buy a home you can comfortably pay off. Have no other debt except the house. That repayment on a car that you could afford if you wanted to put into a separate bank account. When there is enough in there for a deposit on an investment home or you have enough equity in you PPR (Principal Place of Residence) get a interest only loan on an investment property. When the equity in that is enough for another investment property get another interest only mortgage. remember interest is tax deductible. Any extra cash goes into your PPR to pay that loan off.

Housing prices go up..but that doesnt help you to much if you only have one house. Buying and selling in the same area at roughly the same time means there is no advantage to you.

Oh, so you mean buying a motor home with the equity is a good idea? Thanks. I think I'll talk this over with my wife. Or better yet, I'll just surprise her with our land yacht.

 

[twostrokenut]

wish that was true too. I know conservatives have been selling that idea as some sort of silver bullet to stem the tide of ever increasing healthcare costs but it's been proven to be bullshit, countless times. Hell, insurers can already do this in several states.

They've actually found that sales across state lines would reduce premiums for those who are healthy at a given time while increasing premiums and reducing access to coverage for those with current or past health problems.

It wouldn't be any better that what we have now, just shittier in a different way.

http://www.urban.org/sites/default/files/publication/81866/2000840-Sales-of-Insurance-across-State-Lines.pdf

https://www.nytimes.com/2015/09/01/upshot/the-problem-with-gop-plans-to-sell-health-insurance-across-state-lines.html

https://www.forbes.com/sites/brucejapsen/2017/02/28/why-trumps-freedom-to-sell-insurance-across-state-lines-wont-work/#2bd365691a62

https://www.bloomberg.com/view/articles/2017-03-06/selling-health-insurance-across-state-lines-won-t-save-money

ttystikk edit: You are preaching to the choir about single payer bro. I never said that couldn't work.

let's just wax philosophical......what if you started working at 14 years old and kept those premiums and that coverage for life regardless of state or job?

 

[Fogdog]

they weren't trying to. obama did not campaign on single payer.

i don't have the patience to describe how the three branches of government work.

you've more patience than I.

 

[twostrokenut]

not sure about neoliberal. more like realist.

i think you are forgetting the Golden rule: he who has the gold makes the rules.

alot of people rich and poor were ruined by the recession. there is a small percentage that makes money whether the economy is shit or fantastic. that's who really knows how the economy works.

brilliant! now what happens when the 90% hold the gold and silver?

 

[twostrokenut]

Yep, you are right. Everybody should take care of themselves just like you do. But they don't or they get unlucky or the job they work eventually disabled them. This is called reality. No "should" will ever change reality. So, I ask, given that as you say fools and their money will always be parted, without support to help them bridge their difficult times, what's to keep this country from becoming a horde of homeless sick and violent people with nothing left to lose?

Don't you Christian terrorists have a saying about how there will always be poor people? If there will always be poor people because Jesus said so, how can you blame the person? One person climbs out of poverty and another falls right in.

What's your solution? Tell them what they "should" do until they die of starvation or disease?

You are making a great case for socialism or social safety nets at the least because there will always be poor people no matter what Saint Pie tells them "should" happen.

Jesus ment "poor" in character, did he not?

 

[twostrokenut]

Quite right, and the rich have been rewriting the rules to favor themselves for so long they have forgotten about anyone else but themselves, or the consequences.

The poor aren't writing rules or loading up on destabilizing debt, that's for damned sure.

I want to thank everyone for helping me clarify my thinking on these matters.

I'm no longer of the opinion that we can do the next Great Crash and resultant Great Depression, because the will isn't there to stop it.

Therefore, I'm going to study up on how to batten down the hatches of my own financial house for the storm y'all have convinced me, beyond any doubt, is coming.

I suggest that everyone else does the same.

@whitebb2727 you're pretty self sufficient and in a relatively remote area. You'll be fine. 300 million of your countrymen will not.

I hope we survive what's coming.

the only way is to pay it off dude.

 

[UncleBuck]

the only way is to pay it off dude.

again, no one is interested in your trailernomics. no one.

 

[Lucky Luke]

Oh, so you mean buying a motor home with the equity is a good idea? Thanks. I think I'll talk this over with my wife. Or better yet, I'll just surprise her with our land yacht.

umm..i hope i detect sarcasm..

I once surprised my wife with a house that I didnt even look at..That went down well,.."You did what?"

 

[jonsnow399]

Short sellers profit from exactly the opposite, and there might be more of these opportunities going forward.

short Tesla

 

[ttystikk]

short Tesla

Lol I've been watching that for months now.

I'm waiting for the bungling of the Model 3 rollout to start, that will really put some downward pressure on a stock price with no relation to production, profits or prospects.

 

[jonsnow399]

Lol I've been watching that for months now.

I'm waiting for the bungling of the Model 3 rollout to start, that will really put some downward pressure on a stock price with no relation to production, profits or prospects.

 

[ttystikk]

This belongs in my economics thread. Good stuff!

Bob Lutz has been one of my personal automotive gurus for decades now. When he says something about cars, listen carefully. He's never wrong.

 

[ttystikk]

short Tesla

... And Snapchat.

 

[TacoMac]

Google and Facebook are the worst offenders. It's all built on advertising. All of it. Billions upon billions of dollars in value for companies that in reality have no tangible value at all.

 

[ttystikk]

Google and Facebook are the worst offenders. It's all built on advertising. All of it. Billions upon billions of dollars in value for companies that in reality have no tangible value at all.

They have tangible value in the attention they get from their users.

Did you know that those same two companies have captured all of the revenue growth in advertising over the last 3 years? ALL of it?

 

[TacoMac]

They have tangible value in the attention they get from their users.

Did you know that those same two companies have captured all of the revenue growth in advertising over the last 3 years? ALL of it?

And it's completely worthless.

When's the last time you ever bought anything off a Facebook ad? Do you know anybody that ever has? How often?

I never have. I don't know anybody that ever has even once.

That's why companies like GM, Ford, GE, and most other big companies cancelled their contracts with Facebook: they weren't getting a single damn thing out of it.

It's a gossip center. Nothing more. It has absolutely ZERO real value to anybody other than penny ante game makers.

 

[ttystikk]

And it's completely worthless.

When's the last time you ever bought anything off a Facebook ad? Do you know anybody that ever has? How often?

I never have. I don't know anybody that ever has even once.

That's why companies like GM, Ford, GE, and most other big companies cancelled their contracts with Facebook: they weren't getting a single damn thing out of it.

It's a gossip center. Nothing more. It has absolutely ZERO real value to anybody other than penny ante game makers.

Like Tom Bollock, the inventor of Farmville, or the concept of bilking real money out of real idiots for virtual goods in a game that did nothing. Untold hours of paid office time have been wasted while employees played that stupid shit.

He became a billionaire(!) for this highly dubious public service and started buying companies in the Cannabis space- and crapifying them.

NEVER buy anything with the Surna name on it.

The collapse of civilisation is upon us...

 

[TacoMac]

Again, he became a billionaire NOT on the actual money people spent, but the typical, ridiculous "valuations" people put on their stocks.

Zynga (the company) has only made about 500 million from Farmville total. So how the hell is it magically worth billions?

Valuation.

Somebody makes 100 bucks one month, so they tell you they'll make 200 the next, 400 the next, 800 the next, etc. So you jack that valuation up, then sell your stock off and VOILA! Instant billionaire even though you never even made any more than half a billion at best to begin with.

Then of course 5 years later the company has no real new prospects, sales slow, the stock plummets and becomes near worthless and they start all over again.

Projections should be illegal. Period. A stock should be valued based on revenue and net profit, not some phantom valuation that has no basis in reality.