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#2
posted to rec.boats
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Is everybody happy with they new tax law
On 1/13/2018 3:18 PM, Bill wrote:
Mr. Luddite wrote: On 1/12/2018 8:12 PM, wrote: On Fri, 12 Jan 2018 17:32:35 -0500, "Mr. Luddite" wrote: On 1/12/2018 4:30 PM, wrote: On Fri, 12 Jan 2018 12:32:02 -0500, "Mr. Luddite" wrote: On 1/12/2018 10:59 AM, wrote: On Fri, 12 Jan 2018 10:00:11 -0500, Keyser Soze wrote: On 1/12/18 9:46 AM, amdx wrote: On 1/8/2018 6:29 PM, Alex wrote: wrote: On Sat, 6 Jan 2018 22:35:27 -0500, Alex wrote: amdx wrote: and hey, how about the stock market? I should do well under the new tax law, looks like I'll qualify for the pass thru, knocking off 20% of my business income from being taxable. and a Standard deduction of $24k, what's not to like. Â* I'll will lose two child deductions, but I would have lost one anyone, she's getting married. Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â* Â*Â* Mikek My 401K hit seven figures shortly after President Trump was elected and has grown even more.Â* I'll have to see how it affects my paycheck.Â* The new rates won't be active until next month.Â* If this continues I might be able to retire at 55! === I've been moving into more conservative, and more diversified assets in anticipation of a market pull back.Â* I'd suggest keeping your job a bit longer if you enjoy what you're doing.Â* Inflation becomes a real risk once you stop working. --- This email has been checked for viruses by AVG. http://www.avg.com I'm realistically looking to retire by 60.Â* I've got a few IRA's and some non-retirement investments, too.Â* I don't want to have to watch the market all the time to feel comfortable. Investing new money is challenging right now with the market so high. I'm looking more and more at real estate. Many people do well with real estate, but if you buy rentals you are buying a job. 20 some years ago I had 5 rentals, I did well with them, but when I moved out of state I sold them all, and at 62 I have zero interest being on call to do repairs or maintenance. Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â* Â*Â*Â* Mikek When the market "corrects" and tumbles, what are you going to do...go back to selling shrimp? Temporary glitches in the market are dealt with by using diversification. So far it has always recovered. If there was an actual crash that we didn't recover from, selling shrimp would not be an option either because the dollar would go down with it along with the whole world economy. That kind of thing will usually result in a massive war and these days it will be the kind of war that ends all of that global warming bull****. We will scrub those few billion of the population we need to and be in a nuclear winter for a decade or two. My, my. You certainly have a cheery outlook of the future. I am just responding to the kind of crash Harry was alluding to. It is not impossible tho. How long can we keep borrowing more than we make (as a society)? The fact remains that we have been borrowing our way to prosperity since the Reagan administration with no real plan to pay it back. One of these days that debt will overwhelm our ability to even pay the interest. Then what? That is the long range problem. In the short term, it will not take much to crash the stock market and depress the economy. A coup in the executive branch would do it as we saw in 74, a crash the middle class never recovered from. That is also what led to the "borrow and spend prosperity". I get a kick out of the economic experts giving their predictions. The gold/precious metals people say we are about to experience a major stock market crash that will make 2008's real estate bubble burst look like a minor hic-up. Then there's the pro-market guys (heard one today) who are predicting a long term (3 to 5 year) run up of stock values. I could argue either side of that. You do have a ****load of Gen Exers and Millennials chucking money into the market with their 401ks and that tends to support the bull but I still have a hard time ignoring the debt problem and the lack of real growth. We already borrow all of the money to run the government beyond entitlements and interest on the debt. What happens when revenue does not even cover that? The Fed already monetized $4.5T of our debt by buying unsold bonds. When will the world figure out our debt is a bad bet and stop renewing their bonds? Things will happen fast then. I know US "paper" is supposed to be the safest thing in the world but so was real estate ... until it wasn't. I was the one on these yacking boards who said real estate was cruising for a fall but I was 10-15 years early. I did not believe the elasticity of the financial markets to absorb that much bad debt. When it finally popped it was much worse than I predicted tho because it brought down the banking industry with it, not just the real estate market. I did not really understand the effect of the derivatives. This situation is worse than that. If the federal debt bubble pops the 30s will look like a bump in the road. It could take down "money" as we know it. Debt as it relates to global economics is a transparent, phony concept period. There's no underlying standard or base to it. Debt is only real to common people tied to the banking systems via mortgages, credit cards or loans and the penalties for defaulting are governed only within the rules of the banking systems. Global (national) debt doesn't mean a thing. To be concerned with it assumes you think a "note" is going to be called and it is going to be repaid someday by someone. It isn't. It's factored into global trade and international finance. To think it is like a bank loan that has a maturity date tied to it isn't real. A maturity date doesn't exist. If there aren't enough revenues to pay the phony interest, the government just prints more money. Debt may not cause a downfall of the country, but it may cause hyperinflation, and really bad times for anybody below the 1-3%. Look at Carter presidency. 18% savings account interest, but hard to get a loan and that is going to cost 23%,etc. I was looking at 30 years mortgages then, 16.75%. Ended up with a 3 year balloon at 13.75%. Mikek |
#3
posted to rec.boats
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Is everybody happy with they new tax law
On 1/13/2018 4:37 PM, amdx wrote:
On 1/13/2018 3:18 PM, Bill wrote: Mr. Luddite wrote: On 1/12/2018 8:12 PM, wrote: On Fri, 12 Jan 2018 17:32:35 -0500, "Mr. Luddite" wrote: On 1/12/2018 4:30 PM, wrote: On Fri, 12 Jan 2018 12:32:02 -0500, "Mr. Luddite" wrote: On 1/12/2018 10:59 AM, wrote: On Fri, 12 Jan 2018 10:00:11 -0500, Keyser Soze wrote: On 1/12/18 9:46 AM, amdx wrote: On 1/8/2018 6:29 PM, Alex wrote: wrote: On Sat, 6 Jan 2018 22:35:27 -0500, Alex wrote: amdx wrote: and hey, how about the stock market? I should do well under the new tax law, looks like I'll qualify for the pass thru, knocking off 20% of my business income from being taxable. and a Standard deduction of $24k, what's not to like. Â*Â* I'll will lose two child deductions, but I would have lost one anyone, she's getting married. Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â* Â*Â*Â* Mikek My 401K hit seven figures shortly after President Trump was elected and has grown even more.Â* I'll have to see how it affects my paycheck.Â* The new rates won't be active until next month.Â* If this continues I might be able to retire at 55! === I've been moving into more conservative, and more diversified assets in anticipation of a market pull back.Â* I'd suggest keeping your job a bit longer if you enjoy what you're doing.Â* Inflation becomes a real risk once you stop working. --- This email has been checked for viruses by AVG. http://www.avg.com I'm realistically looking to retire by 60.Â* I've got a few IRA's and some non-retirement investments, too.Â* I don't want to have to watch the market all the time to feel comfortable. Investing new money is challenging right now with the market so high. I'm looking more and more at real estate. Many people do well with real estate, but if you buy rentals you are buying a job. 20 some years ago I had 5 rentals, I did well with them, but when I moved out of state I sold them all, and at 62 I have zero interest being on call to do repairs or maintenance. Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â* Â*Â*Â*Â* Mikek When the market "corrects" and tumbles, what are you going to do...go back to selling shrimp? Temporary glitches in the market are dealt with by using diversification. So far it has always recovered. If there was an actual crash that we didn't recover from, selling shrimp would not be an option either because the dollar would go down with it along with the whole world economy. That kind of thing will usually result in a massive war and these days it will be the kind of war that ends all of that global warming bull****. We will scrub those few billion of the population we need to and be in a nuclear winter for a decade or two. My, my.Â* You certainly have a cheery outlook of the future. I am just responding to the kind of crash Harry was alluding to. It is not impossible tho. How long can we keep borrowing more than we make (as a society)? The fact remains that we have been borrowing our way to prosperity since the Reagan administration with no real plan to pay it back. One of these days that debt will overwhelm our ability to even pay the interest. Then what? That is the long range problem. In the short term, it will not take much to crash the stock market and depress the economy. A coup in the executive branch would do it as we saw in 74, a crash the middle class never recovered from. That is also what led to the "borrow and spend prosperity". I get a kick out of the economic experts giving their predictions. The gold/precious metals people say we are about to experience a major stock market crash that will make 2008's real estate bubble burst look like a minor hic-up.Â* Then there's the pro-market guys (heard one today) who are predicting a long term (3 to 5 year) run up of stock values. I could argue either side of that. You do have a ****load of Gen Exers and Millennials chucking money into the market with their 401ks and that tends to support the bull but I still have a hard time ignoring the debt problem and the lack of real growth. We already borrow all of the money to run the government beyond entitlements and interest on the debt. What happens when revenue does not even cover that? The Fed already monetized $4.5T of our debt by buyingÂ* unsold bonds. When will the world figure out our debt is a bad bet and stop renewing their bonds? Things will happen fast then. I know US "paper" is supposed to be the safest thing in the world but so was real estate ... until it wasn't. I was the one on these yacking boards who said real estate was cruising for a fall but I was 10-15 years early. I did not believe the elasticity of the financial markets to absorb that much bad debt. When it finally popped it was much worse than I predicted tho because it brought down the banking industry with it, not just the real estate market. I did not really understand the effect of the derivatives. This situation is worse than that. If the federal debt bubble pops the 30s will look like a bump in the road. It could take down "money" as we know it. Debt as it relates to global economics is a transparent, phony concept period.Â* There's no underlying standard or base to it.Â* Debt is only real to common people tied to the banking systems via mortgages, credit cards or loans and the penalties for defaulting are governed only within the rules of the banking systems. Global (national) debt doesn't mean a thing.Â* To be concerned with it assumes you think a "note" is going to be called and it is going to be repaid someday by someone.Â* It isn't.Â* It's factored into global trade and international finance. To think it is like a bank loan that has a maturity date tied to it isn't real.Â* A maturity date doesn't exist. If there aren't enough revenues to pay the phony interest, the government just prints more money. Debt may not cause a downfall of the country, but it may cause hyperinflation, and really bad times for anybody below the 1-3%. Look at Carter presidency.Â*Â* 18% savings account interest, but hard to get a loan and that is going to cost 23%,etc. Â*I was looking at 30 years mortgages then, 16.75%. Ended up with a 3 year balloon at 13.75%. Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â* Â*Â* Mikek My first mortgage was in 1982. Economy was still reeling from the Carter years. Banks were offering 12.5% for a conventional, 30 year mortgage. I decided to contact the VA and ended up with a VA backed conventional mortgage at 11%. Seemed like a great deal at the time. I remember they had "points" then also. |
#4
posted to rec.boats
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Is everybody happy with they new tax law
On Sat, 13 Jan 2018 16:54:46 -0500, "Mr. Luddite"
wrote: My first mortgage was in 1982. Economy was still reeling from the Carter years. Banks were offering 12.5% for a conventional, 30 year mortgage. I decided to contact the VA and ended up with a VA backed conventional mortgage at 11%. Seemed like a great deal at the time. I remember they had "points" then also. The points is what kept me away from a VA mortgage. I ended up with a better rate bottom line from a bank. |
#5
posted to rec.boats
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Is everybody happy with they new tax law
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#6
posted to rec.boats
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Is everybody happy with they new tax law
On Sat, 13 Jan 2018 17:46:04 -0500, "Mr. Luddite"
wrote: On 1/13/2018 5:26 PM, wrote: On Sat, 13 Jan 2018 16:54:46 -0500, "Mr. Luddite" wrote: My first mortgage was in 1982. Economy was still reeling from the Carter years. Banks were offering 12.5% for a conventional, 30 year mortgage. I decided to contact the VA and ended up with a VA backed conventional mortgage at 11%. Seemed like a great deal at the time. I remember they had "points" then also. The points is what kept me away from a VA mortgage. I ended up with a better rate bottom line from a bank. I think all mortgages, VA or not, had points back then. They just factored them into the loan. Not the one I got, it is what made the decision for me. It was 1/4% higher than the VA (maybe hiding the points?) but no points. I planned on paying it off early anyway so I didn't care as much about the rate. The points were right now. |
#7
posted to rec.boats
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Is everybody happy with they new tax law
On Sat, 13 Jan 2018 17:46:04 -0500, "Mr. Luddite" wrote:
On 1/13/2018 5:26 PM, wrote: On Sat, 13 Jan 2018 16:54:46 -0500, "Mr. Luddite" wrote: My first mortgage was in 1982. Economy was still reeling from the Carter years. Banks were offering 12.5% for a conventional, 30 year mortgage. I decided to contact the VA and ended up with a VA backed conventional mortgage at 11%. Seemed like a great deal at the time. I remember they had "points" then also. The points is what kept me away from a VA mortgage. I ended up with a better rate bottom line from a bank. I think all mortgages, VA or not, had points back then. They just factored them into the loan. Agree. |
#8
posted to rec.boats
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Is everybody happy with they new tax law
On Saturday, 13 January 2018 17:54:51 UTC-4, Mr. Luddite wrote:
On 1/13/2018 4:37 PM, amdx wrote: On 1/13/2018 3:18 PM, Bill wrote: Mr. Luddite wrote: On 1/12/2018 8:12 PM, wrote: On Fri, 12 Jan 2018 17:32:35 -0500, "Mr. Luddite" wrote: On 1/12/2018 4:30 PM, wrote: On Fri, 12 Jan 2018 12:32:02 -0500, "Mr. Luddite" wrote: On 1/12/2018 10:59 AM, wrote: On Fri, 12 Jan 2018 10:00:11 -0500, Keyser Soze wrote: On 1/12/18 9:46 AM, amdx wrote: On 1/8/2018 6:29 PM, Alex wrote: wrote: On Sat, 6 Jan 2018 22:35:27 -0500, Alex wrote: amdx wrote: and hey, how about the stock market? I should do well under the new tax law, looks like I'll qualify for the pass thru, knocking off 20% of my business income from being taxable. and a Standard deduction of $24k, what's not to like. Â*Â* I'll will lose two child deductions, but I would have lost one anyone, she's getting married. Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â* Â*Â*Â* Mikek My 401K hit seven figures shortly after President Trump was elected and has grown even more.Â* I'll have to see how it affects my paycheck.Â* The new rates won't be active until next month.Â* If this continues I might be able to retire at 55! === I've been moving into more conservative, and more diversified assets in anticipation of a market pull back.Â* I'd suggest keeping your job a bit longer if you enjoy what you're doing.Â* Inflation becomes a real risk once you stop working. --- This email has been checked for viruses by AVG. http://www.avg.com I'm realistically looking to retire by 60.Â* I've got a few IRA's and some non-retirement investments, too.Â* I don't want to have to watch the market all the time to feel comfortable. Investing new money is challenging right now with the market so high. I'm looking more and more at real estate. Many people do well with real estate, but if you buy rentals you are buying a job. 20 some years ago I had 5 rentals, I did well with them, but when I moved out of state I sold them all, and at 62 I have zero interest being on call to do repairs or maintenance. Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â* Â*Â*Â*Â* Mikek When the market "corrects" and tumbles, what are you going to do...go back to selling shrimp? Temporary glitches in the market are dealt with by using diversification. So far it has always recovered. If there was an actual crash that we didn't recover from, selling shrimp would not be an option either because the dollar would go down with it along with the whole world economy. That kind of thing will usually result in a massive war and these days it will be the kind of war that ends all of that global warming bull****. We will scrub those few billion of the population we need to and be in a nuclear winter for a decade or two. My, my.Â* You certainly have a cheery outlook of the future. I am just responding to the kind of crash Harry was alluding to. It is not impossible tho. How long can we keep borrowing more than we make (as a society)? The fact remains that we have been borrowing our way to prosperity since the Reagan administration with no real plan to pay it back. One of these days that debt will overwhelm our ability to even pay the interest. Then what? That is the long range problem. In the short term, it will not take much to crash the stock market and depress the economy. A coup in the executive branch would do it as we saw in 74, a crash the middle class never recovered from. That is also what led to the "borrow and spend prosperity". I get a kick out of the economic experts giving their predictions. The gold/precious metals people say we are about to experience a major stock market crash that will make 2008's real estate bubble burst look like a minor hic-up.Â* Then there's the pro-market guys (heard one today) who are predicting a long term (3 to 5 year) run up of stock values. I could argue either side of that. You do have a ****load of Gen Exers and Millennials chucking money into the market with their 401ks and that tends to support the bull but I still have a hard time ignoring the debt problem and the lack of real growth. We already borrow all of the money to run the government beyond entitlements and interest on the debt. What happens when revenue does not even cover that? The Fed already monetized $4.5T of our debt by buyingÂ* unsold bonds. When will the world figure out our debt is a bad bet and stop renewing their bonds? Things will happen fast then. I know US "paper" is supposed to be the safest thing in the world but so was real estate ... until it wasn't. I was the one on these yacking boards who said real estate was cruising for a fall but I was 10-15 years early. I did not believe the elasticity of the financial markets to absorb that much bad debt. When it finally popped it was much worse than I predicted tho because it brought down the banking industry with it, not just the real estate market. I did not really understand the effect of the derivatives. This situation is worse than that. If the federal debt bubble pops the 30s will look like a bump in the road. It could take down "money" as we know it. Debt as it relates to global economics is a transparent, phony concept period.Â* There's no underlying standard or base to it.Â* Debt is only real to common people tied to the banking systems via mortgages, credit cards or loans and the penalties for defaulting are governed only within the rules of the banking systems. Global (national) debt doesn't mean a thing.Â* To be concerned with it assumes you think a "note" is going to be called and it is going to be repaid someday by someone.Â* It isn't.Â* It's factored into global trade and international finance. To think it is like a bank loan that has a maturity date tied to it isn't real.Â* A maturity date doesn't exist. If there aren't enough revenues to pay the phony interest, the government just prints more money. Debt may not cause a downfall of the country, but it may cause hyperinflation, and really bad times for anybody below the 1-3%. Look at Carter presidency.Â*Â* 18% savings account interest, but hard to get a loan and that is going to cost 23%,etc. Â*I was looking at 30 years mortgages then, 16.75%. Ended up with a 3 year balloon at 13.75%. Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â*Â* Â*Â* Mikek My first mortgage was in 1982. Economy was still reeling from the Carter years. Banks were offering 12.5% for a conventional, 30 year mortgage. I decided to contact the VA and ended up with a VA backed conventional mortgage at 11%. Seemed like a great deal at the time. I remember they had "points" then also. My firdt mortgage through the Nova Scotia Co-op Housing in 1974 was at 11%. Sure was glad about that when others were getting burned at 18-20%. Most I could borow was $23K. Not quite enough to build the Cedar cape Cod style house we wanted with cathedral ceilings of V joint tongue & groove pine held up on 4" x 12" exposed Douglas Fir beams that ran the length of the house on the main and 2nd story ceilings. Used the smooth fit 24" cedar shingles on the exterior walls that came in cardboard boxes from British Columbia. Everyone else in the program was building bland bungalows. Yes, I did have to go find another $9K from a 2nd mortgage to finish the house. |
#9
posted to rec.boats
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Is everybody happy with they new tax law
On Sat, 13 Jan 2018 17:40:10 -0800 (PST), True North wrote:
On Saturday, 13 January 2018 17:54:51 UTC-4, Mr. Luddite wrote: On 1/13/2018 4:37 PM, amdx wrote: On 1/13/2018 3:18 PM, Bill wrote: Mr. Luddite wrote: On 1/12/2018 8:12 PM, wrote: On Fri, 12 Jan 2018 17:32:35 -0500, "Mr. Luddite" wrote: On 1/12/2018 4:30 PM, wrote: On Fri, 12 Jan 2018 12:32:02 -0500, "Mr. Luddite" wrote: On 1/12/2018 10:59 AM, wrote: On Fri, 12 Jan 2018 10:00:11 -0500, Keyser Soze wrote: On 1/12/18 9:46 AM, amdx wrote: On 1/8/2018 6:29 PM, Alex wrote: wrote: On Sat, 6 Jan 2018 22:35:27 -0500, Alex wrote: amdx wrote: and hey, how about the stock market? I should do well under the new tax law, looks like I'll qualify for the pass thru, knocking off 20% of my business income from being taxable. and a Standard deduction of $24k, what's not to like. ** I'll will lose two child deductions, but I would have lost one anyone, she's getting married. **************************** Mikek My 401K hit seven figures shortly after President Trump was elected and has grown even more.* I'll have to see how it affects my paycheck.* The new rates won't be active until next month.* If this continues I might be able to retire at 55! === I've been moving into more conservative, and more diversified assets in anticipation of a market pull back.* I'd suggest keeping your job a bit longer if you enjoy what you're doing.* Inflation becomes a real risk once you stop working. --- This email has been checked for viruses by AVG. http://www.avg.com I'm realistically looking to retire by 60.* I've got a few IRA's and some non-retirement investments, too.* I don't want to have to watch the market all the time to feel comfortable. Investing new money is challenging right now with the market so high. I'm looking more and more at real estate. Many people do well with real estate, but if you buy rentals you are buying a job. 20 some years ago I had 5 rentals, I did well with them, but when I moved out of state I sold them all, and at 62 I have zero interest being on call to do repairs or maintenance. ***************************** Mikek When the market "corrects" and tumbles, what are you going to do...go back to selling shrimp? Temporary glitches in the market are dealt with by using diversification. So far it has always recovered. If there was an actual crash that we didn't recover from, selling shrimp would not be an option either because the dollar would go down with it along with the whole world economy. That kind of thing will usually result in a massive war and these days it will be the kind of war that ends all of that global warming bull****. We will scrub those few billion of the population we need to and be in a nuclear winter for a decade or two. My, my.* You certainly have a cheery outlook of the future. I am just responding to the kind of crash Harry was alluding to. It is not impossible tho. How long can we keep borrowing more than we make (as a society)? The fact remains that we have been borrowing our way to prosperity since the Reagan administration with no real plan to pay it back. One of these days that debt will overwhelm our ability to even pay the interest. Then what? That is the long range problem. In the short term, it will not take much to crash the stock market and depress the economy. A coup in the executive branch would do it as we saw in 74, a crash the middle class never recovered from. That is also what led to the "borrow and spend prosperity". I get a kick out of the economic experts giving their predictions. The gold/precious metals people say we are about to experience a major stock market crash that will make 2008's real estate bubble burst look like a minor hic-up.* Then there's the pro-market guys (heard one today) who are predicting a long term (3 to 5 year) run up of stock values. I could argue either side of that. You do have a ****load of Gen Exers and Millennials chucking money into the market with their 401ks and that tends to support the bull but I still have a hard time ignoring the debt problem and the lack of real growth. We already borrow all of the money to run the government beyond entitlements and interest on the debt. What happens when revenue does not even cover that? The Fed already monetized $4.5T of our debt by buying* unsold bonds. When will the world figure out our debt is a bad bet and stop renewing their bonds? Things will happen fast then. I know US "paper" is supposed to be the safest thing in the world but so was real estate ... until it wasn't. I was the one on these yacking boards who said real estate was cruising for a fall but I was 10-15 years early. I did not believe the elasticity of the financial markets to absorb that much bad debt. When it finally popped it was much worse than I predicted tho because it brought down the banking industry with it, not just the real estate market. I did not really understand the effect of the derivatives. This situation is worse than that. If the federal debt bubble pops the 30s will look like a bump in the road. It could take down "money" as we know it. Debt as it relates to global economics is a transparent, phony concept period.* There's no underlying standard or base to it.* Debt is only real to common people tied to the banking systems via mortgages, credit cards or loans and the penalties for defaulting are governed only within the rules of the banking systems. Global (national) debt doesn't mean a thing.* To be concerned with it assumes you think a "note" is going to be called and it is going to be repaid someday by someone.* It isn't.* It's factored into global trade and international finance. To think it is like a bank loan that has a maturity date tied to it isn't real.* A maturity date doesn't exist. If there aren't enough revenues to pay the phony interest, the government just prints more money. Debt may not cause a downfall of the country, but it may cause hyperinflation, and really bad times for anybody below the 1-3%. Look at Carter presidency.** 18% savings account interest, but hard to get a loan and that is going to cost 23%,etc. *I was looking at 30 years mortgages then, 16.75%. Ended up with a 3 year balloon at 13.75%. *************************** Mikek My first mortgage was in 1982. Economy was still reeling from the Carter years. Banks were offering 12.5% for a conventional, 30 year mortgage. I decided to contact the VA and ended up with a VA backed conventional mortgage at 11%. Seemed like a great deal at the time. I remember they had "points" then also. My firdt mortgage through the Nova Scotia Co-op Housing in 1974 was at 11%. Sure was glad about that when others were getting burned at 18-20%. Most I could borow was $23K. Not quite enough to build the Cedar cape Cod style house we wanted with cathedral ceilings of V joint tongue & groove pine held up on 4" x 12" exposed Douglas Fir beams that ran the length of the house on the main and 2nd story ceilings. Used the smooth fit 24" cedar shingles on the exterior walls that came in cardboard boxes from British Columbia. Everyone else in the program was building bland bungalows. Yes, I did have to go find another $9K from a 2nd mortgage to finish the house. 'firdt'? 'cape Cod'? We're so proud of you. |
#10
posted to rec.boats
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Is everybody happy with they new tax law
John H wrote:
On Sat, 13 Jan 2018 17:40:10 -0800 (PST), True North wrote: On Saturday, 13 January 2018 17:54:51 UTC-4, Mr. Luddite wrote: On 1/13/2018 4:37 PM, amdx wrote: On 1/13/2018 3:18 PM, Bill wrote: Mr. Luddite wrote: On 1/12/2018 8:12 PM, wrote: On Fri, 12 Jan 2018 17:32:35 -0500, "Mr. Luddite" wrote: On 1/12/2018 4:30 PM, wrote: On Fri, 12 Jan 2018 12:32:02 -0500, "Mr. Luddite" wrote: On 1/12/2018 10:59 AM, wrote: On Fri, 12 Jan 2018 10:00:11 -0500, Keyser Soze wrote: On 1/12/18 9:46 AM, amdx wrote: On 1/8/2018 6:29 PM, Alex wrote: wrote: On Sat, 6 Jan 2018 22:35:27 -0500, Alex wrote: amdx wrote: and hey, how about the stock market? I should do well under the new tax law, looks like I'll qualify for the pass thru, knocking off 20% of my business income from being taxable. and a Standard deduction of $24k, what's not to like. I'll will lose two child deductions, but I would have lost one anyone, she's getting married. Mikek My 401K hit seven figures shortly after President Trump was elected and has grown even more. I'll have to see how it affects my paycheck. The new rates won't be active until next month. If this continues I might be able to retire at 55! === I've been moving into more conservative, and more diversified assets in anticipation of a market pull back. I'd suggest keeping your job a bit longer if you enjoy what you're doing. Inflation becomes a real risk once you stop working. --- This email has been checked for viruses by AVG. http://www.avg.com I'm realistically looking to retire by 60. I've got a few IRA's and some non-retirement investments, too. I don't want to have to watch the market all the time to feel comfortable. Investing new money is challenging right now with the market so high. I'm looking more and more at real estate. Many people do well with real estate, but if you buy rentals you are buying a job. 20 some years ago I had 5 rentals, I did well with them, but when I moved out of state I sold them all, and at 62 I have zero interest being on call to do repairs or maintenance. Mikek When the market "corrects" and tumbles, what are you going to do...go back to selling shrimp? Temporary glitches in the market are dealt with by using diversification. So far it has always recovered. If there was an actual crash that we didn't recover from, selling shrimp would not be an option either because the dollar would go down with it along with the whole world economy. That kind of thing will usually result in a massive war and these days it will be the kind of war that ends all of that global warming bull****. We will scrub those few billion of the population we need to and be in a nuclear winter for a decade or two. My, my. You certainly have a cheery outlook of the future. I am just responding to the kind of crash Harry was alluding to. It is not impossible tho. How long can we keep borrowing more than we make (as a society)? The fact remains that we have been borrowing our way to prosperity since the Reagan administration with no real plan to pay it back. One of these days that debt will overwhelm our ability to even pay the interest. Then what? That is the long range problem. In the short term, it will not take much to crash the stock market and depress the economy. A coup in the executive branch would do it as we saw in 74, a crash the middle class never recovered from. That is also what led to the "borrow and spend prosperity". I get a kick out of the economic experts giving their predictions. The gold/precious metals people say we are about to experience a major stock market crash that will make 2008's real estate bubble burst look like a minor hic-up. Then there's the pro-market guys (heard one today) who are predicting a long term (3 to 5 year) run up of stock values. I could argue either side of that. You do have a ****load of Gen Exers and Millennials chucking money into the market with their 401ks and that tends to support the bull but I still have a hard time ignoring the debt problem and the lack of real growth. We already borrow all of the money to run the government beyond entitlements and interest on the debt. What happens when revenue does not even cover that? The Fed already monetized $4.5T of our debt by buying unsold bonds. When will the world figure out our debt is a bad bet and stop renewing their bonds? Things will happen fast then. I know US "paper" is supposed to be the safest thing in the world but so was real estate ... until it wasn't. I was the one on these yacking boards who said real estate was cruising for a fall but I was 10-15 years early. I did not believe the elasticity of the financial markets to absorb that much bad debt. When it finally popped it was much worse than I predicted tho because it brought down the banking industry with it, not just the real estate market. I did not really understand the effect of the derivatives. This situation is worse than that. If the federal debt bubble pops the 30s will look like a bump in the road. It could take down "money" as we know it. Debt as it relates to global economics is a transparent, phony concept period. There's no underlying standard or base to it. Debt is only real to common people tied to the banking systems via mortgages, credit cards or loans and the penalties for defaulting are governed only within the rules of the banking systems. Global (national) debt doesn't mean a thing. To be concerned with it assumes you think a "note" is going to be called and it is going to be repaid someday by someone. It isn't. It's factored into global trade and international finance. To think it is like a bank loan that has a maturity date tied to it isn't real. A maturity date doesn't exist. If there aren't enough revenues to pay the phony interest, the government just prints more money. Debt may not cause a downfall of the country, but it may cause hyperinflation, and really bad times for anybody below the 1-3%. Look at Carter presidency. 18% savings account interest, but hard to get a loan and that is going to cost 23%,etc. I was looking at 30 years mortgages then, 16.75%. Ended up with a 3 year balloon at 13.75%. Mikek My first mortgage was in 1982. Economy was still reeling from the Carter years. Banks were offering 12.5% for a conventional, 30 year mortgage. I decided to contact the VA and ended up with a VA backed conventional mortgage at 11%. Seemed like a great deal at the time. I remember they had "points" then also. My firdt mortgage through the Nova Scotia Co-op Housing in 1974 was at 11%. Sure was glad about that when others were getting burned at 18-20%. Most I could borow was $23K. Not quite enough to build the Cedar cape Cod style house we wanted with cathedral ceilings of V joint tongue & groove pine held up on 4" x 12" exposed Douglas Fir beams that ran the length of the house on the main and 2nd story ceilings. Used the smooth fit 24" cedar shingles on the exterior walls that came in cardboard boxes from British Columbia. Everyone else in the program was building bland bungalows. Yes, I did have to go find another $9K from a 2nd mortgage to finish the house. 'firdt'? 'cape Cod'? We're so proud of you. His brain and hands are cold. Give him a break! |
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