I'd like to thank Veritas Faust for the funniest, yet most appropriate, HP'er comment ever.
"Serfdom is cool, its so retro...lets party like its 1399!"
Brilliant.
Homedebtors, bend down and smell the glove.
February 12, 2007
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28 comments:
I'm not so sure that the serfs aren't the renters who've been saving dollars for the downturn in the re market.
I sincerely think that it's just as likely that the dollar falls off a cliff and the nominal values of housing stays where it is or even goes up. Because the US Gov't simply CAN'T allow the US economy to fall into a deflationary spiral. That would be certain death. Our future obligations MUST be paid with cheaper dollars. Period.
LOL but according to the homedebtors, they're smart and we're dumbasses for not "buying!"
All I know is I took the money I would have put into a down payment, started my business with it instead (while I continued to rent), and now I'm going to pay ca$h for a house. If I had "bought" a house with that money instead, I'd still be a serf slaving at a job to pay the mortgage.
I dont get it? Somebody clue me in, what does party like its 1399 mean? thanks.
Spinal Tap - Smell the Glove. Classic!
Rent equals mobility and what "white collar" companies value in employees today is the ability to be mobile and be able to hop from one location to another.
Therefore, the professional a/o entreprenuerial renters will be the knights/squires whereas the homedebtors will be serfs.
".........the US Gov't simply CAN'T allow the US economy to fall into a deflationary spiral. That would be certain death. Our future obligations MUST be paid with cheaper dollars. Period. "
I've had the same thought, but I counterbalance it with the notion that the monied elites who run the government are not about to let their trust-funds and paper financials burn on the altar of hyperinflation so that the riff-raff can have a free house. Besides, your house may be paid off but that does you little good if you can't sell it to anyone and you can't afford food.
As far as being a renter goes, I console myself that if I see hyperinflation, I can jump in the market anytime with the huge down payment I've managed to save while waiting for the price drops (which are here already, btw).
"it's just as likely that the dollar falls off a cliff and the nominal values of housing stays where it is or even goes up. Because the US Gov't simply CAN'T allow the US economy to fall into a deflationary spiral."
If the dollar falls, meaning anywhere from 5 to 10+ USD to 1 Euro type of devaluation, the entire Federal Reserve system goes belly up along with the Federal govt's ability to borrow. They'd rather sacrifice housing than their ability to make any money on the world's exchanges.
"Because the US Gov't simply CAN'T allow the US economy to fall into a deflationary spiral."
"The graveyards are full of indispensable men." - De Gaulle
"if I see hyperinflation, I can jump in the market anytime with the huge down payment I've managed"
Multi-currency accounts (see everbank.com) or for a more trading/active account (see oanda.com), are more common today then ever before. As long as gold and silver don't become monetarized, and remain in the world of stagflationary hedge positions, it's highly unlikely that the dollar will collapse against any of its major trading pairs (JPYen, Euro, Pound Sterling, Aussie) for quite some time. Realize, all the central banks play this game and don't want any one of the volume players to collapse any time soon. I think the USD will devaluate, much like the British Pound did from '45 to '75, in cascades of downward trading ranges which can take decades to iron out. That's plenty of time for US housing to bottom out for some decent deals in most major markets. During this time, a portfolio of multi-currency baskets (which also include the USD during retracements) and PMs will retain one's purchasing power.
"Rent equals mobility and what "white collar" companies value in employees today is the ability to be mobile and be able to hop from one location to another."
Either that or just the convenience of being mobile. As an author I can work from anywhere and love the freedom to move around as I choose. I've lived in a few different areas of Phoenix/Scottsdale, and having found none that I particularly love, I'm moving to CA, and as a renter (initially, anyway) I'll have the freedom to try out different areas there, or to up and leave if I want.
This blog has the best wit, even after the collapse I will come here for the humor!
USDs are all over the world and thus, have some value in terms of the world's exchanges: cash, commodities, transactions, etc. This is the world of international banking and it won't end anytime soon.
US real estate, however, is about locals (and now the worldwide flippers and novice investors) getting huffy on low interest, subprime borrowing to jack up prices in most major markets.
Of the two, US housing can go w/o the world going to shambles but once the dollars go, the entire world's banking goes with it.
"As an author I can work from anywhere and love the freedom to move around as I choose."
I believe you're included in the grouping of professional and entreprenuerial knights and squires.
Property taxes = serfdom.
Do a Wikipedia search on serfdom.
"In medieval Europe, almost all land was owned by the nobility, the Church, or royalty. Serfs were allowed to work certain plots of land in exchange for a percentage of the product they produced."
How about It's The End of The World As We Know It".
Prince coined it:
http://www.lyricsdepot.com/prince/1999.html
Lets have a war!
we can blame it on the middle class
Lets have a war!
jack up the Dow Jones
theres too many of us.....
theres too many of us.....
theres too many of us.....
Saw on MSN money the other day that if the AMT isnt recalced and adjusted for inflation its gonna generate something like 1 trillion over the course of the next 10 years. I can see congress dragging their feet (both parties) for a few years on this one to cover for the excesses of the past. Middle class will foot the bill, worry not.
Feds cannot allow massive dollar collapse(hyperinflation) because 80 million boomers are about to begin collecting social security, and China, Japan, Britain,and Saudis will stop lending us money.
Look for FB tax bailouts and other socialist treats
Yeah Veritas, I have to tell you: I laughed until my sides started to ache. Damn good line! Regards, Python.
Party like it's 1399....OMG, I am laughing so hard right now!!! Thanks HP'ers for brightening up my day!!!
Rent equals mobility and what "white collar" companies value in employees today is the ability to be mobile and be able to hop from one location to another.
I am a project engineer and a job typically lasts 3-4 years. Without exception the key question I am asked at an interview is HOW SOON CAN YOU BE HERE. As a renter I can answer in 30 to 60 days. If I had to answer "as soon as I sell my house" I would be left in the dust. For some of us owning a house is just not in the cards.
No no no no no!
THIS is is "Smell the Glove"
http://tinyurl.com/yobgkx
Is there any difference between serfdom of old and dealing with a realtor?
I mean your bent over the wood pile taking one for the team in either case!
>>Saw on MSN money the other day that if the AMT isnt recalced and adjusted for inflation its gonna generate something like 1 trillion over the course of the next 10 years.<<
Not picking on you, anon, as you did not come up with this comparison.
I just love how numbers get multiplied up in order to make the amount seem more significant. 100Billion a year isn't enough anymore to get people excited, so they say 1Trillion over 10 years! Heck, why not say 10 Trillion over the next century?
that 1 trillion over ten years is really only 8 billion a month.
"Without exception the key question I am asked at an interview is HOW SOON CAN YOU BE HERE. As a renter I can answer in 30 to 60 days."
OH, thank you! Thank you!
You wouldn't believe how many people disagree with you and me on this matter. I've been telling lots of homedebtors that moving is the essence of being marketable nowadays and that one can buy a fine retirement home for under $140K in a place like Buffalo NY while renting all over the country depending upon the local job markets.
The problem is that too many homeowners in bubblezones like Boston, DC, and SF think that they can downsize (i.e. sell and move to Portland, Maine) in 20 years but the problem is that a sizable chunk of the same cohort is planning exactly the same thing which is why many won't have much home equity (if any) for such a play ($500K Boston area home in 2004 which would be the same price, $500K, in 2030 when prices devaluate and finally, re-adjust for inflation).
We can also refer to mortgage as "feudal contract" from now on.
"$500K Boston area home in 2004 which would be the same price, $500K, in 2030 when prices devaluate and finally, re-adjust for inflation"
With 10% down, that's $3K per month (not including fees, maint, & taxes) for a 25 yr/6% mortgage which amortizes to paying around $450K in interest alone over that same period of time. What a collosal waste of money!
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