Aces High Bulletin Board
General Forums => The O' Club => Topic started by: Sabre on August 21, 2012, 12:28:38 PM
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http://www.ino.com/blog/2012/08/big-changes-ahead-gold-just-became-money-again/
Two important points to note in this article:
1) If adopted, U.S. banks would be required to increase their Tier I (i.e. low-risk) asset percentage from 4% to 6%; under pre-Basil III rules, that meant cash holdings. Which leads us to item two...
2) This statement: At the top of the proposed changes is the new list of “zero-percent risk weighted items,” which now includes “gold bullion,” right after “cash.”
Basically, this put gold bullion on a par with cash, from the bank holdings perspective, which will almost surely result in a significant increase in demand, and coincidentily in price. Interesting...
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what dose this mean?
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what dose this mean?
It means the currency system is going to collapse and just be worthless paper, so you best be stocking up on precious metals and other things of stable and real value. :noid
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what dose this mean?
As I note in my last line above, this could very well restart a bull market in precious metals (PM); gold, primarily, but other precious metals would also most assuridly rise in value as well. I don't make a habit of giving investment advise (I'm just a simple country music singer, after all), but adding some PM to your portfolio is something worth considering. Also, this is a step closer to a return to the gold standard, which some believe is the only hope to avert (or at least survive) a world-wide financial collapse :noid. Just found it interesting, and thought I'd see who else did, too.
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Eventually, someone will be buying a loaf of bread with a gold bar.
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Be careful of gold, in the late 70's to the early 80s gold was high then it crashed. It has experienced a strong run over the past years and may be already overvalued. Also, be very leery of the doomsday hype, the fact of the matter is today, the dollar has higher demand than all the other major 1st world currencies despite all the printing, etc.... as despite our problems we are in better financial shape than the Euro zone. Remember, politicians & experts (who often work at institutes with political bents) have a vested interest in disseminating fear.
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Be careful of gold, in the late 70's to the early 80s gold was high then it crashed. It has experienced a strong run over the past years and may be already overvalued. Also, be very leery of the doomsday hype, the fact of the matter is today, the dollar has higher demand than all the other major 1st world currencies despite all the printing, etc.... as despite our problems we are in better financial shape than the Euro zone. Remember, politicians & experts (who often work at institutes with political bents) have a vested interest in disseminating fear.
This.
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http://www.gold-eagle.com/editorials_04/willis112804.html (http://www.gold-eagle.com/editorials_04/willis112804.html)
Careful of this as well! :noid
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http://www.gold-eagle.com/editorials_04/willis112804.html (http://www.gold-eagle.com/editorials_04/willis112804.html)
Careful of this as well! :noid
They aint gettin my 10k gold grill dawg!!
Seems to me everytime the econmy is set on a "boom" item it always busts, gold, dot-coms, housing and what have you. Wanna stable economy have a good supply and demand and make sure you keep your money local if your buying from over seas your paying those guys to buy stuff and they sure arent going to by the products you make.
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It means the currency system is going to collapse and just be worthless paper, so you best be stocking up on precious metals and other things of stable and real value. :noid
banks wont buy more gold than what they need. they make more money lending it at 20% rate than holding gold bullion in their vaults. they will only hold the minimum that is required by law.
looking at the story is good news for brokers. they can instigate panic and make a fortune selling or buying at whatever price. it dont matter to them as they make money either way. all they got is another incentive kind of like the price of oil. the price of oil is more related to speculation that to how much is used. they gonna scare people now into thinking they should hold all their money in metals.
semp
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Okay,so everything is right on time.
Get your beans and bullets people!!
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banks wont buy more gold than what they need. they make more money lending it at 20% rate than holding gold bullion in their vaults. they will only hold the minimum that is required by law.
looking at the story is good news for brokers. they can instigate panic and make a fortune selling or buying at whatever price. it dont matter to them as they make money either way. all they got is another incentive kind of like the price of oil. the price of oil is more related to speculation that to how much is used. they gonna scare people now into thinking they should hold all their money in metals.
semp
Actually, an even bigger impact on the price of oil than speculation is the value of the dollar. Most all commodities are traded internationally in US dollars (USD), though demand and speculation certainly does play a part. One reason I believe the price of gold is so historically high is because of the devaluation of fiat currencies in general, and the USD in particular. Remember we've recently had two rounds of quantitative easing, bank-eeze for purposeful devaluation of the dollar through over-printing of said currency. This was supposed to inject capital into the market place, making it easier to lend, and hopefully stimulating the economy, but it also increases inflation (including the price of gold). Combine those factors with a lack of confidence in Europe's and America's phantom recoveries, and people are putting more of their liquidity into precious metals; this is not to make money, but rather to preserve it, should further inflation or financial crisis occur.
Because my sense is that things will get much worse before they get better, I expect gold to continue to rise in the near future. Yes, it eventually will fall again, but I don't see it happening soon. My opinion, but there you have it. Regarding the risk of confiscation, yes, that is a possibility. While I see that as remote, the hedge against it is to not collect bullion, but rather to invest in semi-numismatic gold and silver coins. These types of coins were not confiscated by FDR (no guarantee it won't happen, but worth noting), but more important, sales of them are not reported to the IRS, making it easier to hide or send overseas to store, if you so desire. The downside is you pay more than spot price when you buy this way, so it's something you have to consider before purchasing.
Regarding Nathan60's comment, it's true that banks won't likely buy more than they need, but remember: they must keep 4 - 6% of their tier I assets in-house; they can't lend it at any percentage (and no one is ending at close to 20% right now, accept for credit cards and loan sharks; look at home mortgage rates). So, if a bank MUST keep 4% or 6% of their total assets in cash or gold, prudence says that at least some be kept in a form that can counter-act hyper-inflation or collapse of a major currency. Maybe not all of it, but at least some. The new rules being proposed would allow US banks to do so, and that means higher demand.
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Gold cannot work as a currency in a modern economy. There simply isn't enough of it and it will constrain the economy.
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^agreed...return to a gold note. I think whiskey and food will be more valuable than money.
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Be careful of gold, in the late 70's to the early 80s gold was high then it crashed. It has experienced a strong run over the past years and may be already overvalued. Also, be very leery of the doomsday hype, the fact of the matter is today, the dollar has higher demand than all the other major 1st world currencies despite all the printing, etc.... as despite our problems we are in better financial shape than the Euro zone. Remember, politicians & experts (who often work at institutes with political bents) have a vested interest in disseminating fear.
it's not actually over valued. in fact, technically speaking, the price of gold hasn't gone up, but rather the value of a dollar has gone down the sewer. this means it takes more of them to buy that gold.
in the end, the result is the same, but the path to get to that result is different.
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it's not actually over valued. in fact, technically speaking, the price of gold hasn't gone up, but rather the value of a dollar has gone down the sewer. this means it takes more of them to buy that gold.
in the end, the result is the same, but the path to get to that result is different.
Exactly right! "Quantitative Easing".. Intentional devaluation of the Dollar.. This is how they suck the life right out of an economy!
Like an invisible tax..
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Exactly right! "Quantitative Easing".. Intentional devaluation of the Dollar.. This is how they suck the life right out of an economy!
Like an invisible tax..
correct....but we can all beat them at that game.
ever have somone come into your workplace and say "i dunno if i can afford that right now, with the economy the way it is and all."? well, guess what? THEY are the economy. them, you, me.....WE are the economy. if everyone stops saying "the economy this" or the economy that, and purchases that tv, or car, or lawn tractor.....whelp.....things will roll along nicely.
that said, if things did go to poop as far as paper money goes.......then there is/will be something much more valuable than gold. skills.
the funny thing is, that if i need/want to buy something for me.....i him and haw over it for awhile. hell......i himed and hawed for nearly 6 months before buying my gt. ask golfer. i think i was makin' the poor guy nuts, loilol. yet when i want/need to buy something for my shop......i plunk the money down at the blink of an eye.
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Big fuss about nothing if ya ask me. If things get that bad I'll just barter for things like they did in the old days. What I can't barter for, I'll just have to do without....simple as that.
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Big fuss about nothing if ya ask me. If things get that bad I'll just barter for things like they did in the old days. What I can't barter for, I'll just have to do without....simple as that.
that's what i was talking about when i said "skills". there's always gonna be bartering. it still goes on today.
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correct....but we can all beat them at that game.
ever have somone come into your workplace and say "i dunno if i can afford that right now, with the economy the way it is and all."? well, guess what? THEY are the economy. them, you, me.....WE are the economy. if everyone stops saying "the economy this" or the economy that, and purchases that tv, or car, or lawn tractor.....whelp.....things will roll along nicely.
that said, if things did go to poop as far as paper money goes.......then there is/will be something much more valuable than gold. skills.
the funny thing is, that if i need/want to buy something for me.....i him and haw over it for awhile. hell......i himed and hawed for nearly 6 months before buying my gt. ask golfer. i think i was makin' the poor guy nuts, loilol. yet when i want/need to buy something for my shop......i plunk the money down at the blink of an eye.
Somebody said.. "If you are falling off a cliff, you might as well try to fly!"
No thanks, big trouble is comin, I don't want my posterior hangin out too far right now..
Carrying very little debt, almost none.. Stashing away everything I can..
Not just PM.. All of it, Beans Bandages Bullets and Bucks.. Solar power, water purification..
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yeah that is bad advice. it should be "sell sell sell!" not "spend spend spend!"
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yeah that is bad advice. it should be "sell sell sell!" not "spend spend spend!"
Let me know when all of you plan on selling... I'll buy buy buy....
Despite the high unemployment rate, companies are sitting on tons of cash (and sitting on cash is a poor way to add shareholder value), direct foreign investment into the USA is higher than it has been in a while and it maybe a while before we get a nice discount on assets again. Seriously, don't be fooled, times are not be great, but the sky is far from falling.
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yeah that is bad advice. it should be "sell sell sell!" not "spend spend spend!"
well, in order for you to sell, someone has to spend, right?
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Let me know when all of you plan on selling... I'll buy buy buy....
Despite the high unemployment rate, companies are sitting on tons of cash (and sitting on cash is a poor way to add shareholder value), direct foreign investment into the USA is higher than it has been in a while and it maybe a while before we get a nice discount on assets again. Seriously, don't be fooled, times are not be great, but the sky is far from falling.
this last line which i bolded......THAT is my point. people listen to the news talking heads. those talking heads have them convinced that the sky is indeed falling, and that it is being caused by a big evil cloud called the economy. nearly EVERYONE fails to realize that THEY are the economy.
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by "sell" I mean sell your labour, dont sit on your arse. or if you run a business grow (sell more!), and preferably export. credit is cheap at the moment so borrow to invest, not to consume.
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by "sell" I mean sell your labour, dont sit on your arse. or if you run a business grow (sell more!), and preferably export. credit is cheap at the moment so borrow to invest, not to consume.
aahh.....
i spend my days trying to grow my shop. i'd like to have a full time tech by christmas, and mechanic by my birthday next year.
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it's not actually over valued. in fact, technically speaking, the price of gold hasn't gone up, but rather the value of a dollar has gone down the sewer. this means it takes more of them to buy that gold.
Gold is a free floating commodity... Its demand drives the price, not the value of the dollar. Don't fail to forget that the rest of the world can also purchase gold, so no gold will go up in price as world demand increases it. And as the much of the world is in far worse economic situation, they have turned to gold to protect their assets, (driving up the price). Yes the dollar has lost value but no where near the rate at which gold has climbed.
Ultimately, what you think the price should be is your opinion, not fact. And if you are willing to find someone who thinks its worth more, then good for you and sell it to them, if not, your stuck holding the bag....
EDIT:
by "sell" I mean sell your labour, dont sit on your arse. or if you run a business grow (sell more!), and preferably export. credit is cheap at the moment so borrow to invest, not to consume.
I agree, now is the time to hire the good employees before the get sucked up by another biz.... (and possibly on a discount).
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What are the elites doing??? What are the high ranking govt employees doing???
They have been hiring contractors to build hidden fortresses in the middle of nowhere..
All of them not provided a govt bunker, are getting ready to :bolt:
These people have the inside track on the program, and time is getting short..
I wish it wasn't so, but this is no BS, stone cold fact..
This is a huge sign.. Just like the Japanese embassy being ordered to burn their
code books, classified material, and destroy their cipher machine...
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i spend my days trying to grow my shop. i'd like to have a full time tech by christmas, and mechanic by my birthday next year.
^ this is what drives economies, good on ya :aok
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I agree, now is the time to hire the good employees before the get sucked up by another biz.... (and possibly on a discount).
definitely, we made a decision to expand into the recession a few years back and have been scooping up great staff from businesses that havent survived it. the bust part of the business cycle really sorts the men from the boys, the cowboys cant weather it.
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^ this is what drives economies, good on ya :aok
thanks. i had a part time guy, that was working out pretty well. he had a lil bit of an attitude, but kept it hidden from my customers. if he'd not have already found full time work, i'd say he'd have been full time by the end of this month. i know where he went though, and i have a good idea of what they offered him, and there's no way in hell i was in a position to try to match them.
i've got a possibility, but this guy lives in deleware(it's about an hour or so drive from my shop), and he'd have to start of part time again. not sure yet. trying to find someone slightly more qualified, and closer to here........BUT.....that other part i mentioned....about people being willing to spend their money.....that directly effects my ability/need to hire someone.
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if I were a gucci shop doing expensive custom jobs I'd be worried, but people need working cars and less people buying new should mean you'll be ok :)
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if I were a gucci shop doing expensive custom jobs I'd be worried, but people need working cars and less people buying new should mean you'll be ok :)
i think i will too. right now, it's a tad slow....but i've got time to clean up a bit, catch up on those "headache" jobs, etc.
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Somebody said.. "If you are falling off a cliff, you might as well try to fly!"
No thanks, big trouble is comin, I don't want my posterior hangin out too far right now..
Carrying very little debt, almost none.. Stashing away everything I can..
Not just PM.. All of it, Beans Bandages Bullets and Bucks.. Solar power, water purification..
Funny you are preparing for collapse of the economy but have no debt. If I thought the same way I would buy everything with a credit card. After all in economic collapse first thing to go is credit. cash would have more value at the beginning of collapse than credit cards.
semp
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Funny you are preparing for collapse of the economy but have no debt. If I thought the same way I would buy everything with a credit card. After all in economic collapse first thing to go is credit. cash would have more value at the beginning of collapse than credit cards.
semp
Beware of a politician who promises to make you a millionaire. Inflation is a surefire way to do just that :cool:
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As I note in my last line above, this could very well restart a bull market in precious metals (PM); gold, primarily, but other precious metals would also most assuridly rise in value as well. I don't make a habit of giving investment advise (I'm just a simple country music singer, after all), but adding some PM to your portfolio is something worth considering. Also, this is a step closer to a return to the gold standard, which some believe is the only hope to avert (or at least survive) a world-wide financial collapse :noid. Just found it interesting, and thought I'd see who else did, too.
The fact that you use the word Portfolio indicates that you are aware of finacial jargon.
I have worked for past 20 in a archive for a bank which is at present being investigated for crimminal activities :)
I don't mean to be rude, I am the daftest person i know, the banking system is not going to collapse and the little man on the street is not going have gold under the bed.
The world is not going to turn into "Escape from Newyork"
Little men get jobs pay the bills and get by, they are either stupid and buy lottery tickets or sqaunder thier money on big house or fat cars .
When credit goes pair shaped (because of the 30 year morgage scam) they look for big reasons why.
Investments are nonsense for normal working people :old:
Collapse is nonsense its economic reality time now, daft people cannot have money on cheap credit anymore.
Buy a antique clock it tells the time and keeps its value and dont keep your money in a bank, when they look into my finances i will tell them i have spent it on beer :rofl
By the way I have a 18th century snuff box if anyone is looking to off load thier paper money no cheques please :rofl :rofl
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Funny you are preparing for collapse of the economy but have no debt. If I thought the same way I would buy everything with a credit card. After all in economic collapse first thing to go is credit. cash would have more value at the beginning of collapse than credit cards.
semp
So, Max your cards and then ditch it all huh??? Not an option for me, I have too much stuff
that can be grabbed by property siezure..
For me, being out of debt, means no one has any financial strings or constraints upon me..
Meaning I don't have to look over my shoulder..
(I'm not the John Corzine type that gets a pass on 200million.. Or was it Billion?)
Some people don't pay attn.. But just in case you didn't notice, due to new laws passed in
the recent "Financial reform", Judges are ordering asset seizure, issuing arrest warrants for debt
default now.. Cities are charging outrageous fines, or evicting people from their land for trivial code violations..
It is happening in my own area..
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So, Max your cards and then ditch it all huh??? Not an option for me, I have too much stuff
that can be grabbed by property siezure..
For me, being out of debt, means no one has any financial strings or constraints upon me..
Meaning I don't have to look over my shoulder..
(I'm not the John Corzine type that gets a pass on 200million.. Or was it Billion?)
Some people don't pay attn.. But just in case you didn't notice, due to new laws passed in
the recent "Financial reform", Judges are ordering asset seizure, issuing arrest warrants for debt
default now.. Cities are charging outrageous fines, or evicting people from their land for trivial code violations..
It is happening in my own area..
last line.....there has always been eminent domain though. there was a big muss n fuss about a privatly owned seafood place along timber creek here in south jersey. the town they were in took it from them with eminent domain, 'cause it better served the public by letting them put up condos......i think that's what they put up anyway.
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last line.....there has always been eminent domain though. there was a big muss n fuss about a privatly owned seafood place along timber creek here in south jersey. the town they were in took it from them with eminent domain, 'cause it better served the public by letting them put up condos......i think that's what they put up anyway.
Rgr that CAP, happenin all over! But the causes are becoming trivial..
Many cases of outright Govt Fraud.. Gettin scary out here next to the
wilderness, with the whole Agenda 21 thing going on..
And I grasp what you are saying about building a Business.. I was there
long ago, but that time of Acquisition and Growth has passed for me..
I am now in preservation mode..
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Knowledge of brewing? Check
Knowledge of distillation? Check
I think that I will have all the currency that I need if the economy collapses. :aok
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WELL, If i platy my cards right, i should be able to build this well enough to pay off my car in less than 3 years, and hopefully pay off my mortgage in less than 10. then i'll be just old enough to enjoy the money i make. hopefully
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The fact that you use the word Portfolio indicates that you are aware of finacial jargon.
I have worked for past 20 in a archive for a bank which is at present being investigated for crimminal activities :)
I don't mean to be rude, I am the daftest person i know, the banking system is not going to collapse and the little man on the street is not going have gold under the bed.
The world is not going to turn into "Escape from Newyork"
Little men get jobs pay the bills and get by, they are either stupid and buy lottery tickets or sqaunder thier money on big house or fat cars .
When credit goes pair shaped (because of the 30 year morgage scam) they look for big reasons why.
Investments are nonsense for normal working people :old:
Collapse is nonsense its economic reality time now, daft people cannot have money on cheap credit anymore.
No rudeness perceived, Zack. :). However, and to quote Yoda, "Only the Sith deal in absolutes." While I don't believe it likely that the a complete collapse of society is immenent, I do believe it highly probable the worst of the financial storms battering the world economy are yet to come. The economy here and in Europe is so fragile, and the systemic problems of excess public dept is already causing some pretty extreme conditions, as demonstrated so graphically in Greece. The "it can't happen here" attitude doesn't change facts. The only thing that has saved the US economy from more overt distress is the fact that the US dollar is the world reserve currency. The Basil III rules could easily be viewed as a preliminary move to lesson reliance on the USD, with the eventual goal of replacing it. So many different things could provide the sudden shock that would send stocks tumbling, collapse major financial institutions, send interest rates and inflation soaring... So it is only prudent to diversify where practical. I would never advocate putting all one's money into one asset class (PM, for example), but hedging your bet is always prudent, and you don't have to be rich to do so.
I also disagree with your comment that, "Investments are nonsense for normal working people," though perhaps you were joking. An IRA or 401K are investments, are they not? And investments don't have to take the form of stocks, bonds, or even PM. How about slowly building up a year's worth of food as both insurance against short-term disruptions as well as long-term hyper-inflation or even unemployment? This doesn't take a huge initial investment, and even with the (under estimated) inflation rate of today, it pays way better dividends than most other "investments".
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Gold cannot work as a currency in a modern economy. There simply isn't enough of it and it will constrain the economy.
Paper is plentiful and has value if it has the right ink on it. :lol
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Paper is plentiful and has value if it has the right ink on it. :lol
Tell that to the German people, following WWI... :neener:
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Tell that to the German people, following WWI... :neener:
Exactly lol
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as long as someone is willing to accept your money in trade for a service, or product, money will have some sort of value. when money fails, then trade service for product, product for product, service for service, etc.
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I saved up and payed cash for my house and car :old:
Credit :rofl
You can have what you want but you cant have what you need :rofl
The fact that people are allowed to buy a car when they dont have the money is the problem :rofl
When I drop dead they will have sore eyes looking for my money :rofl
So when is paper money poo?
As Sabre stated the deppression has not arrived yet :rofl
It happend in the 1670's 1790's 1920's 1970's its historical fact people are greedy stupid and think they can make easy money, buying a house as a investment could not carry on :rofl
I bought a house in the 80's for £20k four years later it was worth £60k :rofl
It was nonsene it could not last, Chrysler remorgaged all its property for trillions :rofl
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Knowledge of brewing? Check
Knowledge of distillation? Check
I think that I will have all the currency that I need if the economy collapses. :aok
MMMM...think I'm going to drag my old still out of storage.
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Eventually, someone will be buying a loaf of bread with a gold bar.
Eventually??? Heck I'll trade you TWO loaves of bread for a gold bar. I'll even throw in a toaster just to be nice.
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So when is paper money poo?
Paper currency isn't money. It's a receipt for money.
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Isn't Canada trying to introduce all digital or card currency right now?
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Any time I run into 'the sky is falling' routine .. I have to wonder.
A fortress is only as good as the men in it.
How many rounds *is* enough?
Can you make your own brass, powder, primer,
..repair-replace?
Granted ..even if 'civilization' completely collapsed ..there will be guns for our lifetimes.
Even if you simplify .. a bow .. can you make a good one?
Arrows? Fletching? ..and someone will have a gun even decades after a major collapse.
I'm thinkin a good, simple double barrel 12 guage, a decent bolt action scoped 30-06, and perhaps a coupla revolvers.
Low tech, low maintenance, very reliable.
Can store them longer than you will be alive and they will still work fine when needed.
Save the planet ..hah
.. I'd settle for bein able to grow my own and having friends to rely on.
'save me from bloody men' as the parable goes.
Frank aka GE
-just sayin (tm Pasha)
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Paper currency isn't money. It's a receipt for money.
It used to be when we were on the gold standard. It's just paper now.
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Paper currency isn't money. It's a receipt for money.
wrong, paper currency is one form of money.
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The UK has not been has not been on the gold standard for years :)
In the near future a £1 will be worth a £1
And $1 will be worth $1
I knew people who had been in prison who could get credit for a car and drove around with no insurance and road tax, they were bullett proof, they were not bother about going back to jail or paying the car off.
The car companies were not bother because they had made a sale, the credit companies were not bothered because they were investing the money in portfolios, the investment companies were using peoples savings and pension schemes to fund it all. (now these pensions funds are bankrupt) :rofl
Insurance has gone up in the UK and people are complaining, they did not realise that the money they gave the Insurance companies was put into investment companies (thats how the made a profit) :rofl now the markets are plop they have to charge the customer a realistic quote. :rofl
RT and Yarbles are to blame they work in the city, stone them :rofl (My money is under my bed RT you can't have it :rofl)
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hey dont blame me! I work in a village, not the city :D
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Village people :rofl
What should I invest in RT? :old:
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good question, depends entirely on your situation. if I had extra income to invest where I live I'd be snapping up and converting properties to let. nothing (legal) touches the yield. do what my asian mate and his family do - put in a stupid offer (25-30% off asking price) on every suitable property that comes up and eventually someone will be desparate enough to take it. then fill it with students and move on to the next one.
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good question, depends entirely on your situation. if I had extra income to invest where I live I'd be snapping up and converting properties to let. nothing (legal) touches the yield. do what my asian mate and his family do - put in a stupid offer (25-30% off asking price) on every suitable property that comes up and eventually someone will be desparate enough to take it. then fill it with students and move on to the next one.
As RTHolmes stated, real estate is entirely dependent on where you live and what you plan on doing with it. If you are looking to rent it out what you need to look at is the vacancy rates and the ratio between the cost and the rental income, some places have a favorable ratio, others don't.
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good question, depends entirely on your situation. if I had extra income to invest where I live I'd be snapping up and converting properties to let. nothing (legal) touches the yield. do what my asian mate and his family do - put in a stupid offer (25-30% off asking price) on every suitable property that comes up and eventually someone will be desparate enough to take it. then fill it with students and move on to the next one.
i was thinking of that around here. there's a hud owned house about 2 blocks from me, that i feel i could grab pretty cheap right now, and then go through a real estate agent, and have it rented out for at least enought o cover the mortgage and taxes.......
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Even if it only covers 50% of the mortgage and 100% of the taxes it is still better than most investments today, but only if housing prices are stable.
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Even if it only covers 50% of the mortgage and 100% of the taxes it is still better than most investments today, but only if housing prices are stable.
It is very location dependent. IE, if the property costs 800k and you can only rent it for $2000, you are betting on a very strong housing recovery. It really depends on what that 50% is and how long you can lose money on it before you sell.
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sorry.....this is assuming that the house like a stock option would be purchased 100% up front. If you can not do this I would not get into it. It can be very risky. A safer option would be getting into tax liens. Very little money up front and depending on where you live you can get any where from 10% to 25% (maybe higher) return on your money. If the owner of the property defaults and does not pay you back + the interest and your costs (IE.. legal filings and misc expenses) you ultimately end up owning the property for a penny on the dollar. If you live in a small town you might end up dead so I would recommend doing it in another state as you can do this all via city web sites in any state in the US from where you live.
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there's no way i could purchase it entirely up front....unless they let it go for a bit under 50k, which i doubt they will. in my area, house prices are inthe pooper right now. they've only got a little more ways to go, then they're gonna do just like they always do, and go back up. at least that's what i think.
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sorry.....this is assuming that the house like a stock option would be purchased 100% up front. If you can not do this I would not get into it. It can be very risky. A safer option would be getting into tax liens. Very little money up front and depending on where you live you can get any where from 10% to 25% (maybe higher) return on your money. If the owner of the property defaults and does not pay you back + the interest and your costs (IE.. legal filings and misc expenses) you ultimately end up owning the property for a penny on the dollar. If you live in a small town you might end up dead so I would recommend doing it in another state as you can do this all via city web sites in any state in the US from where you live.
Ahh, I see. Yeah, another option, and I'm surprised it has not been mentioned, is REITs. They don't require nearly the same amount of capital, yet still enabling people to take advantage of collapse of real estate values. Furthermore, they are required by law to redistribute 90% earnings to unit holders. The only challenge is depending on what REIT invest and how much, you may be required to file a tax return in all the states they do biz in.
unless they let it go for a bit under 50k, which i doubt they will.
Houses in NJ have gotten that low? or are you referring to more section 8/'slum lord' type of investments?
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there's no way i could purchase it entirely up front....unless they let it go for a bit under 50k, which i doubt they will. in my area, house prices are inthe pooper right now. they've only got a little more ways to go, then they're gonna do just like they always do, and go back up. at least that's what i think.
The price of houses will fall, the investment potential of property is finished unless you can buy property outright, and people are becoming unemployed and cannot buy property. (market forces dictate prices)
Renting is the same you can only charge people what they can afford and if everybody wages are dropping so is your rent.
Narrow boats in the UK don't loose their value by the way :)
The fact that normal working class people talk about investments and finance is hilarious, in ten years time it will a distant memory this investment for masses nonsense. :rofl
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The price of houses will fall, the investment potential of property is finished unless you can buy property outright, and people are becoming unemployed and cannot buy property. (market forces dictate prices)
Renting is the same you can only charge people what they can afford and if everybody wages are dropping so is your rent.
Narrow boats in the UK don't loose their value by the way :)
The fact that normal working class people talk about investments and finance is hilarious, in ten years time it will a distant memory this investment for masses nonsense. :rofl
I Hate it, but I think you are correct..
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I have worked for past 20 in a archive for a bank which is at present being investigated for crimminal activities :)
ahh so you are partly responsible for manipulating LIBOR? :rofl
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More from the deluded Ayn L Rand libertarian dreamers.
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"Your investment may go up or down" :rofl
They even tell you that they are poo at finance :rofl
Imagine going to buy a car and they said it might breakdown or might not, you would not buy it :rofl
Libor :rofl
It was theft :rofl
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More from the deluded Ayn L Rand libertarian dreamers.
How about Nigel Farage. Is this guy nuts or is what he says true? Wanna hear from some Brits.
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http://world.hawaiinewsdaily.com/2012/08/jacob-rothschild-john-paulson-and-george-soros-are-all-betting-that-financial-disaster-is-coming/
http://mobile.bloomberg.com/news/2012-08-15/paulson-steps-up-gold-bet-to-44-of-firm-s-equity-assets.html
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Farage,Rand and Zack talk jibberish :rofl
Zack does it for free though :)
I thank you :)
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Isn't Canada trying to introduce all digital or card currency right now?
No! But we are making our money outta plastic so we can save a few trees!
Zack, while I see your point I dont agree,if you own a house then you have an investment so it is for the common man.
The price of gold is directly related to oil! Once certain countries demanded payment in gold instead of USD it was obvious that the price would rise,that way you can buy more barrels pre ounce.
Von,all you need is a green thumb,oh and a good seed bank and your set!!!! :rofl :rofl
:salute
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Houses WERE a good investment when credit was cheap and the financial institutes were being reckless with peoples investment portfolios and pensions funds :)
The big financial concerns are looking at the commons mans assetts and they will take them back, they have tipped over the trough like greedy little piggies and they will find funds where they can.
The man in the street will pay by increases in Pension contribution, Health contributions, Insurance contributions etc, it will and is happening.
When you can't pay your mortgage the Bank gets you house and if you have paid for 20 years you have nothing.
If you own a house and live in it is not a assett they will take it off you when you cannot paid your medical bills :old:
In the UK if your bone idle and claim benefits you pay no taxes your laughing, if you save up for years you cannot claim benefits and if you need long term medical treatment they take you assetss of you, those who have nothing get it paid for. :)
USD and oil is nonesense they can pay you in beans,trees or starfish its assets and controll which dictate wealth, why is it when the US tells Europe to get its house in order they do? (IMO etc) they told Japan to invest in Korea to stabilise it, they screamed blue murder, and the US told them that they would bring in trade tariffs if they did not do it, its control and assetts not money.
The US is trillions in debt and still you have American football and Hershey bars, Drones and Serenity explorers (Control and assetts)
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No! But we are making our money outta plastic so we can save a few trees!
Zack, while I see your point I dont agree,if you own a house then you have an investment so it is for the common man.
The price of gold is directly related to oil! Once certain countries demanded payment in gold instead of USD it was obvious that the price would rise,that way you can buy more barrels pre ounce.
Von,all you need is a green thumb,oh and a good seed bank and your set!!!! :rofl :rofl
:salute
One could only wish, Morf...
That doesn't mean you guys can keep coming here and buy up all the milk at Costco. :D