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9.1% inflation


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2022 Jul 13, 3:14pm   2,218 views  28 comments

by BayArea   ➕follow (1)   💰tip   ignore  

Fuuuuuuuuuuck

Highest since 1981 when mortgage rates were ~15%

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14   clambo   2022 Jul 14, 7:43pm  

I’m retired and I have never expected a CD to pay shit. Banks lend money and make money, they don’t pay money.

There are plenty of things you can do if you had the foresight to buy mutual funds for retirement.
15   Ceffer   2022 Jul 14, 8:11pm  

Do people really believe that bitcoin and cryptos weren't invented with a zipper to empty the purse? You underestimate your Globalist psychopaths. What they are is 'catch the thief' proof, as intended.

"Hey, yeah, we have this really secure COMPUTER SCHEME to invent currency. You know, computers that have always been so bullet proof? And software written by somebody you don't know from Adam just for YOU to keep you and your money REALLY SAFE!"
16   Eman   2022 Jul 14, 8:20pm  

clambo says

I’m retired and I have never expected a CD to pay shit. Banks lend money and make money, they don’t pay money.

There are plenty of things you can do if you had the foresight to buy mutual funds for retirement.

Not quite. Banks are in the business to make money. They lend money to make money. Banks pay savers, let’s say 1% for savings/CD’s, while lend it out at 5% and make 4% spread.

Investors do the same. They borrow bank’s money at 5% and look for investments that yield 10-12%. Hard money lending is one of them. The broker would charge 1-2% for their fee/service and lend investors’ money to flippers and borrowers.

You’re wise for not relying on CD’s. The savers are the ones who get screwed. There’s a price to pay for not taking risks.
17   NDrLoR   2022 Jul 14, 8:38pm  

clambo says

Banks lend money and make money, they don’t pay money
This is what S & L's did until they collapsed with the 80's bank frauds.
18   clambo   2022 Jul 15, 6:54am  

Someone could have bought Vanguard Wellington for a few decades and been okay today, although not too rich since it’s a balanced fund (stocks and bonds).

Then either just live off the quarterly dividends and interest or systematically withdraw it.

I’m considering changing my IRA, SEP, Roth allocations to this kind of fund in a few years.

The problem is taxes on capital gains will rise and I have dough in regular accounts so I will get screwed when I spend my money someday.
20   clambo   2022 Jul 15, 7:28am  

Re: above “millennials caused inflation”; evidently they took stimulus checks to buy cars, and now there are more repos. Today banks evidently own a lot of cars.

I am thinking about buying a used truck and I saw a bunch of stuff about the recent things happening in the car business.
21   Booger   2022 Jul 15, 7:33am  

I don't agree with my above posted article. I was posting it as an example of irresponsible journalism. Also not a millennial.
22   Booger   2022 Jul 15, 7:37am  

clambo says

I am thinking about buying a used truck and I saw a bunch of stuff about the recent things happening in the car business.


Repos are skyrocketing. It's still going to be a while until you see the dealer lots full of vehicles. Most incoming vehicles are already sold, probably through the end of the year. Repos should increase used vehicle inventory though.

I understand that Ram vehicles are already in good supply.
23   casandra   2022 Jul 15, 10:48am  

Buy really good trucks. If inflation takes off, housing prices crash and or banks go broke, you'll still have your TRUCKS!
24   HeadSet   2022 Jul 15, 11:43am  

Eman says

Banks pay savers, let’s say 1% for savings/CD’s, while lend it out at 5% and make 4%

That is what the banks sneeringly call "retail money," and that is a very paltry part of their profits.
25   REpro   2022 Jul 15, 3:42pm  

HeadSet says

Eman says


Banks pay savers, let’s say 1% for savings/CD’s, while lend it out at 5% and make 4%

That is what the banks sneeringly call "retail money," and that is a very paltry part of their profits.


Investors borrow for 5% and invest out at 10% and make 5%
That is what the investors call "other people money," and that is a very paltry part of their profits.
26   Eman   2022 Jul 15, 9:43pm  

casandra says

Buy really good trucks. If inflation takes off, housing prices crash and or banks go broke, you'll still have your TRUCKS!


Pay cash or with a car loan? The truck will get repossessed if there’s a loan on it.
28   WookieMan   2022 Jul 16, 3:40am  

RC2006 says


This go around people that buy gold are spending on getting out of large cities, food, and bullets.

This. Many people now don't physically have to go to work anymore. If I were to have a similar sized property in Chicago in its current condition, in a decent neighborhood, it would be $700k. Out where I'm at it's $250-300k.

I'm close enough that if I still worked in Chicago the drive is bearable if there was say a monthly meeting at the office. There's little need to live in most cities now with white collar jobs. Most the schools are shit, and if a public one is good in your area, you're probably in the 7 figures at this point for housing.

I think the inflation is based on shortages from supply chain issues because of covid and in combination with covid stimulus. Also because international travel is/was a pain with covid, a lot of money stayed stateside for leisure. Besides Patrick right now, myself and maybe one other user (Clambo?), I don't recall anyone traveling internationally on this forum. One person I know when to Portugal and got covid... lol. Otherwise everyone is doing road trips, buying campers and other US stuff.

So more fuel is being used for road trips and domestic flights. Supply chain is whack so the builders of say campers can't get supplies so they raise the prices on the limited supply they have. Same with cars. The pendulum will swing the other way though. We'll see what wages do. Ultimately the already poor will get fucked the most. Though if they learned trade skills they could make bank. Hell just be a general laborer in construction. No one wants to work anymore, adding to the problem.

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