patrick.net

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.

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.

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.

https://www.cnbc.com/2022/07/15/millennials-are-to-blame-for-sky-high-inflation-strategist-says.html

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.

I don't agree with my above posted article. I was posting it as an example of irresponsible journalism. Also not a millennial.

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.

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

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.

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.

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.

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.