Then why keep stacking? If you see that G handouts/spending will reach a saturation point and cease, then the basic argument for PMs becomes moot. >>
The affect of that saturation point on the value of the dollar is why I stack dollar insurance. When money creation no longer works, is is because the money no longer works.
Natural forces of supply and demand are the best regulators on earth.
Then why keep stacking? If you see that G handouts/spending will reach a saturation point and cease, then the basic argument for PMs becomes moot. >>
The affect of that saturation point on the value of the dollar is why I stack dollar insurance. When money creation no longer works, is is because the money no longer works. >>
I predict neither you nor I will be alive to see this. Sorry to us.
Once the HOPE scholarships here in this state starting happening - my senior year basically - costs went up A LOT faster than prior. From my freshman year to graduation, I think tuition went up from about $600/qtr to about $750 over 5 years, not bad. They're on semesters now, over 5 grand per for just tuition. Normal markets wouldn't bounce like that w/o subsidy.
And last I heard the kids are looking at another 10%+ bump for tuition next semester - wifey is current Ed.S/PhD grad student so we feel that hit.
Kids borrowing/spending 80-100+grand to graduate a Dawg, in-state, is absolutely ridiculous. And a lot of them do, because it's easy and fed backed.
Then why keep stacking? If you see that G handouts/spending will reach a saturation point and cease, then the basic argument for PMs becomes moot. >>
The affect of that saturation point on the value of the dollar is why I stack dollar insurance. When money creation no longer works, is is because the money no longer works. >>
I predict neither you nor I will be alive to see this. Sorry to us. >>
Well at least you see it on the distant horizon. That's a very productive start.
Natural forces of supply and demand are the best regulators on earth.
PMs, real estate and equities are all valued higher today than 100 years ago. This trend will continue. I never said otherwise. PMs are just another asset classes with similar risk profiles. Those that did not understand this 2 years ago should understand this now. Unless the basis if their investment decisions is rooted in conspiracy and manipulation theory. In this case there is no "hope".
Inflation/dollar destruction is what makes asset valuation higher than 100, 50, 25, 10 and 5 years ago. Eco 101: when you destroy the value of the currency being used to purchase an asset, it will take more of that currency to purchase the asset. And yes, the trend will continue, not because of economic growth, but because of dollar destruction. And also yes, there is a point where dollar destruction makes it worthless.
Natural forces of supply and demand are the best regulators on earth.
<< <i>Inflation/dollar destruction is what makes asset valuation higher than 100, 50, 25, 10 and 5 years ago. Eco 101: when you destroy the value of the currency being used to purchase an asset, it will take more of that currency to purchase the asset. And yes, the trend will continue, not because of economic growth, but because of dollar destruction. And also yes, there is a point where dollar destruction makes it worthless. >>
Ok. But so what? Dollar destruction means all assets will increase in value, especially those based on human necessity. PMs have virtually zero necessity. A company that can purify water could be priceless.
<< <i>Ok. But so what? Dollar destruction means all assets will increase in value, especially those based on human necessity. PMs have virtually zero necessity. A company that can purify water could be priceless.
PMs are nothing special. >>
Priceless water will be the result of worthless paper money. Real money will buy that priceless water when the dollar will not. That is what makes gold special.
Natural forces of supply and demand are the best regulators on earth.
<< <i>On a side note, the article is pretty racist. >>
Race was not mentioned in the linked opinion piece. Anyone that associates a particular race with what was described may want to reconsider their own level of racism. It may just be stereotyping but unfortunately when it involves race there are those that see it as racism. Same holds true for sexism. >>
Boy are your right..you hit the nail on the head DB
"of the total $178 billion in consumer credit expansion in the past 12 months, a tiny $9 billion, or just 5% of total, was to fund credit card purchases. The rest went - you guessed it - into purchases of cars and paying for tuition, for which GM and strateospheric college tuitions are most grateful. And that is the New Normal economy in a nutshell."
At least with real estate there was a chance of asset appreciation.
Natural forces of supply and demand are the best regulators on earth.
<< <i>I have little doubt there will be an increase in college loan defaults. I also have little doubt that these defaults will leave PM bulls disenchanted. >>
The "new" money needed to cover them can only be a good thang.
Natural forces of supply and demand are the best regulators on earth.
On another note (no pun intended), last night I was reading a current article in the major automobile publication that stated "the number of vehicle loans in the U.S. have surpassed the number of home loans". 84 million vs. 81 million today.
Assuming the average outstanding balance on those vehicle loans is $15k, we have $1.3 trillion in outstanding vehicle loans today. Another all-time record high. ZIRP has boosted car sales almost as much as housing. I am not saying this is good or bad, just that it is...what it is.
<< <i>Ok. But so what? Dollar destruction means all assets will increase in value, especially those based on human necessity. PMs have virtually zero necessity. A company that can purify water could be priceless.
PMs are nothing special. >>
Priceless water will be the result of worthless paper money. Real money will buy that priceless water when the dollar will not. That is what makes gold special. >>
Very good discussion between you to. Thanks for sharing
<< <i>And all those cars are guaranteed to depreciate in value.
So is all that loaned out money thanks to the Fed. So I guess it all evens out. >>
Unlike real estate (where there is a chance of recovering from a bad loan) automobiles will never be worth what is owed on them. They are losers the minute they leave the gate.
Natural forces of supply and demand are the best regulators on earth.
<< <i>And all those cars are guaranteed to depreciate in value.
So is all that loaned out money thanks to the Fed. So I guess it all evens out. >>
Unlike real estate (where there is a chance of recovering from a bad loan) automobiles will never be worth what is owed on them. They are losers the minute they leave the gate. >>
really? I see lots of old cars being auctioned for many multiples of the original sticker price on Barrett Jackson and other venues. It's just a matter of picking the asset, buying and holding, and taking care of the investment over time
once again, what is generally true always has exceptions. even that last sentence!
"But unless colleges plan to offer master's degrees in janitorial studies, they will have to change. They currently have little incentive to do so, as they are often strangled by tenure rules, spoiled by subsides from government and rich alumni, and more interested in trivial things—second-rate research by third-rate scholars; ball-throwing contests—than imparting knowledge. Yet dire financial straits from falling demand for their product will force two types of changes within the next five years."
Natural forces of supply and demand are the best regulators on earth.
Maybe by the time my little girl gets college age (17 more years) the bubble will have popped and tuition will have dropped dramatically at quality schools and our measly college savings fund will cover most if not all of it.
@ Elite CNC Routing & Woodworks on Facebook. Check out my work. Too many positive BST transactions with too many members to list.
"We are in unknown territory, on an economic Star Trek, with Captain Bernanke about to turn the helm over to Captain Yellen, going where no reserve-currency-printing central bank has gone before. This is not Argentina or Zimbabwe we are talking about. The Federal Reserve is setting its course based on economic theories created by people whose models are demonstrably terrible."
Natural forces of supply and demand are the best regulators on earth.
Automobiles are tools and are therefore extremely valuable. The result of a car loan bubble -I do not believe there is one- would be people buying cars they can afford, just as real estate corrected itself. These are all good things.
<< <i>Automobiles are tools and are therefore extremely valuable. The result of a car loan bubble -I do not believe there is one- would be people buying cars they can afford, just as real estate corrected itself. These are all good things. >>
Houses are a necessity and are therefore extremely valuable. That did not prevent a bubble heard around the world. A price bubble is self correcting. A debt bubble. . . we'll we've been to that dance before and it seems that music won't end anytime soon.
Natural forces of supply and demand are the best regulators on earth.
Gosh, complaining about spending on useful automobiles.. next thing you know, the critics will complain that people are spending money on education in the hopes of getting a better job
<< <i>Gosh, complaining about spending on useful automobiles.. next thing you know, the critics will complain that people are spending money on education in the hopes of getting a better job >>
The for profit universities along with the easy student loans has distorted some of the benefits of higher education. I belive that half of the law school graduates in the last five years are not employed in the field. Meanwhile the non performance rate on these loans is 15%. That is $150 billion of the $1 of debt outstanding.
<< <i>Automobiles are tools and are therefore extremely valuable. The result of a car loan bubble -I do not believe there is one- would be people buying cars they can afford, just as real estate corrected itself. These are all good things.
There is certainly a PERSONAL DEBT BUBBLE and auto loans are the largest percentage of that bubble... It is a bubble.. Yes automobiles are a tool.... However the amounts spent and borrowed on them is disproportionate to there value as a tool.. Most persons whom buy autos are not buying them as a "tool".. They are buying the Venti double extra shot with all the fat thank you...on their credit card. There is always the exception to the rule... Just visit a dealership and see who's buying what....
<< <i>Gosh, complaining about spending on useful automobiles.. next thing you know, the critics will complain that people are spending money on education in the hopes of getting a better job >>
The OP is about worthless loans reaching an epidemic level. What they buy is irrelevent, who ends up footing the bill is relevent. Those of us that pay taxes were on the hook the last time a debt bubble popped because it was ignored.
Natural forces of supply and demand are the best regulators on earth.
"Credit card companies, which attract new customers with zero percent teaser rates and more rewards, have raised rates while their costs remain historically low, industry observers say."
Natural forces of supply and demand are the best regulators on earth.
"Credit card companies, which attract new customers with zero percent teaser rates and more rewards, have raised rates while their costs remain historically low, industry observers say." >>
Banks pay zero for the last six years and the libs brag about how the US made money or the bank bailouts. Glad that we can subsidize the $40,000,000 a year Wall Street shysters.
Credit card interest should be high because its unsecured lending but, these banks will be bailed out by the tax payer if anything goes wrong they don't deserve it. Let them forgo their TBTF protection and I'm okay with them charging 50 % . Borrowing money from the Fed at 0% and loaning it out at no risk at 21% is obscene.
"Credit card companies, which attract new customers with zero percent teaser rates and more rewards, have raised rates while their costs remain historically low, industry observers say." >>
If it were not for those obligingly carrying balances and paying those high rates of interest I would not be netting thousands a year in regular 1.5% cash back and bonus cash for just accepting credit cards.
All those freebies for me have to be paid for somehow.
<< <i>Borrowing money from the Fed at 0% and loaning it out at no risk at 21% is obscene. >>
Welcome to 2014 America. Socialism when it is time to bail out the banks, Capitalism when the banks charge usurious rates.
Gilead Science is up a few bucks today on their quarterly earnings. They make a Hepatitis drug which they sell for $1000 a pill. 80 are needed for the "cure". Again, We are Socialists when it time to pay for our neighbors healthcare and free market Capitalists when the $1000 pills hit the market.
"Credit card companies, which attract new customers with zero percent teaser rates and more rewards, have raised rates while their costs remain historically low, industry observers say." >>
If it were not for those obligingly carrying balances and paying those high rates of interest I would not be netting thousands a year in regular 1.5% cash back and bonus cash for just accepting credit cards.
All those freebies for me have to be paid for somehow. >>
I will choose to pay cash every time and skip the rewards. I'm tired of being monetized by these parasites.
The privacy of my purchases is worth more than 1.5%. In any case I don't understand paying an extra 3% for something to get 1.5% back.
"Credit card companies, which attract new customers with zero percent teaser rates and more rewards, have raised rates while their costs remain historically low, industry observers say." >>
If it were not for those obligingly carrying balances and paying those high rates of interest I would not be netting thousands a year in regular 1.5% cash back and bonus cash for just accepting credit cards.
All those freebies for me have to be paid for somehow. >>
I will choose to pay cash every time and skip the rewards. I'm tired of being monetized by these parasites.
The privacy of my purchases is worth more than 1.5%. In any case I don't understand paying an extra 3% for something to get 1.5% back. >>
How would someone pay 3% more than to get 1.5% back?
<< <i>I'm think of coins in particular. Online everyone wants 3% more to do a credit card transaction. I'd send a check or do a wire transfer every time. >>
<< <i>I'm think of coins in particular. Online everyone wants 3% more to do a credit card transaction. I'd send a check or do a wire transfer every time. >>
We can all decide on a case by case basis.
I don't pay 3% more on ebay when I purchase coins. Last week my ebay bullion purchases listed under coins came with a 9.5% discount (8% ebay bucks plus 1.5% credit card)
If someone wants 3% more to pay via a credit card I just pay by check.
The credit card I use for gasoline purchases pays me back 3% or on average $12 per month. It is a simple matter to find gas stations offering the same price for cash or credit. The 11 cents per gallon I save adds up.
My point is that if you play the game wisely the credit card companies pay you instead of you paying them. Last year they paid me just under $3,000.
I will leave it to others to loathe banks - I laugh all the way to the bank.
I'm a cash guy. I'd rather have purchase privacy than getting plugged into all that personal data-sale marketing that is tied to every one of the rewards cards. And paying off 26k in CC debt over some years after a failed business startup, while making jack diddly, has me using my card at a minimum.
My wife is the opposite, she charges everything and gets free plane tix and whatever else. Good for her, but I'd rather not have a 4 figure check to write every month for a few bucks back.
<< <i>I'm think of coins in particular. Online everyone wants 3% more to do a credit card transaction. I'd send a check or do a wire transfer every time. >>
We can all decide on a case by case basis.
I don't pay 3% more on ebay when I purchase coins. Last week my ebay bullion purchases listed under coins came with a 9.5% discount (8% ebay bucks plus 1.5% credit card)
If someone wants 3% more to pay via a credit card I just pay by check.
The credit card I use for gasoline purchases pays me back 3% or on average $12 per month. It is a simple matter to find gas stations offering the same price for cash or credit. The 11 cents per gallon I save adds up.
My point is that if you play the game wisely the credit card companies pay you instead of you paying them. Last year they paid me just under $3,000.
I will leave it to others to loathe banks - I laugh all the way to the bank. >>
Your ebay bucks come out of my seller fees no savings there because when fees go up so do prices. Sellers having to list in non bullion give up their right to refuse to take returns so they probably raise prices for that too.
Gas pumps that sell cash or credit same price do it by sticking it to the cash customers not by lowering the credit price. That 3% is built in everywhere you use a credit card.
If you got $3000 back it means you paid $6000 in fees of which $3000 was a forced 0% loan to the bank.
<< <i>Gas pumps that sell cash or credit same price do it by sticking it to the cash customers not by lowering the credit price. >>
Rarely do gasoline retailers stick it to anyone. The couple of cents per gallon margin is absorbed by the credit card user. They hope that you come in and buy a six of Corona or a few big gulps to earn them a spread.
<< <i>I'm think of coins in particular. Online everyone wants 3% more to do a credit card transaction. I'd send a check or do a wire transfer every time. >>
We can all decide on a case by case basis.
I don't pay 3% more on ebay when I purchase coins. Last week my ebay bullion purchases listed under coins came with a 9.5% discount (8% ebay bucks plus 1.5% credit card)
If someone wants 3% more to pay via a credit card I just pay by check.
The credit card I use for gasoline purchases pays me back 3% or on average $12 per month. It is a simple matter to find gas stations offering the same price for cash or credit. The 11 cents per gallon I save adds up.
My point is that if you play the game wisely the credit card companies pay you instead of you paying them. Last year they paid me just under $3,000.
I will leave it to others to loathe banks - I laugh all the way to the bank. >>
Your ebay bucks come out of my seller fees no savings there because when fees go up so do prices. Sellers having to list in non bullion give up their right to refuse to take returns so they probably raise prices for that too.
Gas pumps that sell cash or credit same price do it by sticking it to the cash customers not by lowering the credit price. That 3% is built in everywhere you use a credit card.
If you got $3000 back it means you paid $6000 in fees of which $3000 was a forced 0% loan to the bank.
>>
You seem intent on demonstrating (seemingly to yourself) that those shrewdly taking advantage of credit card perks are not actually profiting.
Getting 9.5% cash back via ebay (8% ebay bucks + 1.5% CC cashback) when paying 3-4% over spot for modern gold commemorative coins lets me buy gold for about 5% under spot. I am hard pressed to find a downside when I can buy gold coins below spot. The fact that ebay bucks come out of seller fees makes the plight of ebay sellers more pitiable but does not effect me. Ditto for those paying cash for gasoline who in your mind should be getting a discount. My AAA credit card has never cost me a cent and I net about $120 per year on gasoline purchase rebates plus get $50 bonus certificates for every $5,000 in gasoline purchases to apply to my annual AAA membership.
I did get $3,000 last year from credit card companies as cash back and/or bonuses for just accepting their cards. Like I said I paid NO interest or other fees to credit card companies in 2013. What new math did you use to conclude I somehow paid $6,000 in fees to credit card companies?
"It’s how a state, any state, can turn worthless pieces of paper into valued currency." >>
A dollar bill or a silver coin or an electronic dollar is just a receipt for a bit of work, stored in a form that can be transported and exchanged.
the fact that some people and systems (like machines and businesses) earn more of them than others, or choose different uses to put those stored units to, is immaterial to the units themselves; they're all currency with assorted liquidity and exchange rates. Pick your horses and let the cards fall where they may, each of us has 24 hours per day
<< <i>A dollar bill or a silver coin or an electronic dollar is just a receipt for a bit of work, stored in a form that can be transported and exchanged. >>
Baley, you are correct about the first and the third.
<< <i>A dollar bill or a silver coin or an electronic dollar is just a receipt for a bit of work, stored in a form that can be transported and exchanged. >>
Baley, you are correct about the first and the third. >>
And the reson the second one has it's value is completely different from why the other two have value.
Natural forces of supply and demand are the best regulators on earth.
A dollar bill or a silver coin or an electronic dollar is just a receipt for a bit of work, stored in a form that can be transported and exchanged.
the fact that some people and systems (like machines and businesses) earn more of them than others, or choose different uses to put those stored units to, is immaterial to the units themselves; they're all currency with assorted liquidity and exchange rates. Pick your horses and let the cards fall where they may, each of us has 24 hours per day
Good observation, Baley. I was beginning to think that you didn't have it in ya.
Still, a silver coin has a significantly longer history in performing the function, based on the trust thingy. I've picked my horse.
Q: Are You Printing Money? Bernanke: Not Literally
Comments
<< <i>Stackers see that saturation on the horizon
Then why keep stacking? If you see that G handouts/spending will reach a saturation point and cease, then the basic argument for PMs becomes moot. >>
The affect of that saturation point on the value of the dollar is why I stack dollar insurance. When money creation no longer works, is is because the money no longer works.
Natural forces of supply and demand are the best regulators on earth.
<< <i>
<< <i>Stackers see that saturation on the horizon
Then why keep stacking? If you see that G handouts/spending will reach a saturation point and cease, then the basic argument for PMs becomes moot. >>
The affect of that saturation point on the value of the dollar is why I stack dollar insurance. When money creation no longer works, is is because the money no longer works. >>
I predict neither you nor I will be alive to see this. Sorry to us.
Knowledge is the enemy of fear
When I graduated my yearly costs were ~6 grand for tuition/books/housing/meals. Under 20 years ago, more than tripled today (almost quadrupled):
https://admissions.uga.edu/article/tuition-and-costs-of-attending.html
Once the HOPE scholarships here in this state starting happening - my senior year basically - costs went up A LOT faster than prior. From my freshman year to graduation, I think tuition went up from about $600/qtr to about $750 over 5 years, not bad. They're on semesters now, over 5 grand per for just tuition. Normal markets wouldn't bounce like that w/o subsidy.
And last I heard the kids are looking at another 10%+ bump for tuition next semester - wifey is current Ed.S/PhD grad student so we feel that hit.
Kids borrowing/spending 80-100+grand to graduate a Dawg, in-state, is absolutely ridiculous. And a lot of them do, because it's easy and fed backed.
<< <i>
<< <i>
<< <i>Stackers see that saturation on the horizon
Then why keep stacking? If you see that G handouts/spending will reach a saturation point and cease, then the basic argument for PMs becomes moot. >>
The affect of that saturation point on the value of the dollar is why I stack dollar insurance. When money creation no longer works, is is because the money no longer works. >>
I predict neither you nor I will be alive to see this. Sorry to us. >>
Well at least you see it on the distant horizon. That's a very productive start.
Natural forces of supply and demand are the best regulators on earth.
PMs, real estate and equities are all valued higher today than 100 years ago. This trend will continue. I never said otherwise. PMs are just another asset classes with similar risk profiles. Those that did not understand this 2 years ago should understand this now. Unless the basis if their investment decisions is rooted in conspiracy and manipulation theory. In this case there is no "hope".
Knowledge is the enemy of fear
Natural forces of supply and demand are the best regulators on earth.
<< <i>Inflation/dollar destruction is what makes asset valuation higher than 100, 50, 25, 10 and 5 years ago. Eco 101: when you destroy the value of the currency being used to purchase an asset, it will take more of that currency to purchase the asset. And yes, the trend will continue, not because of economic growth, but because of dollar destruction. And also yes, there is a point where dollar destruction makes it worthless. >>
Ok. But so what? Dollar destruction means all assets will increase in value, especially those based on human necessity. PMs have virtually zero necessity. A company that can purify water could be priceless.
PMs are nothing special.
Knowledge is the enemy of fear
<< <i>Ok. But so what? Dollar destruction means all assets will increase in value, especially those based on human necessity. PMs have virtually zero necessity. A company that can purify water could be priceless.
PMs are nothing special. >>
Priceless water will be the result of worthless paper money. Real money will buy that priceless water when the dollar will not. That is what makes gold special.
Natural forces of supply and demand are the best regulators on earth.
<< <i>
<< <i>harsh and over the top, but there's some real truth in there >>
<< <i>On a side note, the article is pretty racist. >>
Harsh yes, not sure about over the top - seems quite realistic to me.
Racist?? Now citing the truth is racist? Oh, yeah, I guess in today's PC world it might be - NO...only to those who CHOOSE to interpret it that way.
Cheers, RickO >>
<< <i>
<< <i>On a side note, the article is pretty racist. >>
Race was not mentioned in the linked opinion piece. Anyone that associates a particular race with what was described may want to reconsider their own level of racism. It may just be stereotyping but unfortunately when it involves race there are those that see it as racism. Same holds true for sexism. >>
Boy are your right..you hit the nail on the head DB
"of the total $178 billion in consumer credit expansion in the past 12 months, a tiny $9 billion, or just 5% of total, was to fund credit card purchases. The rest went - you guessed it - into purchases of cars and paying for tuition, for which GM and strateospheric college tuitions are most grateful. And that is the New Normal economy in a nutshell."
At least with real estate there was a chance of asset appreciation.
Natural forces of supply and demand are the best regulators on earth.
Knowledge is the enemy of fear
<< <i>I have little doubt there will be an increase in college loan defaults. I also have little doubt that these defaults will leave PM bulls disenchanted. >>
The "new" money needed to cover them can only be a good thang.
Natural forces of supply and demand are the best regulators on earth.
Assuming the average outstanding balance on those vehicle loans is $15k, we have $1.3 trillion in outstanding vehicle loans today. Another all-time record high. ZIRP has boosted car sales almost as much as housing. I am not saying this is good or bad, just that it is...what it is.
Natural forces of supply and demand are the best regulators on earth.
<< <i>
<< <i>Ok. But so what? Dollar destruction means all assets will increase in value, especially those based on human necessity. PMs have virtually zero necessity. A company that can purify water could be priceless.
PMs are nothing special. >>
Priceless water will be the result of worthless paper money. Real money will buy that priceless water when the dollar will not. That is what makes gold special. >>
Very good discussion between you to. Thanks for sharing
BST Transactions (as the seller): Collectall, GRANDAM, epcjimi1, wondercoin, jmski52, wheathoarder, jay1187, jdsueu, grote15, airplanenut, bigole
So is all that loaned out money thanks to the Fed. So I guess it all evens out.
Box of 20
<< <i>And all those cars are guaranteed to depreciate in value.
So is all that loaned out money thanks to the Fed. So I guess it all evens out. >>
Unlike real estate (where there is a chance of recovering from a bad loan) automobiles will never be worth what is owed on them. They are losers the minute they leave the gate.
Natural forces of supply and demand are the best regulators on earth.
<< <i>
<< <i>And all those cars are guaranteed to depreciate in value.
So is all that loaned out money thanks to the Fed. So I guess it all evens out. >>
Unlike real estate (where there is a chance of recovering from a bad loan) automobiles will never be worth what is owed on them. They are losers the minute they leave the gate. >>
really? I see lots of old cars being auctioned for many multiples of the original sticker price on Barrett Jackson and other venues. It's just a matter of picking the asset, buying and holding, and taking care of the investment over time
once again, what is generally true always has exceptions. even that last sentence!
Liberty: Parent of Science & Industry
<< <i>once again, what is generally true always has exceptions. even that last sentence!
There are always exceptions to what's normal, you continue to prove that.
Natural forces of supply and demand are the best regulators on earth.
"But unless colleges plan to offer master's degrees in janitorial studies, they will have to change. They currently have little incentive to do so, as they are often strangled by tenure rules, spoiled by subsides from government and rich alumni, and more interested in trivial things—second-rate research by third-rate scholars; ball-throwing contests—than imparting knowledge. Yet dire financial straits from falling demand for their product will force two types of changes within the next five years."
Natural forces of supply and demand are the best regulators on earth.
Too many positive BST transactions with too many members to list.
"We are in unknown territory, on an economic Star Trek, with Captain Bernanke about to turn the helm over
to Captain Yellen, going where no reserve-currency-printing central bank has gone before. This is
not Argentina or Zimbabwe we are talking about. The Federal Reserve is setting its course based
on economic theories created by people whose models are demonstrably terrible."
Natural forces of supply and demand are the best regulators on earth.
Knowledge is the enemy of fear
<< <i>Automobiles are tools and are therefore extremely valuable. The result of a car loan bubble -I do not believe there is one- would be people buying cars they can afford, just as real estate corrected itself. These are all good things. >>
Houses are a necessity and are therefore extremely valuable. That did not prevent a bubble heard around the world. A price bubble is self correcting. A debt bubble. . . we'll we've been to that dance before and it seems that music won't end anytime soon.
Natural forces of supply and demand are the best regulators on earth.
Liberty: Parent of Science & Industry
<< <i>Gosh, complaining about spending on useful automobiles.. next thing you know, the critics will complain that people are spending money on education in the hopes of getting a better job
The for profit universities along with the easy student loans has distorted some of the benefits of higher education. I belive that half of the law school graduates in the last five years are not employed in the field. Meanwhile the non performance rate on these loans is 15%. That is $150 billion of the $1 of debt outstanding.
Not to worry though.....
<< <i>Automobiles are tools and are therefore extremely valuable. The result of a car loan bubble -I do not believe there is one- would be people buying cars they can afford, just as real estate corrected itself. These are all good things.
There is certainly a PERSONAL DEBT BUBBLE and auto loans are the largest percentage of that bubble... It is a bubble.. Yes automobiles are a tool.... However the amounts spent and borrowed on them is disproportionate to there value as a tool.. Most persons whom buy autos are not buying them as a "tool".. They are buying the Venti double extra shot with all the fat thank you...on their credit card. There is always the exception to the rule... Just visit a dealership and see who's buying what....
<< <i>Gosh, complaining about spending on useful automobiles.. next thing you know, the critics will complain that people are spending money on education in the hopes of getting a better job
The OP is about worthless loans reaching an epidemic level. What they buy is irrelevent, who ends up footing the bill is relevent. Those of us that pay taxes were on the hook the last time a debt bubble popped because it was ignored.
Natural forces of supply and demand are the best regulators on earth.
Natural forces of supply and demand are the best regulators on earth.
<< <i>double post. . .must be inflation >>
Enjoy it now before the 1/10 cent per post tax is implemented.
"Credit card companies, which attract new customers with zero percent teaser rates and more rewards, have raised rates while their costs remain historically low, industry observers say."
Natural forces of supply and demand are the best regulators on earth.
<< <i>Average credit card interest up to shocking 21%
"Credit card companies, which attract new customers with zero percent teaser rates and more rewards, have raised rates while their costs remain historically low, industry observers say." >>
Banks pay zero for the last six years and the libs brag about how the US made money or the bank bailouts. Glad that we can subsidize the $40,000,000 a year Wall Street shysters.
Credit card interest should be high because its unsecured lending but, these banks will be bailed out by the tax payer if anything goes wrong they don't deserve it. Let them forgo their TBTF protection and I'm okay with them charging 50 % . Borrowing money from the Fed at 0% and loaning it out at no risk at 21% is obscene.
<< <i>Average credit card interest up to shocking 21%
"Credit card companies, which attract new customers with zero percent teaser rates and more rewards, have raised rates while their costs remain historically low, industry observers say." >>
If it were not for those obligingly carrying balances and paying those high rates of interest I would not be netting thousands a year in regular 1.5% cash back and bonus cash for just accepting credit cards.
All those freebies for me have to be paid for somehow.
https://www.pcgs.com/setregistry/gold/liberty-head-2-1-gold-major-sets/liberty-head-2-1-gold-basic-set-circulation-strikes-1840-1907-cac/alltimeset/268163
<< <i>Borrowing money from the Fed at 0% and loaning it out at no risk at 21% is obscene. >>
Welcome to 2014 America. Socialism when it is time to bail out the banks, Capitalism when the banks charge usurious rates.
Gilead Science is up a few bucks today on their quarterly earnings. They make a Hepatitis drug which they sell for $1000 a pill. 80 are needed for the "cure". Again, We are Socialists when it time to pay for our neighbors healthcare and free market Capitalists when the $1000 pills hit the market.
This madness is not sustainable.
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<< <i>Average credit card interest up to shocking 21%
"Credit card companies, which attract new customers with zero percent teaser rates and more rewards, have raised rates while their costs remain historically low, industry observers say." >>
If it were not for those obligingly carrying balances and paying those high rates of interest I would not be netting thousands a year in regular 1.5% cash back and bonus cash for just accepting credit cards.
All those freebies for me have to be paid for somehow. >>
I will choose to pay cash every time and skip the rewards. I'm tired of being monetized by these parasites.
The privacy of my purchases is worth more than 1.5%. In any case I don't understand paying an extra 3% for something to get 1.5% back.
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<< <i>Average credit card interest up to shocking 21%
"Credit card companies, which attract new customers with zero percent teaser rates and more rewards, have raised rates while their costs remain historically low, industry observers say." >>
If it were not for those obligingly carrying balances and paying those high rates of interest I would not be netting thousands a year in regular 1.5% cash back and bonus cash for just accepting credit cards.
All those freebies for me have to be paid for somehow. >>
I will choose to pay cash every time and skip the rewards. I'm tired of being monetized by these parasites.
The privacy of my purchases is worth more than 1.5%. In any case I don't understand paying an extra 3% for something to get 1.5% back. >>
How would someone pay 3% more than to get 1.5% back?
https://www.pcgs.com/setregistry/gold/liberty-head-2-1-gold-major-sets/liberty-head-2-1-gold-basic-set-circulation-strikes-1840-1907-cac/alltimeset/268163
I'm think of coins in particular. Online everyone wants 3% more to do a credit card transaction. I'd send a check or do a wire transfer every time.
<< <i>I'm think of coins in particular. Online everyone wants 3% more to do a credit card transaction. I'd send a check or do a wire transfer every time. >>
From a trusted seller, yes.
<< <i>I'm think of coins in particular. Online everyone wants 3% more to do a credit card transaction. I'd send a check or do a wire transfer every time. >>
We can all decide on a case by case basis.
I don't pay 3% more on ebay when I purchase coins. Last week my ebay bullion purchases listed under coins came with a 9.5% discount (8% ebay bucks plus 1.5% credit card)
If someone wants 3% more to pay via a credit card I just pay by check.
The credit card I use for gasoline purchases pays me back 3% or on average $12 per month. It is a simple matter to find gas stations offering the same price for cash or credit. The 11 cents per gallon I save adds up.
My point is that if you play the game wisely the credit card companies pay you instead of you paying them. Last year they paid me just under $3,000.
I will leave it to others to loathe banks - I laugh all the way to the bank.
https://www.pcgs.com/setregistry/gold/liberty-head-2-1-gold-major-sets/liberty-head-2-1-gold-basic-set-circulation-strikes-1840-1907-cac/alltimeset/268163
My wife is the opposite, she charges everything and gets free plane tix and whatever else. Good for her, but I'd rather not have a 4 figure check to write every month for a few bucks back.
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<< <i>I'm think of coins in particular. Online everyone wants 3% more to do a credit card transaction. I'd send a check or do a wire transfer every time. >>
We can all decide on a case by case basis.
I don't pay 3% more on ebay when I purchase coins. Last week my ebay bullion purchases listed under coins came with a 9.5% discount (8% ebay bucks plus 1.5% credit card)
If someone wants 3% more to pay via a credit card I just pay by check.
The credit card I use for gasoline purchases pays me back 3% or on average $12 per month. It is a simple matter to find gas stations offering the same price for cash or credit. The 11 cents per gallon I save adds up.
My point is that if you play the game wisely the credit card companies pay you instead of you paying them. Last year they paid me just under $3,000.
I will leave it to others to loathe banks - I laugh all the way to the bank. >>
Your ebay bucks come out of my seller fees no savings there because when fees go up so do prices. Sellers having to list in non bullion give up their right to refuse to take returns so they probably raise prices for that too.
Gas pumps that sell cash or credit same price do it by sticking it to the cash customers not by lowering the credit price. That 3% is built in everywhere you use a credit card.
If you got $3000 back it means you paid $6000 in fees of which $3000 was a forced 0% loan to the bank.
<< <i>Gas pumps that sell cash or credit same price do it by sticking it to the cash customers not by lowering the credit price. >>
Rarely do gasoline retailers stick it to anyone. The couple of cents per gallon margin is absorbed by the credit card user. They hope that you come in and buy a six of Corona or a few big gulps to earn them a spread.
"It’s how a state, any state, can turn worthless pieces of paper into valued currency."
Natural forces of supply and demand are the best regulators on earth.
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<< <i>I'm think of coins in particular. Online everyone wants 3% more to do a credit card transaction. I'd send a check or do a wire transfer every time. >>
We can all decide on a case by case basis.
I don't pay 3% more on ebay when I purchase coins. Last week my ebay bullion purchases listed under coins came with a 9.5% discount (8% ebay bucks plus 1.5% credit card)
If someone wants 3% more to pay via a credit card I just pay by check.
The credit card I use for gasoline purchases pays me back 3% or on average $12 per month. It is a simple matter to find gas stations offering the same price for cash or credit. The 11 cents per gallon I save adds up.
My point is that if you play the game wisely the credit card companies pay you instead of you paying them. Last year they paid me just under $3,000.
I will leave it to others to loathe banks - I laugh all the way to the bank. >>
Your ebay bucks come out of my seller fees no savings there because when fees go up so do prices. Sellers having to list in non bullion give up their right to refuse to take returns so they probably raise prices for that too.
Gas pumps that sell cash or credit same price do it by sticking it to the cash customers not by lowering the credit price. That 3% is built in everywhere you use a credit card.
If you got $3000 back it means you paid $6000 in fees of which $3000 was a forced 0% loan to the bank.
You seem intent on demonstrating (seemingly to yourself) that those shrewdly taking advantage of credit card perks are not actually profiting.
Getting 9.5% cash back via ebay (8% ebay bucks + 1.5% CC cashback) when paying 3-4% over spot for modern gold commemorative coins lets me buy gold for about 5% under spot. I am hard pressed to find a downside when I can buy gold coins below spot. The fact that ebay bucks come out of seller fees makes the plight of ebay sellers more pitiable but does not effect me. Ditto for those paying cash for gasoline who in your mind should be getting a discount. My AAA credit card has never cost me a cent and I net about $120 per year on gasoline purchase rebates plus get $50 bonus certificates for every $5,000 in gasoline purchases to apply to my annual AAA membership.
I did get $3,000 last year from credit card companies as cash back and/or bonuses for just accepting their cards. Like I said I paid NO interest or other fees to credit card companies in 2013. What new math did you use to conclude I somehow paid $6,000 in fees to credit card companies?
https://www.pcgs.com/setregistry/gold/liberty-head-2-1-gold-major-sets/liberty-head-2-1-gold-basic-set-circulation-strikes-1840-1907-cac/alltimeset/268163
<< <i>The Real Reason the U.S. Dollar Has Value
"It’s how a state, any state, can turn worthless pieces of paper into valued currency." >>
A dollar bill or a silver coin or an electronic dollar is just a receipt for a bit of work, stored in a form that can be transported and exchanged.
the fact that some people and systems (like machines and businesses) earn more of them than others, or choose different uses to put those stored units to, is immaterial to the units themselves; they're all currency with assorted liquidity and exchange rates. Pick your horses and let the cards fall where they may, each of us has 24 hours per day
Liberty: Parent of Science & Industry
<< <i>A dollar bill or a silver coin or an electronic dollar is just a receipt for a bit of work, stored in a form that can be transported and exchanged. >>
Baley, you are correct about the first and the third.
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<< <i>A dollar bill or a silver coin or an electronic dollar is just a receipt for a bit of work, stored in a form that can be transported and exchanged. >>
Baley, you are correct about the first and the third. >>
And the reson the second one has it's value is completely different from why the other two have value.
Natural forces of supply and demand are the best regulators on earth.
the fact that some people and systems (like machines and businesses) earn more of them than others, or choose different uses to put those stored units to, is immaterial to the units themselves; they're all currency with assorted liquidity and exchange rates. Pick your horses and let the cards fall where they may, each of us has 24 hours per day
Good observation, Baley. I was beginning to think that you didn't have it in ya.
Still, a silver coin has a significantly longer history in performing the function, based on the trust thingy. I've picked my horse.
I knew it would happen.