@morgansforever said:
6.79% 30 year fixed, could be 10% in 3 months, car loans 6, 10, 15% even on new cars with a 800 credit score. How much more can the general public take? Many banks are offering 4.5%-5% 1 year CD's heck of a lot better than what my 401k and stocks are doing. Going to dump a bit of cash into a CD, God bless us all.
30-year mortgages are not going up 300 bp. in a few months or anytime soon.
CD rates are inching up but some banks still frozen at sub-1% yields.
30-year mortgages are not going up 300 bp. in a few months or anytime soon.
They won't have to. Very few individuals are borrowing to buy homes as even a modest 7% rate has priced them out of market. Mortgage purchase applications are lower than right after the 2009 housing bubble bust. Only reason prices are holding nationally is because no one with a 3% rate will be able to sell.
When we started looking for our first small house after graduating college around 1978 mortgage rates were 10%, the next year they were 13%, then 15%, and in October of 1981 they hit 18%.
Needless to say, we had to rent, but we would have been absolutely thrilled to get a 7% mortgage.
Here is the link to the budget proposal the President proposes. If this was passed, (it won't be), combined with more Fed interest rate increases, I think we would see things grind to a halt a lot faster.
@GoldFinger1969 said:
I can think of FEW people worse to follow for stock advice than David Stockman. Aside from running a nice-sized company into the ground a few decades ago, he has a TERRIBLE track record of stock market prognasticating and is best characterized as a perma-bear.
He will best be known for showing political courage in being the only Michigan politician to vote against the Chrysler Bailout.
@Goldminers said:
When we started looking for our first small house after graduating college around 1978 mortgage rates were 10%, the next year they were 13%, then 15%, and in October of 1981 they hit 18%.
Needless to say, we had to rent, but we would have been absolutely thrilled to get a 7% mortgage.
A 7% rate on a home valued in 1978 is a lot different from a 7 % rate on that home valued in 2023
Treasury notes alot better to buy than CD’s !
I manage money. I earn money. I save money . I give away money. I collect money. I don’t love money . I do love the Lord God.
@morgansforever said:
A local credit union is offering CD's @ 4% for 8 months or 4.25% for 30 months. Literally down the street, no excuse not to take advantage of this.
will your earnings be greater than your loss of puchasing power at the end of CD term?
@morgansforever said:
A local credit union is offering CD's @ 4% for 8 months or 4.25% for 30 months. Literally down the street, no excuse not to take advantage of this.
will your earnings be greater than your loss of puchasing power at the end of CD term?
Will his earnings be greater if he does nothing at all?
@morgansforever said:
A local credit union is offering CD's @ 4% for 8 months or 4.25% for 30 months. Literally down the street, no excuse not to take advantage of this.
will your earnings be greater than your loss of purchasing power at the end of CD term?
That's a great question that I have no answer for but at the pace of decline this economy is going, I would guess the dollar will have far less purchasing power than as of this writing. I'm not a financial wizard, nor do I pretend to be but 4.25% is a heck of a lot better than the shellacking I've taken over the last 2 years.
the shellacking is the hidden tax of 10+%. most people don't consider it beause it is not printed on your bank statement or deducted from your balance. It only shows its ugly head when you spend.
@Higashiyama said: @GoldFinger1969 said: “CD rates are inching up but some banks still frozen at sub-1% yields.”
That’s true but I find it baffling when it is so easy to move money these days.
They are doing the RIGHT thing. If they don't need the money, let it walk. If they have to pay up for deposits they really don't need and can't loan it out or invest properly, no sense in keeping the $$$.
Failure to let "hot money" walk was behind every other banking crisis.
@GoldFinger1969 said:
I can think of FEW people worse to follow for stock advice than David Stockman. Aside from running a nice-sized company into the ground a few decades ago, he has a TERRIBLE track record of stock market prognasticating and is best characterized as a perma-bear.
He will best be known for showing political courage in being the only Michigan politician to vote against the Chrysler Bailout.
jim cramer
Cramer made 20% a year for 18 years for his clients. He walked away with about $400 MM excluding his TSC stake.
David Stockman probably couldn't get a job at Cramer's hedge fund as a RA.
@morgansforever said:
A local credit union is offering CD's @ 4% for 8 months or 4.25% for 30 months. Literally down the street, no excuse not to take advantage of this.
@morgansforever said:
A local credit union is offering CD's @ 4% for 8 months or 4.25% for 30 months. Literally down the street, no excuse not to take advantage of this.
@GoldFinger1969 said:
I can think of FEW people worse to follow for stock advice than David Stockman. Aside from running a nice-sized company into the ground a few decades ago, he has a TERRIBLE track record of stock market prognasticating and is best characterized as a perma-bear.
He will best be known for showing political courage in being the only Michigan politician to vote against the Chrysler Bailout.
jim cramer
Cramer made 20% a year for 18 years for his clients. He walked away with about $400 MM excluding his TSC stake.
David Stockman probably couldn't get a job at Cramer's hedge fund as a RA.
tv cramer was a shill though. tv cramer used the audience as the other side of his own trades .
@Higashiyama said: @GoldFinger1969 said: “CD rates are inching up but some banks still frozen at sub-1% yields.”
That’s true but I find it baffling when it is so easy to move money these days.
They are doing the RIGHT thing. If they don't need the money, let it walk. If they have to pay up for deposits they really don't need and can't loan it out or invest properly, no sense in keeping the $$$.
Failure to let "hot money" walk was behind every other banking crisis.
———————————————————
Yes, that makes sense, or almost. It’s still a bit of an odd world when treasury securities(for all intents and purposes risk free) are yielding more than bank CDs (low risk if you do your homework, but not risk free). Does that basically mean that banking is dying and most private borrowing is via securities firms? A related question—can you name any major bank paying CD rates that exceed T-bills or notes?
@bronco2078 said:
tv cramer was a shill though. tv cramer used the audience as the other side of his own trades .
You have no proof of that statement which would almost qualify as slander. Not only did he agree to rules dictated by NBC/CNBC, the SEC watches financial commentators like a hawk.
What you are implying is fraud and illegal trading which are crimes -- which, of course, you have ABSOLUTELY no proof because they never happened.
@Higashiyama said:
Yes, that makes sense, or almost. It’s still a bit of an odd world when treasury securities(for all intents and purposes risk free) are yielding more than bank CDs (low risk if you do your homework, but not risk free). Does that basically mean that banking is dying and most private borrowing is via securities firms? A related question—can you name any major bank paying CD rates that exceed T-bills or notes?
There are lots of CDs that pay more than Treasuries, you just have to look around. Decades ago, CDs were almost always higher except in the case of Zero Coupon Securities.
Many people are still not comfortable buying Treasuries or other securities in a brokerage account. Not everybody trades crypto on Robinhood. And some people believe an indirect government backing (FDIC) is stronger than a direct government backing (Treasuries, assuming no default).
Sold all my 2-year treasuries last week for a nice gain as 2-year interest rates dropped like a rock. Then bought Charles Schwab bank CD's paying 5.35%, for 12 and 18 months.
I converted to a much better rate and FDIC insured. Doing my part to help keep them afloat since my brokerage account is with them. LOL
@Goldminers said:
I converted to a much better rate and FDIC insured. Doing my part to help keep them afloat since my brokerage account is with them. LOL
Schwab is fine......classic case of throwing the baby out with the bath water.
@Martin said: @derryb@cohodk as this thread is 5 years old. I have a simple question for each of you. It’s a yes or no question. Are you better off financially now than when this tread started? I’m just curious.
2c.
All's well in Renville.
Since beginning this thread six years ago I've retired early, by 3 years; still living on the Islands along with my Ohana minus one; bought a beach house three months into retirement at 2 5/8%; four streams of income (fifth will be along soon). My personal coin & PM collections have done well in that time; nothing new here. We still travel a lot. The RenWife and I are definitely doing A-OK six years on.
However, two years of Bidenflation has uncomfortably eaten into the monthly RenBudget with no end in sight. I don't know how people do it. We have Commissary & Exchange privies - lotsa savings there. Retirees don't pay state taxes so we're saving 10-12% right there. We bought 'solar' outright for our new house; my neighbor does not have solar, same house, they pay $600-$700 monthly (everything's electric, no nat gas here). Other utilities are lower but that's because everyone is out of the house. And stocks, ugh, serious beating since January 2022....
Glad to hear it, Comrade! So, your stocks have taken a beating and your coins & PMs have done well. But, but......I keep hearing that the economy is doing great and that there's really no inflation. The Big Guy says so.
Q: Are You Printing Money? Bernanke: Not Literally
Glad to hear it, Comrade! So, your stocks have taken a beating and your coins & PMs have done well. But, but......I keep hearing that the economy is doing great and that there's really no inflation. The Big Guy says so.
Glad to hear it, Comrade! So, your stocks have taken a beating and your coins & PMs have done well. But, but......I keep hearing that the economy is doing great and that there's really no inflation. The Big Guy says so.
We need to know what specific stocks one has -- him or anybody else -- and the same with coins & PMs. What specific ones he/someone has....what the timeframe is.
Yes, stocks have done badly as have bonds since late-2021. PMs and coins a bit better.
Comments
30-year mortgages are not going up 300 bp. in a few months or anytime soon.
CD rates are inching up but some banks still frozen at sub-1% yields.
grinding, grinding, grinding . . .
Give Me Liberty or Give Me Debt
They won't have to. Very few individuals are borrowing to buy homes as even a modest 7% rate has priced them out of market. Mortgage purchase applications are lower than right after the 2009 housing bubble bust. Only reason prices are holding nationally is because no one with a 3% rate will be able to sell.
The next step is a new inflation target. 3%?
When we started looking for our first small house after graduating college around 1978 mortgage rates were 10%, the next year they were 13%, then 15%, and in October of 1981 they hit 18%.
Needless to say, we had to rent, but we would have been absolutely thrilled to get a 7% mortgage.
National Commemorative Medals of the U.S. Mint:
https://www.pcgs.com/setregistry/u-s-coins/medals-tokens/national-commemorative-medals-united-states-mint-1940-present/alltimeset/195526
We'll know alot more in 5 days and especially 12 days between NFP, CPI, and FOMC releases.
Here is the link to the budget proposal the President proposes. If this was passed, (it won't be), combined with more Fed interest rate increases, I think we would see things grind to a halt a lot faster.
https://www.whitehouse.gov/omb/budget/
National Commemorative Medals of the U.S. Mint:
https://www.pcgs.com/setregistry/u-s-coins/medals-tokens/national-commemorative-medals-united-states-mint-1940-present/alltimeset/195526
@GoldFinger1969 said: “CD rates are inching up but some banks still frozen at sub-1% yields.”
That’s true but I find it baffling when it is so easy to move money these days.
move it while you are free to do so
Give Me Liberty or Give Me Debt
jim cramer
A 7% rate on a home valued in 1978 is a lot different from a 7 % rate on that home valued in 2023
Treasury notes alot better to buy than CD’s !
I give away money. I collect money.
I don’t love money . I do love the Lord God.
A local credit union is offering CD's @ 4% for 8 months or 4.25% for 30 months. Literally down the street, no excuse not to take advantage of this.
will your earnings be greater than your loss of puchasing power at the end of CD term?
Give Me Liberty or Give Me Debt
.> @derryb said:
Will his earnings be greater if he does nothing at all?
Knowledge is the enemy of fear
Will his earnings be greater if he does nothing at all?
The better question is "will his losses be less if he does nothing at all?"
I knew it would happen.
That's a great question that I have no answer for but at the pace of decline this economy is going, I would guess the dollar will have far less purchasing power than as of this writing. I'm not a financial wizard, nor do I pretend to be but 4.25% is a heck of a lot better than the shellacking I've taken over the last 2 years.
the shellacking is the hidden tax of 10+%. most people don't consider it beause it is not printed on your bank statement or deducted from your balance. It only shows its ugly head when you spend.
Give Me Liberty or Give Me Debt
They are doing the RIGHT thing. If they don't need the money, let it walk. If they have to pay up for deposits they really don't need and can't loan it out or invest properly, no sense in keeping the $$$.
Failure to let "hot money" walk was behind every other banking crisis.
Cramer made 20% a year for 18 years for his clients. He walked away with about $400 MM excluding his TSC stake.
David Stockman probably couldn't get a job at Cramer's hedge fund as a RA.
Some are at 5% and accept deposits nationally.
tv cramer was a shill though. tv cramer used the audience as the other side of his own trades .
good work if you can get it
@GoldFinger1969 said:
@Higashiyama said:
@GoldFinger1969 said: “CD rates are inching up but some banks still frozen at sub-1% yields.”
That’s true but I find it baffling when it is so easy to move money these days.
They are doing the RIGHT thing. If they don't need the money, let it walk. If they have to pay up for deposits they really don't need and can't loan it out or invest properly, no sense in keeping the $$$.
Failure to let "hot money" walk was behind every other banking crisis.
———————————————————
Yes, that makes sense, or almost. It’s still a bit of an odd world when treasury securities(for all intents and purposes risk free) are yielding more than bank CDs (low risk if you do your homework, but not risk free). Does that basically mean that banking is dying and most private borrowing is via securities firms? A related question—can you name any major bank paying CD rates that exceed T-bills or notes?
You have no proof of that statement which would almost qualify as slander. Not only did he agree to rules dictated by NBC/CNBC, the SEC watches financial commentators like a hawk.
What you are implying is fraud and illegal trading which are crimes -- which, of course, you have ABSOLUTELY no proof because they never happened.
There are lots of CDs that pay more than Treasuries, you just have to look around. Decades ago, CDs were almost always higher except in the case of Zero Coupon Securities.
Many people are still not comfortable buying Treasuries or other securities in a brokerage account. Not everybody trades crypto on Robinhood. And some people believe an indirect government backing (FDIC) is stronger than a direct government backing (Treasuries, assuming no default).
Sold all my 2-year treasuries last week for a nice gain as 2-year interest rates dropped like a rock. Then bought Charles Schwab bank CD's paying 5.35%, for 12 and 18 months.
I converted to a much better rate and FDIC insured. Doing my part to help keep them afloat since my brokerage account is with them. LOL
National Commemorative Medals of the U.S. Mint:
https://www.pcgs.com/setregistry/u-s-coins/medals-tokens/national-commemorative-medals-united-states-mint-1940-present/alltimeset/195526
Schwab is fine......classic case of throwing the baby out with the bath water.
2c.
All's well in Renville.
Since beginning this thread six years ago I've retired early, by 3 years; still living on the Islands along with my Ohana minus one; bought a beach house three months into retirement at 2 5/8%; four streams of income (fifth will be along soon). My personal coin & PM collections have done well in that time; nothing new here. We still travel a lot. The RenWife and I are definitely doing A-OK six years on.
However, two years of Bidenflation has uncomfortably eaten into the monthly RenBudget with no end in sight. I don't know how people do it. We have Commissary & Exchange privies - lotsa savings there. Retirees don't pay state taxes so we're saving 10-12% right there. We bought 'solar' outright for our new house; my neighbor does not have solar, same house, they pay $600-$700 monthly (everything's electric, no nat gas here). Other utilities are lower but that's because everyone is out of the house. And stocks, ugh, serious beating since January 2022....
And pineapples are $4 at Costco. Oh, the horror.
fka renman95, Sep 2005, 7,000 posts
Maybe try Aldi, I just bought pineapples for $1.49. RGDS!
The whole worlds off its rocker, buy Gold™.
All's well in Renville.
Glad to hear it, Comrade! So, your stocks have taken a beating and your coins & PMs have done well. But, but......I keep hearing that the economy is doing great and that there's really no inflation. The Big Guy says so.
I knew it would happen.
our own big guy says so as well
Give Me Liberty or Give Me Debt
We need to know what specific stocks one has -- him or anybody else -- and the same with coins & PMs. What specific ones he/someone has....what the timeframe is.
Yes, stocks have done badly as have bonds since late-2021. PMs and coins a bit better.