Inflation is a mother

[TardStrong]

My advice is don't get caught with your hand in the cookie jar

What did I miss a couple years ago cause my bank basically said 20% down or get the fuck out?

Banks yea, they have tightened up their loans that is why most loans now are non bank backed ie quicken loans. Some people are worried becuase these non bank backed mortgage companies are not regulated like the banks are after the financial crisis of 2008.

 

[MusterX]

The bank serves two purposes, 1) as a source of capital for the average joe, and 2) to make money above and beyond the returns from lending.

If you loaned me 50,000 dollars today what kind of return would you want in 30 years? Its entirely reasonable to collect double that over such a long period. Now you could invest that, buy collectible cars, buy real estate, all things with historically high return rates. Or you could hand it to me and take the risk that I will default.

Im confused why you would compare someone collecting 4% interest to "ruthless" drug dealers.

Its not reasonable, but I'm not going to argue it with you because you seem so entrenched in the current system you can't see why its fucked up. For starters the bank isn't taking any risk, fucking none. The money isn't even real. They probably only keep 5% of deposits on hand and the rest is magical entries on a ledger. They have no risk whatsoever. When I default they get to keep all the money I paid them plus they get the gdamn house back to sell again and make even more money. Its a no lose situation for the bank 99% of the time.

 

[ToxicShocker]

Its not reasonable, but I'm not going to argue it with you because you seem so entrenched in the current system you can't see why its fucked up. For starters the bank isn't taking any risk, fucking none. The money isn't even real. They probably only keep 5% of deposits on hand and the rest is magical entries on a ledger. They have no risk whatsoever. When I default they get to keep all the money I paid them plus they get the gdamn house back to sell again and make even more money. Its a no lose situation for the bank 99% of the time.

You clearly don't understand how a bank works. Or a real estate purchase. Or Return on Investment.

 

[MusterX]

You clearly don't understand how a bank works. Or a real estate purchase. Or Return on Investment.

You can think whatever you like. I've bought two homes in my life, have sizeable investments in the stock market and my company 401k and a firm grasp of bloodsucking bankers. Those cocksuckers are worse than lawyers and used car salesmen.

 

[aerius]

Its not reasonable, but I'm not going to argue it with you because you seem so entrenched in the current system you can't see why its fucked up. For starters the bank isn't taking any risk, fucking none. The money isn't even real. They probably only keep 5% of deposits on hand and the rest is magical entries on a ledger. They have no risk whatsoever. When I default they get to keep all the money I paid them plus they get the gdamn house back to sell again and make even more money. Its a no lose situation for the bank 99% of the time.

That's what banks used to do in the old days. These days, the bank that made you the loan likely doesn't even own it, they've packaged it into a CDO (collateralized debt obligation) and resold it to other banks, hedge funds, and investors, and in many cases no one even knows who the fuck holds your actual mortgage because it's been passed around more times than a $5 whore. You make your monthly payment and your bank mails you a statement, but neither of you know where the money's actually going. A bunch of folks got free homes that way after 2008 when the banks tried to foreclose on their homes, the homeowners demanded proof that the banks held the proper papers and when the banks couldn't find them since mortgages had been sold around so many times, well, boom, free home.

 

[Cygnus A]

Just got our property tax bill. It went up $300/year. Made me think about inflation. Everything keeps going up. Property tax, home owner's insurance, car insurance, HOA dues, water, electricity, etc. I feel for people that don't get a cost of living raise every year to keep up with inflation. Otherwise, you end up making less money every year.

I also feel for people trying to buy a home now. What are mortgage rates at these days? 5%? That's crazy. We locked in a long time ago at 3.5%.

Inflation has been outpacing peoples' salaries for quite a while now. When will a large portion of the population reach the tipping point and no longer be able to afford life?

Still waiting for America to be great again.

 

[CWMMA]

Inflation hasn’t been that bad outside of housing and education.

It’s people spending habits. That and nicer shit is more expensive.

Also... the majority of people in the states do not save. They go and finance every fucking thing they own.

 

[Robocok]

Don't worry, genuis politicians will raise minimum wage again and everything will be ok.

 

[TankAbbott4Eva]

I had a job where I didn't get any pay rise for 4 years, was fucked. I could work overtime which balanced it out but they were just being cunts about it, that's why I left.

 

[90 50]

Inflation hasn’t been that bad outside of housing and education.

It’s people spending habits. That and nicer shit is more expensive.

Also... the majority of people in the states do not save. They go and finance every fucking thing they own.

What people beleive are necessities in thier daily lives didn’t use to exist when I was younger.

Let’s look at average homeowner expenses 35 years ago vs today.

Phone, home phone line MAYBE 20.00 month
Tv, free broadcast over air
Water and electric and gas were cheaper but not a ton if corrected for inflation. Let’s 100.00 month.
Unlikely to have a car note but let’s say one just for hell of it. (My parents never had car notes)200.00 month.

Today
Phones 3 lines, three phones and three watches financed. 400.00 month
Tv, financed curved screens in at least two rooms. 100.00 month minimum
Cable+ internet’s 200.00 month
Netflix, Xbox live and one other stream take your pick let’s say 30.00 total.

Electric,gas ,water 200.00 month

2 cars financed at least, 3 if child old enough to drive. 1500.00 month

This is why we are fucked as a whole. People today have a different expectations of need vs want.

I argue with the woman about this shit non stop. “I need this new purse” etc no the fuck you don’t you WANT this new purse etc

 

[Medulla Omoplata]

What people beleive are necessities in thier daily lives didn’t use to exist when I was younger.

Let’s look at average homeowner expenses 35 years ago vs today.

Phone, home phone line MAYBE 20.00 month
Tv, free broadcast over air
Water and electric and gas were cheaper but not a ton if corrected for inflation. Let’s 100.00 month.
Unlikely to have a car note but let’s say one just for hell of it. (My parents never had car notes)200.00 month.

Today
Phones 3 lines, three phones and three watches financed. 400.00 month
Tv, financed curved screens in at least two rooms. 100.00 month minimum
Cable+ internet’s 200.00 month
Netflix, Xbox live and one other stream take your pick let’s say 30.00 total.

Electric,gas ,water 200.00 month

2 cars financed at least, 3 if child old enough to drive. 1500.00 month

This is why we are fucked as a whole. People today have a different expectations of need vs want.

I argue with the woman about this shit non stop. “I need this new purse” etc no the fuck you don’t you WANT this new purse etc

I agree with you 100%. People's spending habits don't match their income. I see so many people in big houses, 2 big shiny brand new trucks, couple of 4-wheelers in the garage, boat tucked away around the side. I don't understand, there is no way so many people make enough money to be paying for all these luxuries straight up. You may have a bunch of shiny things but I bet you have a bunch of shiny debt as well.

I'd much rather be in my small house with my old car, and have no debt and a bunch of retirement savings, but I guess that doesn't make you look wealthy to the people walking down the sidewalk.

Not to say the financial system isn't rigged or to blame, but individuals have to share some of the blame as well.

 

[KingSpider8]

5% is crazy? how about over 18% during the 1979-1980?

5% is still really low man. We are still well below where it was 1970 to 2007

ok but what was the price of the $800,000 house in 1990? Only $150,000.
I’ll take the 18% rate any day, god I wish.

 

[SammyPops]

Property taxes are based on lots of faactors, more than just inflation.

Over the last decade, we've actually seen deflation. For example, its cheaper to go to Home depot and buy a hammer than it was a couple decades ago, when compared to income.

The problem is that things like groceries, gas, and other essentials have seen major inflation.

 

[TeTe]

Just got our property tax bill. It went up $300/year. Made me think about inflation. Everything keeps going up. Property tax, home owner's insurance, car insurance, HOA dues, water, electricity, etc. I feel for people that don't get a cost of living raise every year to keep up with inflation. Otherwise, you end up making less money every year.

I also feel for people trying to buy a home now. What are mortgage rates at these days? 5%? That's crazy. We locked in a long time ago at 3.5%.

Inflation has been outpacing peoples' salaries for quite a while now. When will a large portion of the population reach the tipping point and no longer be able to afford life?

Don't you live in San Diego too?

The funny thing is property tax in Chicago/Cook County and a lot of the outer ring burbs is way higher than the average property tax bill in SD county. There are some people paying $15,000 a year in property taxes out in far burbs of Chicago. As expensive as houses are here, you make up for it a bit in property tax over what it could be.

Don't disagree with your points though. The gf and I are going to be buying a house soon and expect to pay between $500-600k for a 1200 sq foot single family home.

 

[90 50]

I agree with you 100%. People's spending habits don't match their income. I see so many people in big houses, 2 big shiny brand new trucks, couple of 4-wheelers in the garage, boat tucked away around the side. I don't understand, there is no way so many people make enough money to be paying for all these luxuries straight up. You may have a bunch of shiny things but I bet you have a bunch of shiny debt as well.

I'd much rather be in my small house with my old car, and have no debt and a bunch of retirement savings, but I guess that doesn't make you look wealthy to the people walking down the sidewalk.

Not to say the financial system isn't rigged or to blame, but individuals have to share some of the blame as well.

I still drive a 2011 Z71, sure it’s got 190k miles on the clock , but I take care of it and it’s still nice AF

I could go buy a brand new truck but why? I don’t Owe anyone shit on it or My boats.

 

[TeTe]

I still drive a 2011 Z71, sure it’s got 190k miles on the clock , but I take care of it and it’s still nice AF

I could go buy a brand new truck but why? I don’t Owe anyone shit on it or My boats.

Buying new cars is never a wise investment unless you plan on keeping the thing for ten years plus.

I only buy cars that are a few years old with low mileage for the year. I end up getting the car for 50-60 percent less than new because someone else took the hit on the depreciation. I've only bought one new car (the last Camaro I owned) and kept that thing for almost ten years.

 

[Medulla Omoplata]

Don't you live in San Diego too?

The funny thing is property tax in Chicago/Cook County and a lot of the outer ring burbs is way higher than the average property tax bill in SD county. There are some people paying $15,000 a year in property taxes out in far burbs of Chicago. As expensive as houses are here, you make up for it a bit in property tax over what it could be.

Don't disagree with your points though. The gf and I are going to be buying a house soon and expect to pay between $500-600k for a 1200 sq foot single family home.

Damn I didn't realize modship paid that well.

 

[TeTe]

Damn I didn't realize modship paid that well.

LOL a lot of people don't stay in this city because houses cost so much. But I guess you compare that to house prices in Seattle, Chicago, NYC, Boston, etc. and it really isn't that much more.

In Canada? it seems cheap compared to places like Vancouver.

 

[plataoplombo]

I agree with you 100%. People's spending habits don't match their income. I see so many people in big houses, 2 big shiny brand new trucks, couple of 4-wheelers in the garage, boat tucked away around the side. I don't understand, there is no way so many people make enough money to be paying for all these luxuries straight up. You may have a bunch of shiny things but I bet you have a bunch of shiny debt as well.

I'd much rather be in my small house with my old car, and have no debt and a bunch of retirement savings, but I guess that doesn't make you look wealthy to the people walking down the sidewalk.

Not to say the financial system isn't rigged or to blame, but individuals have to share some of the blame as well.

True. My wife complains all the time when I don't want to spend. She's always talking about how everyone else has all these things and going on all these vacations but we don't. Then I have to remind her that all those people are in debt up to their eyeballs and will forever be in debt while we have very little debt and are actually doing a lot better than most people around us.

 

[TeTe]

True. My wife complains all the time when I don't want to spend. She's always talking about how everyone else has all these things and going on all these vacations but we don't. Then I have to remind her that all those people are in debt up to their eyeballs and will forever be in debt while we have very little debt and are actually doing a lot better than most people around us.

Consumerism and keeping up the Joneses have buried a couple of my friends. You are better and smarter than that. Good for you.