Benefits of frugality?
timeOday
involuntarily, only to prop up stocks, investment banks, and home
prices. Those who bought homes they couldn't afford are being supported
by those who didn't, punishing the frugal. This is depressing.
On the bright side, let's look at how being frugal pays off during times
like these.
(I hope this doesn't come off as insensitive to retirees who are
watching their investments go down the tubes and savings ravaged by
inflation in prices for food, energy, and health care... just trying to
find a silver lining):
* You aren't upside on a loan for an SUV you can no longer afford either
to refuel or sell.
* You don't have an adjustable rate mortgage about to reset, ravaging
your finances.
* You don't have a big balance on credit cards where the interest rate
could skyrocket at any moment.
* Living beneath your means gives you a cushion to absorb temporary
shocks in gas and food prices.
more?
Dennis
No mortgage, no auto loan, no debt at all other than month-to-month
utility bills and credit card charges (paid off each month).
The Dow is about where it was 5 1/2 years ago. I didn't feel
desperately broke then, either.
I guess we'll see.
--
It looks like freedom
But it smells like death
It's something in between,
I guess
It's closing time - Leonard Cohen
Al Bundy
Al Bundy
Donald Trump said oil would go back to $20/bbl. T.Boone Pickens bet
him $100K that it would never see $50 again and said that Trump should
stick to real estate. We're only part way into this crisis and we're
more than half way down the price ladder. Fueling the SUV might not be
a big problem the way it's going.
Saving your money or avoiding a credit balance won't be much help if
the dollar is devalued and the other guy's loans are forgiven.
I see very little good in all this. Perfecting one's non monetary
survival skills could be very helpful.
Rod Speed
> Recent events have me feeling I am being dragged into debt involuntarily,
> only to prop up stocks, investment banks, and home prices.
Lot cheaper than bailing out the entire country when we end up with another great depression or worse.
> Those who bought homes they couldn't afford are being
> supported by those who didn't, punishing the frugal.
Yes, but you get that in spades with welfare. Those that have enough of a clue
to arrange their personal financial circumstances and employability always get
punished when they end up paying for those who are to stupid to do that stuff.
> This is depressing.
Tad of an improvement on another great depression or worse tho.
> On the bright side, let's look at how being frugal pays off during times like these.
If everyone did this stuff, it would just make the economy MUCH worse.
> (I hope this doesn't come off as insensitive to retirees who are watching
> their investments go down the tubes and savings ravaged by inflation in
> prices for food, energy, and health care... just trying to find a silver lining):
> * You aren't upside on a loan for an SUV you can no longer afford either to refuel or sell.
> * You don't have an adjustable rate mortgage about to reset, ravaging your finances.
> * You don't have a big balance on credit cards where the interest rate could skyrocket at any moment.
> * Living beneath your means gives you a cushion to absorb temporary shocks in gas and food prices.
> more?
You dont have much more house or car than you need and may well have paid off your mortgage completely
if you in the second half of your life etc and can just carry on regardless even if we do end up with another
great depression or worse, particularly if you have moved out of the stock market a while ago now.
Rod Speed
But will be a big help if their loans arent forgiven.
> I see very little good in all this. Perfecting one's non monetary survival skills could be very helpful.
I doubt it. We didnt see much of that during the great depression and things
wont be anything like there were then even if we do see another great
depression or worse, mainly because govts have enough of a clue not to
repeat the stupiditys that turned the wall st crash into the great depression.
William Souden
> timeOday <timeOda...@theknack.net> wrote:
>
>> Recent events have me feeling I am being dragged into debt involuntarily,
>> only to prop up stocks, investment banks, and home prices.
>
> Lot cheaper than bailing out the entire country when we end up with another great depression or worse.
>
>> Those who bought homes they couldn't afford are being
>> supported by those who didn't, punishing the frugal.
>
> Yes, but you get that in spades with welfare. Those that have enough of a clue
> to arrange their personal financial circumstances
meaning those of us with jobs
and employability always get
> punished when they end up paying for those who are to stupid to do that stuff.
Meaning Rod speed,lifetime welfare recipient.
phil scott
no rent, no mortgage, no taxes if you live on a boat or in a
motorhome....and you can work anywhere..a huge advantage.
phil scott
>
> - Show quoted text -
the dow is way *below where it was 5 years ago... its in the 1995
range if you figure the devalued dollar... average about 10 pct a year
real inflation over the last 15 years... about 20 pct a year now.
Bread was 2 dollars a loaf then or less. 1.25 or so...now its 5
dollars
to stay even the dow would have to be at 20 or 30,000
the govts cpi is bogus.
Phil scott
phil scott
>
> - Show quoted text -
correct.
imo
however perfecting ones dire times earning capabilty is even better
imo... the money can be so perverted that it ends badly no matter
what...but earning skills for dire times keeps on bringing in the
bacon.
my plan... not easy though
Dennis
<ph...@philscott.net> wrote:
>On Oct 9, 4:00 pm, Dennis <dg...@hotmail.com> wrote:
>> The Dow is about where it was 5 1/2 years ago. I didn't feel
>> desperately broke then, either.
>>
>> I guess we'll see.
>>
>
>the dow is way *below where it was 5 years ago... its in the 1995
>range if you figure the devalued dollar... average about 10 pct a year
>real inflation over the last 15 years... about 20 pct a year now.
>
>Bread was 2 dollars a loaf then or less. 1.25 or so...now its 5
>dollars
>to stay even the dow would have to be at 20 or 30,000
>
>
>the govts cpi is bogus.
Real engineers don't pull numbers out of their ass.
Here's a real number: we mostly bake our own bread, but a couple weeks
ago I bought a loaf of store bread for US$1.50 (Orowheat multigrain).
But hey, I'll play along anyway. In 1995, I was in the middle of a
two year vacation/LOA. I was developing 30 acres in the country
(bought with cash) in preparation for building our new 3200 sf home in
1996 (built with no mortgage). I didn't feel all that broke then,
either.
Dennis (evil)
--
My output is down, my income is up, I take a short position on the long bond and
my revenue stream has its own cash flow. -George Carlin
phil scott
>
> - Show quoted text -
I will try to be polite.... your points are not ill taken either.
However the tone suggests error and fault, justified by your own
obvious success, brains and personal capability... and not a bit of
that is bogus... these characteristics suceed... you have pointed that
out...and you are way more than 100% correct....and well documented
with your 1.50 loaf of bread etc.
However, when discussing the macro issues..that is that the nation has
not ended up with a population capable at these levels, and bread that
used to sell for 1.50 is now selling at 5 dollars comonly...and
given one is discussing this macro as it is what drives the nation....
individual exceptions do not.
the macro drives the nation...it is the macro that is relevant...and
yes indeed. parsing the numbers to accuracy would be nice, but given
all the spin, bogus cpi figures and complexties of economics, not
possible...and certainly not practial in a post.
but the general observations can be commented on, and the sea change
can be noted....even as the tide is going out...and even as the
occasional breaker washes high onto the shore.. you see?
the exceptions are not the drivers, and are not the relevant issue as
regards these national sea changes...
nice brag though, you earned it. I wish you well in the coming years
and hope you are able to pass those values on to others.
Phil scott
Marsha
> Bread was 2 dollars a loaf then or less. 1.25 or so...now its 5
> dollars
>
>
Where the heck are you buying your bread?
Marsha/Ohio
phil scott
San Francisco bay area....
Prices for low end breads:
$1 a loaf at the 99 cent store.
$1 to 1.50 a loaf for same type at food giant etc.
$2 or more same loaf at the major super markets if they even stock it.
characteristics of this bread... lots of gluten, highly refined. not
generally healthy.
Prices for high end breads, sprout bread, many of the multi grains and
wheat berry types;
Not stocked at the 99 cent stores etc.
$4.50 a loaf at the major chains regular price,
$3.00 to $3.50 on sale, mostly over $350 on sale... not too many
sales.
Add a dollar if you are on the coast, Pacifica, Moro Bay, Parts of
marin county... or high into the
sierra nevada mountains or the gold country etc...Grass Valley calif,
and higher.
Deduct 50 cents or more if you are away from the coast, inland near
Oakland, san Leandro etc.
but you have to be quick to avoid the ongoing gun fire.
(rents here are high... $1,000 a month for a small place in a bad
neighborhood, old..and somewhat shabby.
$2,000 a month for small but good area... neat..not elaborate.
$4,000 a month for a pretty nice place in the city or on the
coast..fairly large, say 1500 sq ft.)
those rents typically pay about half of what a mortgage payment would
be ...hurting many landlords... prices though in many areas have
declined by 25% usually, some by 40%.... the very high end, in some
spots has gone up...but thats not common.
Stockton calif, 80 miles to the west...the entire sacramento valley
has become the nations black hole of property value decline and
forclosures...
Phil scott
SoCalMike
> * Living beneath your means gives you a cushion to absorb temporary
> shocks in gas and food prices.
>
> more?
i can easily take more time off work, unpaid and do stuff id rather do.
let other people that need the money have the hours. no biggie. theyre
there for me if i need them.