INFLATION

Discussion in 'West Mall' started by Chop, Nov 30, 2021.

  1. Mr. Deez

    Mr. Deez Beer Prophet

    Kennedy took the ex-CEO of Silicon Valley Bank and sewed his *** to his face.

     
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  2. Monahorns

    Monahorns 5,000+ Posts

    Every bank is on the brink of going where SVB went. Government bonds have been preached for decades as the safe bet. The DoT has forced banks into buying bonds. There is no hedge for government bonds for banks in a central banking system like we have. This is a discussion between two blind men arguing over what a flower looks like.
     
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  3. mchammer

    mchammer 10,000+ Posts

  4. mchammer

    mchammer 10,000+ Posts

    At some point, rising unemployment will tame wage increases.
     
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  5. HornHuskerDad

    HornHuskerDad 5,000+ Posts

    • Agree Agree x 1
  6. Mr. Deez

    Mr. Deez Beer Prophet

    If that encourages people to keep their cars longer, that would be a good thing. The idea that a lot of people have of buying a new car every few years is pretty foolish from a money standpoint. Personally, I can't imagine spending $50K on a car. I know a lot of people do it, but it just seems crazy to me. (Not one to judge though. I spend a lot on travel and buy fairly expensive booze.)
     
  7. SabreHorn

    SabreHorn 10,000+ Posts

    Deez,

    How about $82,000 for a Ford F150 4X4 King Ranch OR

    $110,000 for a Bronco Raptor

    HHD,

    Gotta love gap insurance, which should be a standard on new car sales.
     
    • Agree Agree x 1
  8. Mr. Deez

    Mr. Deez Beer Prophet

    Like I said, I'm not judging anyone, but I can't see myself doing that.
     
    • Agree Agree x 1
  9. mchammer

    mchammer 10,000+ Posts

    • Hot Hot x 1
  10. HornHuskerDad

    HornHuskerDad 5,000+ Posts

    Agree. But I'm still of the opinion that there are better alternatives to paying $50K for a brand new car - like, for instance, buying a two-year-old Certified Pre-owned instead (that's what I did on my last purchase) and letting the first owner absorb the early depreciation.
     
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  11. Mr. Deez

    Mr. Deez Beer Prophet

    Personally, I still buy new, but I don't buy high-end, and I take good care of my cars. When I was a kid, my parents never bought new, never bought from dealers, and never bought anything less than about 6 years old. (They also never took out an auto loan.)

    Accordingly, any new car seems nice to me. Is it comfortable, reliable, and easy to maintain? That's what I care about.

    I have a 2019 Kia Sorento that I bought new in the US and had shipped to Germany. However, I mainly use it to transport big things, when we have company, or when the wife needs to be driven around and wants a lot of room. I probably only drive it 1-2 times per week. Also, driving a big SUV on small British roads is a hassle.

    The car I drive everyday for personal errands? It's a 2015 Ford Fiesta that I bought new in Germany. It now has over 100K miles on it, but I've taken excellent care of it, so everything on it still basically works like new. Furthermore, because of its size, it's MUCH better suited for the roads here. I have no plans to get rid of it anytime soon.
     
  12. mchammer

    mchammer 10,000+ Posts

    In January 2022, I bought pre-owned 2019 Honda passport (base trim model) with 19k miles - previous owner had it for 2 years. Probably saved $10k. Honda came out with a new model version of the Passport in 2022, thus making the lower trim version from 2019 not very desirable.
     
  13. HornHuskerDad

    HornHuskerDad 5,000+ Posts

    In 2015 I bought a Certified Pre-owned 2012 Infiniti G-37 convertible. It came with the rest of the original warranty, and had about 40K miles on it. The original sticker price in 2012 was $56K. I paid $28K for it. I'm still driving it (about 92K miles now). I take good care of it, and have it serviced regularly by my local mechanic shop (got sick and tired of the local Infiniti dealer's service dept). I put about 600 miles per month on the car, and fully expect it to last another 3-4 years.
    I am fully sold on buying Certified Pre-owned - it's going to give you a quality car without having to absorb the horrendous early-years depreciation of a new car.
     
    • Agree Agree x 2
  14. Sangre Naranjada

    Sangre Naranjada 10,000+ Posts

    One thing I liked about buying from Carvana is the ability to sort your search by the mileage on the vehicle. We got a 4 year old Civic with 12K miles on it. Given that dealers were charging about $4k over MSRP for new Hondas at the time, it was a fabulous deal.
     
  15. Run Pincher

    Run Pincher 2,500+ Posts

    I sure liked selling to Carvana. After owning my Acura for 2 years and 25k miles they bought it from me last year for $7k more than I paid. Who says a car isn't an appreciating asset?:smile1:
     
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  16. mchammer

    mchammer 10,000+ Posts

    So inflation is good? :beertoast:
     
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  17. Statalyzer

    Statalyzer 10,000+ Posts

    Call me ageist if you want, but your average retiree is going to have a hell of a time using bitcoin in any meaningful way whatsoever. Even a younger person who grew up with a smartphone and high speed internet as normal ways of life will likely find it challenging if they aren't tech-savvy.
     
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  18. Sangre Naranjada

    Sangre Naranjada 10,000+ Posts

    Your average retiree would treat bitcoin like speculating in any other foreign currency: they would have to convert it back to dollars before spending any of it. It's utterly useless to the typical consumer for this reason.
     
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  19. HornHuskerDad

    HornHuskerDad 5,000+ Posts

    Stat, I asked my broker about investing in bitcoin. After he finished laughing, his reply went like this:

    • You're retired with nice pension income that more than meets your current needs.
    • Your stock investments are well-diversified and include some dependable dividend-payers - and have grown steadily since you retired.
    • Why, at your age and with a solid track record in your investments, would you want to speculate?
    Needless to say, that ended the conversation about investing in bitcoin.
     
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  20. Monahorns

    Monahorns 5,000+ Posts

    I'm not saying your broker is wrong, because he is probably right about you. However, I am 100% he is a boomercon who doesn't know much about bitcoin himself. That fact also reinforces why you/he shouldn't buy bitcoin. It isn't something to speculate with. But it does serve an important function and can be one of the most important things in the future IF certain things happen.
     
  21. mchammer

    mchammer 10,000+ Posts

    Maybe his broker’s mind isn’t clouded with kooky ideas.
     
  22. Monahorns

    Monahorns 5,000+ Posts

    Or maybe he is a kooky boomercon
     
  23. Sangre Naranjada

    Sangre Naranjada 10,000+ Posts

    What's a boomercon? Some new LGBTQWERTY type of freak?
     
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  24. Monahorns

    Monahorns 5,000+ Posts

    If you have to ask the question...

    Just kidding.

    It is a baby boomer conservative who thinks exactly how they thought about things 1980s and applies that "conventional" wisdom to all the new things going on in the 2020s.
     
  25. HornHuskerDad

    HornHuskerDad 5,000+ Posts

    Monahorns, I see your point. In my case, high-risk speculation is the wrong strategy. I'm 79 - my long-term outlook is not 20 years, it's the next five (or so, maybe ten). Solid, dividend-paying stocks (and maybe some value buying when the rebound starts) are the best fit for my needs. For younger folks, a bit of speculation (such as bitcoin) may be appropriate. I don't know what my broker advises his other clients; I assume he tailors the investment approach to their circumstances and risk tolerance.
     
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  26. Mr. Deez

    Mr. Deez Beer Prophet

    Monahorns will like this.

    20230524_010011.jpg
     
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  27. ViperHorn

    ViperHorn 10,000+ Posts

    Wrong. The wealth if the United States is behind the dollar. Don't think for a minute that if push came to shove, the taxing power of the US Government can be ramped up quickly if need be.

    As long as you understand that bitcoin is a glorified Ponzi Scheme, have at it.
     
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  28. Monahorns

    Monahorns 5,000+ Posts

    Tell me you have absolutely no inkling of an idea of what bitcoin is without saying it.
     
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  29. Monahorns

    Monahorns 5,000+ Posts

    This makes no sense. The wealth of the US is made up of the products and services that citizens own or have the purchasing power to buy. That is independent of dollars because the valuation of those goods and services in dollar terms because those valuations are not fixed. It also completely ignores what has been going on in America for the last hundred twenty years where the US federal government has been actively stealing the purchasing power of the American people using monetary policy based on dollars. That is what inflation is. Most of which has occurred during our lifetimes.

    The government taxing citizens is simply a more direct form of theft. It doesn't reflect the value of the dollar. It reflects the fact that the dollar system is controlled by the federal government for the purpose of legal counterfeiting and seizure of wealth.
     
  30. Chop

    Chop 10,000+ Posts

    Or the "printing" power of the Fed Gov't.
     

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