All Forum Posts by: Account Closed

I did the same thing. Close to the same rate, too. Right now it's costing me 249.00 a month to hold the 70k HELOC in my credit union checking account. I see GMAC online bank has a high yield savings account at 2.75%. I am considering putting it over there so I only have to pay the spread between 2.75 and 4.25 until I make a move. I am gambling on being deflationary for at least the rest of this year. I will refi what ever I get with something fixed, hopefully before inflation kicks in.

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Originally posted by Alfred Bell:

Gold is a store of wealth not an investment. I think this is the attitude that most non-goldbugs have about gold. You can't get wealthy with it but it might come in handy if the existing currency disintegrates. But only until a new currency comes on line.

Alfred I agree with you a lot on this. I do think the chances of the currency disintegrating are pretty good. Historically, the collapse of a fiat currency has not failed. Though you're also correct in that it may not happen until 2076 :). Some say the perfect storm is here now. Though some say rents never go down and housing prices always go up, too. We're probably making offers on their houses to the bank.

Either way I love the topic. Good thread you started. Right now I am making some offers on properties, and watching the price of gold hyper vigilantly.

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I love this thread. Aside from stopping in here daily I've been following precious metals. I like the different opinions on gold and silver in this thread.

I am ok on silver, can always use more. If gold moves back down to the 700s I may pick some up. I deciding between gold or another property. Precious metals are so much easier but do not cashflow!

I think gold will trend up for the next seven to ten years. From what I understand the gold bear market lasted twenty years and didn't start getting bullish until 2002. I am assuming the bull will last as long. That could be a mistake.

Also, historically during severe recessions and depressions the ratio of dow/gold oz. drops to around 2 before gold starts trending down long term. I think right now we're at around 7.

Some of the authors I've been reading claim that gold wins during both a deflationary and inflationary situation when it is severe. But those authors are also usually selling gold. Damn them! It's a rich dad guru world we live in :)

Either way, tangibles, canned food. Learning to shoot weapons. No .999 johnson matthey silver bullets, only lead! I do not trust the fiat dollar for long. I've been reading too much conspiracy theory stuff.

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Originally posted by Jon Holdman:

So, Matty, locking in fixed rate loans now seems like a REALLY good idea!

I can see why some are predicting the return of double digit interest rates in the not too distant future.

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I read an article yesterday where Charles Schwab said inflation and hyperinflation are OK because we have proven tools in the U.S to combat those.

I am curious about those tools. What are they? Can the BP economists here explain them? I know it's way early for this discussion since we're deflating; but what the heck...

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Originally posted by MikeOH:

I would go one step farther and say that almost NO-ONE is retiring on the cash flow from a handful of properties. You must have a BUNCH of properties if you want to quit your day job and even more if you want to retire hands-free.

However, if you do make a living off the cash flow, you can not help but gain a lot of wealth. It's virtually impossible to have positive cash flow without significant equity in each property. You'll almost certainly be a millionaire if you have enough properties to live off the cash flow. Unfortunately, being a millionaire won't even buy you a bag of McDonaldland Cookies. You can't eat wealth, but you can eat with cash flow!

Mike

This is what I agree with. It is my REI goal. Though I am currenly seeking 'not to hood.' The RE investors I know who have exactly what I want own a number of quality properties (good areas) free and clear. Say 30 properties for one guy I've met at an REI club. And yes, he tells stories of how he got/gets reprimanded by his fellow collegue leveragers for paying his stuff off. And the payoff was pre bubble burst. Sounds like they're all drinking pals anyway. Either way, he is fine with his lashing and seems to be happy with life. However, I have a friend who is doing to 'to hood' here in south central los angeles. He loves it. They are both hands on investors that only invest locally.

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Originally posted by Tim Wieneke:

Originally posted by Matty M:

Probably very close to your views economically, but liberal views socially. The closest to the views of our founding fathers to be exact; as compared against modern liberalism and modern conservatism.

I'm going to have to disagree with you on that Matty. I think they would have agreed with the libertarian viewpoint on individual rights and highly limited government but to apply the social liberal views of today to them is very much a stretch, especially when you consider what John Adams described as a "utopia" - a country where the law of the land is the Bible.

But we're getting off topic. Either way I don't think there is a single founding father (with the exception of maybe Hamilton....hmmm, maybe Burr helped us out after all) who could support this government sponsored grab of the private sector.?

I am rolling with the separation of church and state on this one. Modern conservatism is the opposite. So we do disagree there. I agree I have taken the thread off topic. But I welcome a discussion about it somewhere else. I also like that Ben Franklin is quoted as saying: "I am wrong more often than I am right". That can definitely be applied to me. I believe that perspective facilitates healthy discussion.

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Originally posted by Tim Wieneke:

If ye love wealth better than liberty, the tranquility of servitude better than the animating contest of freedom, go home from us in peace. We ask not your counsels or your arms. Crouch down and lick the hands which feed you. May your chains set lightly upon you, and may posterity forget that you were our countrymen. -- Samuel Adams

Also, that Adams quote is great. Here is one of my favorites:

"If the America people ever allow private banks to control the issuance of their currencies, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their prosperity until their children will wake up homeless on the continent their fathers conquered." - Thomas Jefferson

It is my hope that one day all Americans will know that the Federal Reserve is no more "Federal" than federal express. Much more private, to the point where congress cannot audit its books.

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All Forum Posts by: Account Closed

Account Closed has started 30 posts and replied 510 times.

Post: Congrats to Moderator Jon (Wheatie)!

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Post: Fighting Inflation and Hyperinflation

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