Oso planning to go pro
Inflation is definitely a reason why house prices have increased rapidly. But a shortage of homes, particularly at the entry level, has been a problem that has worked to increase the cost of real estate even before the pandemic.Also, less homes are on the market these days because of the rise in interest rates. So buyers have to be much more aggressive when a house they like gets on the market.
TSmithThe Fed raised rates 11 times because they had an overheated economy, mainly because of a very inflated stock market and real estate market. I am open to any comments on why those two assets had historic growth in value other than Fed printing money and QE. I might 100% wrong and would welcome reasons why 2020-2021 happened in those two markets.As for Trump, my question was the previous three years, not prior to that. That said, I thought Trump was off his rocker wanting lower rates and how he treated Powell and I don't like Powell.
And I would suggest that the sharp rise after 1995 was fueled by bad mortgages
Back to investing. Who do people like for AI investments? Alphabet and Microsoft seem obvious, any other small players?
Oh 100%. On a percentage basis, pretty much more people own homes than ever before - excluding when mortgages were given out to people who had no reason getting them.Funny side note: With my first house purchase in 2005, I was one of those no-doc mortgage losers, that probably had no reason buying. I worked for a startup at the time, had great credit, but intermittent income. But from application until closing Chase only ever pulled my credit report. Of course, I'm cautious and even payed off my loan in 10 years, but in theory they probably never would have given me a loan if they had ever asked for pay stubs!Back to investing. Who do people like for AI investments? Alphabet and Microsoft seem obvious, any other small players?
Sure, we had to put up with a lot of documentation requests and sometimes double checking of our submittals, but the end result was good.
This is quite a difficult question as real monetization of AI is still out there quite a bit. However, I'm thinking that, for now, continued success by the mega caps is one way to play AI. After that, NKN (Nobody Knows Nuthin)
HardsI do think the government’s non stop printing of money has consequences. It has been a great thing for the stock market and a nice segment of people benefited from that. IMO, that has come with a very big cost to the overall economy.There were/are a lot of things broken in our economic system and that is troublesome from my perspective. First, I believe making money is hard and easy made money is not a long term positive. For argument sake, if someone had a $500k in their retirement plan and was 100% in the S&P this year, they made roughly $125k. That $125k makes people feel smarter than they are and reckless spending is east do if you think you are smarter than you really are.That is great for them, but many took years or decades to hit $500k and that $125k windfall changes perspective on one’s wealth. Spending habits change, thinking you can help grown children comes into play and it changed the overall economy.I have said on here many times that a very smart man once told me that if you do not think $100k is a lot of money, see how hard it is to save $100k. The divide in society continues to get larger and the cost of living is in a dangerous position, imo.I am going to admit, my thinking of how an economy should function is probably outdated and it took me a long time to admit that. That said, I believe the “new” economy is dangerous and will create a bigger divide between the classes. Fortunately, I am 60y and still have time to accept the changes and adjust my thinking and plans. I’m hopeful that my grown kids can create their own wealth, whatever that means to them, and live the life they want to live. That said, I think this is the toughest time in my lifetime to know is the best path forward for younger people.My kids, three own homes/condos, have made good decisions and that is great. Now, all are looking to upgrade and the cost is out of their price range. IMO, some of that is due to the person that made a $125k in their retirement plan and think they can bankroll a home purchase for their kids. Hence, home prices for younger people who cannot afford it and the $125k for older people was put at risk.To sum it, I think the American Dream is the greatest idea/concept in the history of the world on the economic front, but I think it is so messed up because of the government bailouts that my kids will never fully understand why it is the greatest economic idea ever.For the record, I have never, never wished for an economic catastrophe and always want as many people as possible to prosper. That said, I have no idea how this economy works today without government intervention. That troubles me.
I have said on here many times that a very smart man once told me that if you do not think $100k is a lot of money, see how hard it is to save $100k. The divide in society continues to get larger and the cost of living is in a dangerous position, imo.I am going to admit, my thinking of how an economy should function is probably outdated and it took me a long time to admit that. That said, I believe the “new” economy is dangerous and will create a bigger divide between the classes. Fortunately, I am 60y and still have time to accept the changes and adjust my thinking and plans. I’m hopeful that my grown kids can create their own wealth, whatever that means to them, and live the life they want to live. That said, I think this is the toughest time in my lifetime to know is the best path forward for younger people.To sum it, I think the American Dream is the greatest idea/concept in the history of the world on the economic front, but I think it is so messed up because of the government bailouts that my kids will never fully understand why it is the greatest economic idea ever.
The concept of the American dream being equally achievable to all is a great way to get people to keep driving the economy forward for the lucky few
Well, this sucker still believes in the American Dream, just harder to navigate. I am going to continue to chase that dream until my last breath. Now, I have learned that it is far harder than decades ago and am going to do whatever possible to make it happen. I might end up woefully short and that is life.