INFLATION--FED's cutting rates again...
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Monahorns
10,000+ 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.
Auto prices likely have topped:
Car Dealerships Finally Have Inventory, Potentially Leading To "More Pricing Pressures" | ZeroHedge
Car Dealerships Finally Have Inventory, Potentially Leading To "More Pricing Pressures" | ZeroHedge
Prices for new cars are absolutely atrocious. The average price for a new car is approaching $50K. Folks are being forced to take out 7-year loans to get monthly payments near affordability. They will be upside-down on their loan when they trade in the car. This vicious cycle can't continue.
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.)
Like I said, I'm not judging anyone, but I can't see myself doing that.
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.
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.
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.
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.
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.
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.
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.
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?
So inflation is good?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?
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.
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.
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?
Monahorns
10,000+ 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.
Maybe his broker’s mind isn’t clouded with kooky ideas.
Monahorns
10,000+ Posts
Or maybe he is a kooky boomercon
What's a boomercon? Some new LGBTQWERTY type of freak?
Monahorns
10,000+ 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.
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.
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.Monahorns will like this.
As long as you understand that bitcoin is a glorified Ponzi Scheme, have at it.
Monahorns
10,000+ Posts
Tell me you have absolutely no inkling of an idea of what bitcoin is without saying it.
Monahorns
10,000+ 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.
Or the "printing" power of the Fed Gov't.
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