National Inflation Association Attacks Dave Ramsey‏

[c1ue]

Re: National Inflation Association Attacks Dave Ramsey

You probably would not believe this -- but the smartest and richest people in the world now are grabbing up real estate(not for living in) at rock bottom prices say nickels and dimes on the dollar - maybe quarters.

Perhaps you might provide some concrete examples.

For one thing, while prices have dropped 30% overall and 50% in some areas, it is extremely unlikely anyone is getting anything for 5% or 10% of peak prices - except in Detroit.

And all the examples I've investigated - the purchase price was a fraction compared to the outstanding taxes owed and/or deferred maintenance required.

I find it extremely hard to believe that this is the best time to buy when interest rates are at historic lows.

In contrast the best time to buy real estate for cash is generally when interest rates are at historic highs: the prices are inverse and many fewer people are able to qualify for loans.

But I'll freely admit my experiences are anecdotal - by all means provide some concrete examples of yours.

[karim0028]

Re: National Inflation Association Attacks Dave Ramsey

I agree with Clue... Not that it really means much to agree But, in reality you can make a killing buying RE when interest rates are high like the 80's, save up cash and buy when interest rates hit the stratosphere.... Just think of it this way, interest rates are at all time lows and prices are still falling.... What do you think happens if/when rates go to 10-20% like they did in the 80's? Lots more ARM's reset, defaults galore and prices falling to match income and monthly payment affordability, since i highly doubt that incomes will rise accordingly....

All markets revert to the mean and in the process overshoot... The interest rate market is no different. I have no doubt in my mind interest rates will match the 80's, just the same way gold went to 250 and then hit and surpassed its all time 1980 high of 850... Its a matter of WHEN not if....

But, having said that, i also believe that if you know how to put a deal together you can make money in almost any environment... So, i dont doubt that Cindy could find deals that are worth pennies on the dollar, and can make a killing via cash flow... That stands for almost any environment.

[Starving Steve]

Re: National Inflation Association Attacks Dave Ramsey

On one point, I agree with Arthur Laffer and John Maynard Keynes: THERE IS NOTHING MORE INFLATIONARY THAN LETTING SOMEONE's TALENTS GO TO WASTE THAN TO LEAVE THEM IN THE UNEMPLOYMENT LINES TO STARVE AND TO ROT.

The great lesson from the 1930s is that PRODUCTION AND INNOVATION DE-FLATE THE MONEY SUPPLY.

Some things that stimulus spending--- when properly and prudently spent--- produced in the 1930s: THE HOOVER DAM, THE BONNEVILLE DAM, THE TENNESSEE VALLEY AUTHORITY, THE EMPIRE STATE BLDG, ROCKEFFELLER CENTRE IN NYC, THE GOLDEN GATE BRIDGE, THE SF-Oakland BAY BRIDGE, THE NELSON RIVER PROJECT in Manitoba, THE WIND-BREAKS ON THE GREAT PLAINS, THE PAVED ROADS DURING THE DEPRESSION, among many other achievements.

The subtle point is that the lessons of the 1930s have been forgotten by the so-called "liberals" of to-day, including Bernanke himself. Bernanke is using unemployment and starvation as a way to fight inflation..... Why can't the Demos recognize this fact? Hoover economics lives-on in the Democratic Party of to-day.