Financial Repression Has Come Back to Stay: Carmen M. Reinhart

[c1ue]

Re: Financial Repression Has Come Back to Stay: Carmen M. Reinhart

I expect them to keep bumping the age up. When I forst started working my SocSec was supposed to be at 65, now it is at 75, though I don't count on ever getting any ot it (or it being worth anything). At some point another 'commission' will come along and bump the age up to 72, then 75, and they'll find a way to tag Medicare in there as well.

I expect this also - it occurred once already.

However, I expect the 'bump' to both exclude existing 'borderline' recipients - i.e. those 60+, as well as to be some date in the future where the boomers are already 'out of danger'. This is solely due to the political patterns; the 45+ today will fight hard politically for what they perceive as something they already paid for, while those who will be paying in the future will be the ones who will see reduced actuarial benefits.

[charliebrown]

Re: Financial Repression Has Come Back to Stay: Carmen M. Reinhart

The cost is just too high. If you have a 400K house, even if the interest rate was zero, you are going to pay about $1200 a month on a 30yr. Last time I checked
with my friend in sunnyvale this was the going price for a small 1950's house, on a good street. add utilities, taxes, maintenance etc, and a stinky job market
and it is still hard to afford. And a low price only effects first time buyers or move up buyers. Otherwise you are trading one low priced house for another.
Your old house is probably underwater, so you have to do a short sale, walk away, or pony up a big bundle of cash at the sale.