I'm sorry. You were saying? :)
Posted on 04/10/2010 6:04:52 PM PDT by blueyon
Even as prospects for the American economy brighten, consumers are about to face a new financial burden: a sustained period of rising interest rates.
That, economists say, is the inevitable outcome of the nation’s ballooning debt and the renewed prospect of inflation as the economy recovers from the depths of the recent recession.
The shift is sure to come as a shock to consumers whose spending habits were shaped by a historic 30-year decline in the cost of borrowing.
“Americans have assumed the roller coaster goes one way,” said Bill Gross, whose investment firm, Pimco, has taken part in a broad sell-off of government debt, which has pushed up interest rates. “It’s been a great thrill as rates descended, but now we face an extended climb.”
(Excerpt) Read more at nytimes.com ...
Dave Ramsey
Congress screws things up again.
I'm sorry. You were saying? :)
If the NY Times is FINALLY sitting up and taking notice at the dire straights we’re in, there ARE black clouds on the horizon!
Woohoo! Time to lend my stash and charge high interest. I may become a loan shark with over 80% interest rate.
Is it too late to buy gold?
Doesthat mean that CDs and interest rates on savings will rise also?
No joke, becoming a lender pays WAYYY more interest and points than sticking it in a CD, or a traditional IRA and many times more than a 401k, since they can be losers right now.
Self directed IRAs can be opened THIS YEAR and you can lend and manage your own future. (only you can’t keep one penny of the earnings or it can be ugly)
I this happens, bond prices will go down and stock prices will go down. Stocks, because of their earning power, would be a better pick.
Fine with me. I don’t owe one red cent to anybody, for anything. No mortgage, credit card debt, car loan, student loan, store charge cards, nothing. In another week or so, my wife and I will be closing on the little house we’re buying with 100% cash, so I won’t even be owing anyone rent anymore.
And to think I used to be a credit junky. Used to have a big house with 2 mortgages, 2 car loans, a boat mortgage, 3 or 4 store charge cards, and 5-figures worth of credit-card debt.
Screw debt. This feels much better. Turns out I don’t actually need to keep up with the Jones’ after all.
I hope everyone was doing everything possible to reduce their personal debt. We’re almost at the point which our only debt is our 20 year fixed mortgage at about 4.75%, which we’re in year 7. A few small credit cards are left. After that, it’s strictly cash only.
Will you adopt me?
Yes, see interest goes to the banks we bailed out. DNC supporters, but...
NYT however is silly - low interest means low deductions - more tax revenue to gov so this is a win win until they change the law.
I have about 3 years left on my home. All credit cards are paid off and closed, but one (almost can’t rent a hotel room without one and for emergencies when travelling), and it has a small limit. Vehicles are paid for. Still today, a person can’t just retire, you still have to pay taxes, personal property taxes, insurances, utilities etc. Taxed til AFTER you die! In my state they even tax the dog!
We’re right there with you! You never are “all clear” because of property taxes and all the other garbage they keep you chained to.
Carter’s fault ....
My grandfather was paying taxes for 30 years after he died.
Why? Because this taxation goes directly to your local government, without getting skimmed by the various layers of state and federal government bureaucracies. Your local city or town government is also the most directly controllable and accountable form of government, as it is easier to become involved with and be heard by your local government than your state or the federal government.
It's also easier to see exactly where and how your local taxes are being spent. Plus, with the exception of national defense, your local government provides the majority of the essential services that most folks accept as legitimate purposes of government: police and fire, road maintenance, public education.
Why do we even need such bloated, parasitic state and federal governments anyway? I'd rather pay more property taxes and keep more direct local control of essential services, and get rid of the huge state and federal bureaucracies.
We wouldn't be having these problems with government employee unions run amok if we kept more direct local control via property taxes. The only reason they have become so powerful and unsustainably expensive is because they have become nationalized, along with alot of their funding which gets laundered through the central government.
Decentralization of government is what we need.
Ha ha and in your face, New York Times. I never used any credit, cheap or otherwise. Now sit on it and rotate.
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