tag:blogger.com,1999:blog-2807403883562053852.post5624761537246886240..comments2024-03-27T08:40:31.785-06:00Comments on Clayton Cramer.: Today's Painful Financial LessonClayton Cramerhttp://www.blogger.com/profile/03258083387204776812noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2807403883562053852.post-60326983507866735662018-11-01T09:56:26.925-06:002018-11-01T09:56:26.925-06:00Will: My Social Security Disability check is an gu...Will: My Social Security Disability check is an guaranteed as anything can be said to be. The income from my IRA is not so much.<br /><br />For a while realtors in the Boise area flew speculators in from California and took them around in buses. Some bought 40 houses in a trip. The results by 2010 were horrifying.Clayton Cramerhttps://www.blogger.com/profile/03258083387204776812noreply@blogger.comtag:blogger.com,1999:blog-2807403883562053852.post-15838692264843298132018-10-31T15:21:07.787-06:002018-10-31T15:21:07.787-06:00One reason to pay off the mortgage now would be th...One reason to pay off the mortgage now would be the potential loss of some of your income that a severe economy upset could cause. Paying it off over time with decreasingly worthless dollars is all well and good, providing you have a guaranteed income. Such an entity is looking to be a vanishingly rare item. Better to have a roof over your head that is paid for, than being in the position of trying to find a buyer in the equivalent of the Great Depression or worse.<br /><br />A friend lived on a street of $2M+ McMansions in San Jose that were only a few years old when the Obama crash hit. Lots of those houses were sold at short sale for ~$600k. People were dropping off the keys at the bank and walking away. 10 years later, they are just reaching the same price as they were new. I suspect that a fair number of those were speculators caught in the process of flipping them.Willhttps://www.blogger.com/profile/00722792638246578812noreply@blogger.comtag:blogger.com,1999:blog-2807403883562053852.post-66972060930231179892018-10-30T21:56:00.728-06:002018-10-30T21:56:00.728-06:00Probably true. But the Fed increasing interest ra...Probably true. But the Fed increasing interest rates may also be virtue signalling to the rest of the Swamp. I think inflation remains a very legitimate concern, but over the remaining several years of the car loans, that is not as valuable as having $2000 surplus each month. The mortgage is another matter: it has 18 years to go and it is an ARM, so rising interest rates are going to make it increasingly painful.Clayton Cramerhttps://www.blogger.com/profile/03258083387204776812noreply@blogger.comtag:blogger.com,1999:blog-2807403883562053852.post-28625631052685344342018-10-30T18:27:31.045-06:002018-10-30T18:27:31.045-06:00But... if inflation increases a bunch, which bonds...But... if inflation increases a bunch, which bonds may be signaling, it's better to have cash and be paying interest on old loans with devalued dollars than to have paid them off.StormCchaserhttps://www.blogger.com/profile/02998174514362089471noreply@blogger.com