Economic crash worse than in 2008?

There is a lifespan to everything. A new roof can be $5000 or more. A new HVAC is $5000. Appliances wear out. Homes require a lot of attention. Now if you rent all that is taken care of. If you own that money comes out of your pocket. It's quite a balancing act.

 

Thats all fine, ive said my piece on it.

If we are just talking personal perspectives, i spend every dollar as quick as i can because they dont hold their value at all when the printing press runs red hot. Everything ive bought has gone up in value. Inflation erodes my earnings much less than the cash hoarder. No it isnt a perfect system but works for me better than conventional advice.

 

And if you overpay the mortgage for 9 years then have a financial problem during a down market you lose it all and get 7 years bad credit just like me. That house was a great purchase price at the time but it still proved a liability. I lost every cent that i put in it and the credit hit cost money even beyond the time i owned it. Higher insurance and so forth.

Future value is one in the hand and 2 in the bush.

Say you buy severed mineral rights with cash, then lease the rights to a contractor on a monthly basis. Thats buying an asset. You HAVE the money and can generate monthly revenue beyond the monthly expense. Houses are a quasi asset that can go either way.

To call them an asset corrupts the definition of an asset. If a house is an asset so is a car or motorcycle. Good luck with that investment program.

 

I'm not saying it can't happen. But for most, outside the bubble of '08, gain w/home purchase. I did. Right b4 the '08 issue. I saw it coming.

 

At the end of the day taxes will go up to pay for these bailouts. Sadly they will never go down. Govt uses crisis to raise taxes . Corporations do the same on goods and services. Look for Freightliner to raise shop rates another 15hr do to corona virus. Meanwhile rates continue to drop

 

You'd be naive to think otherwise. Don't be shocked when your income tax rate jumps 15-20% next year.

 

Unfortunately, it's going to get worse before it gets better.

What is becoming apparent is the second wave of layoffs is just beginning, and those are the white-collar folks who were sent to work from home in March and April. Uber laid off 3700 via the Zoom app yesterday.

The reality is, whatever their employer does to make revenue, said revenue is way down and what invoices are owed, aren't getting paid.

Hertz is expected to flood the already dropping (-11%) used car market with countless used cars, depressing prices even more. Other rental agencies will likely reduce their inventory as well due to the lack of travel.

Boeing's CEO's projects at least one US airline to file bankruptcy by the Fall.

Manufacturers are closing their doors forever by the dozen (yesterday's WSJ).

 

Dealer is trying desperately to get me to trade in my 3 year old pickup. For $58k they can stick it. Don't feel like writing a cheque that big lol.

 

Not arguing but just adding if he lived in it he won’t have to pay taxes on the gain.

 

I did my part yesterday. Went out and burnt up some gas and had a big lunch at the local restaurant. Felt good to eat in an establishment again.