Just in:Freddie Mac interest rate on 30-year mortgage just hit an all-time low: 4.72%

[Nick Gromicko]

Great time to buy a home.

[Michael Larson]

Originally Posted by gromicko

Great time to buy a home.

When prices are still dropping?

Watch the price trends in you own area before buying folks.

Here it is for a popular community in my area.

Nearest Metro Area..............Minneapolis-St. Paul
Buyers’ or Sellers’ Market......More sellers than buyers
Market Trend(Bloomington).....Decreasing

Price Trend(US)

[Nick Gromicko]

Borrow all they'll lend you and pay it back with worthless paper money in a few years. Inflation is going to hit hard. Now is the time to be in debt. Dave Ramsey is a bozo.

[Michael Larson]

Originally Posted by gromicko

Borrow all they'll lend you and pay it back with worthless paper money in a few years. Inflation is going to hit hard. Now is the time to be in debt. Dave Ramsey is a bozo.

Who is Dave Ramsey?

Hyper inflation will be hard to pull off as long as US government debt is denominated in our own currency.

On top of that all the entitlements are indexed to inflation so we can never get ahead of the debt we are accumulating and that is the very purpose of an intentional inflation policy.(paying down debt with worthless currency)

Now if we start issuing debt in some other currency then chaos will commence.

You should also be asking yourself this:

If a bank anticipates hyper inflation why would they lend you money at cheap rates knowing they would be the losers?

There is no free lunch gentlemen.

[Nick Gromicko]

You should also be asking yourself this:

If a bank anticipates hyper inflation why would they lend you money at cheap rates knowing they would be the losers?

Because they only have to hold the note for a few hours.

4.72% is about the real inflation rate, which means you can now borrow money for free.

Dave Ramsey is a bozo on cable TV who advises the poor to become poorer by paying off debt and saving soon-to-be-worthless paper money.

[Michael Larson]

Originally Posted by gromicko

Because they only have to hold the note for a few hours.

4.72% is about the real inflation rate, which means you can now borrow money for free.

Dave Ramsey is a bozo on cable TV who advises the poor to become poorer by paying off debt and saving soon-to-be-worthless paper money.

I assume you mean they(banks) dump it off to fannie and freddie.

If that continues they will bankrupt the government and that will not end well. It may already be to late.

BTW I apparently took Dave Ramsey's advice without knowing it.

Apparently Larry Burkett preached a similar message. It worked.

Funny, I don't feel poor.

[Nick Gromicko]

I know what you mean. I have a friend who was bragging to me that he paid off a 1.9% dump truck loan early. I didn't have the heart to tell him how much money he lost by paying down the debt.

[Michael Larson]

Originally Posted by gromicko

I know what you mean. I have a friend who was bragging to me that he paid off a 1.9% dump truck loan early. I didn't have the heart to tell him how much money he lost by paying down the debt.

Not bragging on my part but it is a centuries old successful concept.

Well I agree with you on this one.

Paying off 1.9% is dumb as long and real inflation is above that.

That said you have convinced yourself that hyper inflation is imminent.
I think it is a wrong conclusion at this time for the reasons I stated.

Things may change in the future but for now the hyperinflation argument looses.

If you can figure a way to not pay inflation indexed entitlements then the game changes.

Another thing to watch for is the fed being forced to offer higher interest rates to sell treasuries.(add debt)

Effective rates of zero have been in place for a long time now and also continue in Europe. It's a giant game of chicken.