Started by James Hayes6 · · 👁 6 views · 59 replies
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driftingtinker said:So what, because interest rates suck, we should just go out and blow our cash instead of saving?
briskdrifter3 said:Look, I am simply observing that interest rates are low... I am certainly not advocating for mindless spending—quite the opposite, actually—I am trying to determine the most prudent way to save, but unfortunately, it seems that across all the major banks, savings rates are embarrassingly meager. When one actually sits down to run the numbers, it becomes clear that I am essentially losing money.
And things are likely to get even worse:
The moment there is talk about negative interest rates, it means they are well on their way to implementation. The article mentions that the Federal Reserve has seen rates hit -2%. Of course, that applies to commercial banks rather than individual citizens, but the momentum is already there. The banks will eventually force us to spend because keeping money in savings simply won't pay off anymore. Just take a look at your own checking accounts; you are already seeing a NEGATIVE yield because those various service fees and "account package" charges are significantly higher than any interest earned on a balance comparable to what a typical American worker earns. Between my two accounts over at JP Morgan Chase and Wells Fargo, I am losing money just by being a customer... the fees alone are enough to kill any potential gains.
driftingtinker said:So you’re basically using all that as an excuse to say that in this absolute circus of an economy, there’s no point in being frugal... I guess you think it’s just common sense to take out a thirty-year mortgage on some house, even though nobody has a clue if things will even be standing next month, let alone a decade from now.
William Richardson2 said:It's interesting how you have this constant need to blame everyone else for everything—usually the banks. So, let me get this straight: you aren't saving because you *have* to take out a mortgage instead... But suddenly, you've realized (whether it was you or someone else, doesn't matter) that you could actually be saving, yet now it's all the banks' fault for making it difficult. 🙄
You have literally hundreds of different financial instruments and savings options available to you—claiming it's "impossible" to save because of what was mentioned above is absolutely ridiculous.
If you want to save, you find a way to save. If you don't, you'll just blame everyone else and invent a hundred different excuses for why you can't. ☕
briskdrifter3 said:Look, try viewing it from the other side. It is precisely because the situation is so volatile that it makes more sense to buy a home via a mortgage right now, rather than trying to save up for twenty years just to finally afford one.
Just ask the people who kept their money in those local savings banks back in the 90s... or ask those who used credit unions during the late 90s bubble... or even ask me—I've had money sitting in Chase Bank since last year—though, fortunately, I had government-backed insurance, so I managed to recover about 95% of my deposit. And don't even get me started on the financial gymnastics... the constant currency shifts, moving from different denominations to the Dollar... through every single conversion, the average American gets absolutely fleeced. Just ask anyone around you how much actual value they lost. Even the transition to the current standard wiped out a massive chunk of what people thought was real savings.
It turns out that in the last 22 years, there hasn't been a single ten-year stretch where your savings were left alone by financial tremors—whether they were global meltdowns or local collapses.
By your logic, someone who started saving 25 years ago—back in 1987—should theoretically have enough cash right now to buy a house outright without a loan. Does such a person exist?! Can you give me one example? JUST ONE? And please, don't count the private criminals who built wealth through tax evasion and theft... I mean a regular person, a worker at some standard firm.
Interest rates keep dropping lower and lower, and I see absolutely no upside to long-term saving when we are almost certainly going to be hit by at least one more major financial crisis in the next 20 years that will devalue everything we've put aside. I’m not advocating for reckless spending, I am simply... fearful, for myself and for my family. Our pensions will end up being a joke—given how pension funds are managed, losing money instead of actually growing it—and our savings will be gutted, leaving us essentially destitute.
Alexander Thompson said:Well, I mean, I guess the banks have a right to complain a little bit too... 😬
Charles Ramos7 said:To me, this just proves how many people were taking out loans they couldn't actually afford.
Dennis Myers6 said:@AndrejX
Who even are you talking about here?
Maybe give us a little more context... okay?
(Actually, don't bother. I mean, looking at your history, you're definitely one of those "divide and conquer" types, whether we're talking about cooking tips or the US Air Force. You never actually commit to an opinion, which I guess is fine since someone’s gotta play devil's advocate, I suppose. Peace.)
Jamie Newman5 said:He’s probably talking about how people went all in on those massive loans, acting like money grows on trees, and now suddenly everyone's bringing up their kids and their future when they face foreclosure on those same apartments they're being kicked out of...
Dennis Myers6 said:@AndrejX
Who even are you talking about here?
Maybe give us a little more context... okay?
(Actually, don't bother. I mean, looking at your history, you're definitely one of those "divide and conquer" types, whether we're talking about cooking tips or the US Air Force. You never actually commit to an opinion, which I guess is fine since someone’s gotta play devil's advocate, I suppose. Peace.)
briskdrifter3 said:Are you planning on throwing families—people with actual children—out onto the streets? Because there are thousands of them out there... just waiting for a break. And how exactly do you intend to explain that to a five-year-old? "Look, kid, your old man was just being a greedy idiot when he signed those mortgage papers, so now you have to leave your bedroom behind. Take your teddy bear if you want..." It’s just... well, it's beyond absurd.
Look, if you’re going to stand there spilling nonsense about contracts, banking regulations, profit margins, and the sheer depth of human stupidity—then honestly... just keep it to yourself.
My suitcase is practically overflowing with nothing but excuses from the banks—just endless, hollow justifications for their blatant highway robbery...
Dennis Myers6 said:Man, I guess on this thread it’s just banks whining about how they're gonna claw back those $6 billion in bad debt assessments (including the treasury bonds).
🙂
| neno1966 As stated by: Everyone here seems to be operating under the flawed assumption—and I use that word intentionally—that these loans were just pulled out of thin air yesterday. It’s a ridiculous premise. 🙂 Let’s look at the reality of mortgage debt—those loans taken out a few years back. A massive chunk of that principal has already been paid down by now. Plus, if we’re being honest about the market, most of those properties could probably be offloaded almost instantly for, say, half of their actual value. When you run the math, the "unrecoverable" portion of the debt—the part where the bank actually loses its shirt—is significantly smaller than the alarmists want you to believe. Even then, the bank would still be legally entitled to pursue the client for that remaining gap. It’s simple arithmetic, really. ☕ |
