MSNBC: Household debt tops $16 trillion for the first time, fueled by higher inflation and interest rates
POSTED BY: 6IXSTRINGJACK
UPDATED: Monday, May 19, 2025 16:00
VIEWED: 1799
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Quote:There is a list of the executive orders. None do what you claim, 6ix. Too bad, so sad, for you.
Originally posted by 6IXSTRINGJACK:
Joe Biden* doomed Americans to this economy with the Executive Actions he signed the first day he was in office.
Fuck off with your constant gaslighting, liar.
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Falsus in unum, falsus in omnibus
2021 Joseph R. Biden Jr. Executive Orders view all Presidential Documents
https://www.federalregister.gov/presidential-documents/executive-order
s/joe-biden/2021
The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at https://www.mediafire.com/two
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Quote:
6IXSTRINGJACK:
VOX: The inflation prices that broke us
Keep that inflation coming, Joe.
SECOND: This is a graph of inflation in percent for Natural Gas. How can anyone, other than a buyer of natural gas, see this as anything but a huge benefit for sellers of natural gas? Capitalists earned these rewards.
How? By "working hard"?
OR by sitting on top of resources like a junkyard dog?
That's not "real capitalism", that's "rentier capitalism".
You even posted about it as a bad thing.
Apparently you don't even know what you're posting.
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Pity would be no more,
If we did not MAKE someone poor - William Blake
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Quote:Sorry to tell you this, but the President of the United States is powerless against real or rentier capitalism. Too bad, so sad, for those who have nothing (except on rare occasions such as a garage sale or estate sale) to sell nor to rent, but they buy (several times a week) and pay rent (once per month).
Originally posted by SIGNYM:
How? By "working hard"?
OR by sitting on top of these resources like a junkyard dog?
That's not "real capitalism", that's "rentier capitalism".
You even posted about it as a bad thing.
Apparently you don't even know what you're posting.
The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at https://www.mediafire.com/two
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Second is an idiot that just likes to be argumentative with everyone.
It's a godsend to his family that he hasn't gotten both of his handles banned off of here.
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Falsus in unum, falsus in omnibus
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Quote:When did you come to believe the marketplace sets prices? People who own the business set prices, not some abstract market mechanism described by Adam Smith 250 years ago. All real Capitalists know how to trick their way around the so-called iron rules of competition in The Wealth of Nations. Today's Capitalists know how to set their prices to benefit only themselves, not to waste money benefiting their fellow citizens.
Originally posted by 6IXSTRINGJACK:
Second is an idiot that just likes to be argumentative with everyone.
It's a godsend to his family that he hasn't gotten both of his handles banned off of here.
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Falsus in unum, falsus in omnibus
6ix, the Capitalism of today is not the Capitalism described by Adam Smith:
Adam Smith and "The Wealth of Nations"
By Adam Hayes
Updated June 08, 2022
Reviewed by Michael J Boyle
Fact checked by Ryan Eichler
What was the most important document published in 1776? Most Americans would probably say "The Declaration of Independence." However, many would argue that Adam Smith's The Wealth of Nations had a bigger and more global impact.
On March 9, 1776, An Inquiry into the Nature and Causes of the Wealth of Nations—commonly referred to simply as The Wealth of Nations—was first published. Smith, a Scottish moral philosopher by trade, wrote the book to describe the industrialized capitalist system that was upending the mercantilist system.
Mercantilism held that wealth was fixed and finite. The only way to prosper was to hoard gold and place tariffs on products from abroad. According to this theory, nations should sell their goods to other countries while buying nothing in return. Predictably, countries fell into rounds of retaliatory tariffs that choked off international trade. Trumptards think Mercantilism is best.
https://www.investopedia.com/updates/adam-smith-wealth-of-nations/
The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at https://www.mediafire.com/two
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Quote:
Originally posted by second:
6ix, the Capitalism of today is not the Capitalism described by Adam Smith:
Apparently it's not the same as the Capitalism from early 2020 either.
Hmmmmmmmmm....
What happened in 2020?
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Rates just went up another .75 yesterday, with more expected this year into next year.
When I get a moment I'll update the numbers.
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Falsus in unum, falsus in omnibus
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Quote:
Originally posted by 6IXSTRINGJACK:
Interest on a 30 year mortgage in a very plausible future of 6.75% for a $250,000 home with $25,000 down payment ends up being $300,364.46. The buyer's monthly mortgage payment is now $1549.35. Total cost of your $250,000 home now costs the buyer $525,364.46 after 30 years. Total interest payments over 30 years are now 120.1% of the appraised value of the home.
This is not tenable. The $250,000 appraised value of your home is untenable.
Not only a plausible future, but one we already live in not even 2 months after I made this statement.
Quote:
And I hate to break it to you, but even 6.75% for montage rates is fairly low, historically speaking. Between 1971 and one brief moment in 1998 you never even saw a rate that cheap. It wasn't until the 3rd quarter of 2002 that rates finally dipped below that number and have never been that high again.
(Verify the above statement here: https://fred.stlouisfed.org/series/MORTGAGE30US )
Ripples...
The Joe Biden* economy was the final nail in the coffin for 25 years of extreme mismanagement of the economy by Washington elite on both sides of the aisle.
If you're not already prepared, you'd best start preparing while you still can.
Winter is coming.
So... the update:
Now the average rate of a 30 year mortgage is 7.075% for someone with a credit score between 700-719.
Somebody buys your $250,000 house on September 23rd of 2022.
Now, assuming they make no additional payments in 30 years, somebody has 10% down with a 30 year fixed mortgage at 7.075%. Their monthly mortgage payment will be $1,508.28 (Up from $1,278.94 in July). They will end up paying $317,981.13 in interest (Up from $235,417.53 in July). The total cost of that $250,000 house you sold will be $542,981.13 (Up from $460,417.43 in July).
Do you still believe your $250,000.00 house is worth $250,000 when somebody has to pay over half a million bucks for it?
You can bet your ass your local tax authority is going to say that it is. You should fight that when appeal time comes.
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Falsus in unum, falsus in omnibus
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Quote:
Originally posted by 6IXSTRINGJACK (August 5th, 2022):
The housing market crash I predicted (incorrectly) back in the late aughts is the one that's going to happen right now. Sure... We had a housing market crash back then, but that was speculative bubbles bursting everywhere.
THIS [meaning high interest rates] will be the reason that the housing market crashes again now.
In December 2021, a 30 year mortgage rate was 2.70%
In July 2022 it was 5.51%
Let's do some math, (You can verify it here https://www.drcalculator.com/mortgage/ ), assuming that the house you own and are looking to sell is appraised at $250,000.
Assuming they make no additional payments in 30 years, somebody who bought your house in December of last year at a rate of 2.70% will find their monthly mortgage will be $912.59. They will end up paying $103,534.07 in interest. The total cost of that $250,000 house you sold will be $328,534.07 for them.
Now, assuming they make no additional payments in 30 years, somebody has 10% down and wants to buy it in July of this year with a 30 year fixed mortgage at 5.51%. For that same house, their monthly mortgage payment will be $1,278.94. They will end up paying $235,417.53 in interest. The total cost of that $250,000 house you sold will be $460,417.43.
Do you see where this is going yet?
Interest on a 30 year mortgage back in December for a $250,000 home with $25,000 down payment ends up being 41.4% of the appraised value of the home.
Interest on a 30 year mortgage last month for that same $250,000 home with $25,000 down payment ends up being 94.2% of the appraised value of the home.
The buyer is now going to be paying nearly double the appraised price of the house over 30 years with a 5.51% mortgage rate.
How long do you think your house is going to be worth $250,000 in this scenario?
Which brings some other questions... How likely is it going to be that any home builders are going to be building any new homes to open up the shortage in housing when standard framing 2x4's are nearly $5 each, but the homes are going to be plummeting in value because of high interest rates?
What happens when the FED raises their rate to 3.4% by the end of the year? Possibly over 5% by summer of next year?
07/07/23: It is currently 5.25%.
Quote:
Let's just add 1.25% to mortgage rates to give a conservative estimate of what will be coming with the same scenario above....
Interest on a 30 year mortgage in a very plausible future of 6.75%
07/07/23: According to Freddie Mac in this AP article, it's now at exactly 6.81%.
https://apnews.com/article/mortgage-payment-home-loans-home-prices-aff
ordability-d31e9074ac7a0ebf9950167344b55920
According to Google though, it's much higher.
For somebody with a 700-719 credit score, Mortgage rates are 8.123%
740-759: 7.877%
800 and up: 7.485%
All of these Google figures are MUCH higher than the calculations were based on below, with all but people with credit scores of 800 and above paying 2% more than my "plausible future" scenario.
Quote:
for a $250,000 home with $25,000 down payment ends up being $300,364.46. The buyer's monthly mortgage payment is now $1549.35. Total cost of your $250,000 home now costs the buyer $525,364.46 after 30 years. Total interest payments over 30 years are now 120.1% of the appraised value of the home.
This is not tenable. The $250,000 appraised value of your home is untenable.
And I hate to break it to you, but even 6.75% for montage rates is fairly low, historically speaking. Between 1971 and one brief moment in 1998 you never even saw a rate that cheap. It wasn't until the 3rd quarter of 2002 that rates finally dipped below that number and have never been that high again.
(Verify the above statement here: https://fred.stlouisfed.org/series/MORTGAGE30US )
Ripples...
The Joe Biden* economy was the final nail in the coffin for 25 years of extreme mismanagement of the economy by WaNOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Hey, Jaynez.
You should look at my posts from summer of last year as they compare to the rates we've got this year and put that in the predictions thread. I'll bet I was far closer to our current reality than any of the economists that the mainstream media was giving the bullhorn to a year ago.
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How you do anything is how you do everything.
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