Is the dollar going to become worthless?

Really? Weird. Qualifications you need to be a bank teller in Omaha, NE:

1) no criminal record
2) ability to count without using fingers & toes
3) willing to work for $8/hour

^ I know. That's why I mentioned it

Damn! In-n-out Burger's starting wage is $10.50/hr.

Start exchanging your dollars for pounds/Euro's now and keep yor savings in a European bank.

I only got about 500 quid and the rest in yankee dollars.

I'm thinking we'll see $2/1€ by the end of the year.

And then President Barack McClinton will start the BIG War.

Um...the hell are you talking about?

Historically speaking, housing is still considerably overpriced on average, but "on average" isn't everywhere, and the degree varies considerably from locale to locale. At the height of the boom prices to buy were on average 50%-60% overpriced based on the ratio between price to buy and price to rent comparable property, a ratio that's generally expected to stay in a pretty narrow range absent a housing bubble or bust. House prices are still considerably high, and probably have another 20-25% to drop relative to rents before they bottom out.

That said, the problem is most acute in the big coastal cities (plus Chicago) where land is genuinely scarce. Where land is plentiful and cheap so that house prices are limited by construction costs, there never was a real housing bubble, and now is probably a good time to buy. Where land is scarce and overoptimistic land speculation combined with zoning laws that restrict new building drove up housing prices, prices still have a very long way to drop, perhaps another 30%-40%, and I'd give it a couple of years of renting before buying unless a dream home comes available in a good deal.

The worst thing to do now would be to buy with mortgage terms that might see you unable to make payments in a couple of years and force a sale at reduced prices--a teaser rate mortgage or a mortgage that defers paying principle for a few years would be a really bad idea now. If your friend gets a good fixed rate mortgage and plans to live in his home for a good long time, that might not be a bad deal even if the market spends a couple of years bottoming out.

I've been told by bankers that if you plan on getting a home that you will live in, and that you like, buying is never a bad option. Housing prices generally go up the longer you keep the house, despite the year to year ups and downs. Even if somehow the value of your property goes down after you pay it off, you will still have something useful and that you are proud to own. I know the US is quite a clusterfuck right now, but up here, property is STILL a great investment.

We still live in what is considered the 'New World', meaning there are more people moving HERE than moving away from here. (And by here, I mean N. America) Given the choice, most of the world's people would rather live in a westernized country than anywhere else, i.e. Australia, Europe, North America. This, along with population growth here, means, over a time someone takes to pay off a house, demand will increase and the house will usually gain value.

Okay, let's say I 'have a friend' (just kidding Frontline ) that is about to move to Ft. Bragg (Fayetville) NC. He gets about 800 bucks a month for buying/renting and has about 50K (what wives mother is giving us for a house) to put down on a 100K townhome. We're going to live there at least 3 1/2 years, maybe six depending on if I decide to go Guard for the remainder of my IRR contract.

Good idea to buy, or better to wait. Oh yeah, and we aren't moving till the end of summer.

Anc, if I read this correctly, you sre looking at putting 50% down on a 100K condo, and receiving a VHA of about $800 in addition to your base pay and allowances?

You'll be fine. Your mortgage payment on a $50,000 mortgage will be a lot less than $800 unless you do something like go for a 15-year option, which is actually a good choice if you can afford the higher payments. Either way, I think you'll be fine, and you'll be miles ahead of most of your fellow soldiers financially, I'm thinking. When you go for the mortgage, make sure you check out VA loans. There are some good deals there if you're on active duty.

And living in an area like Bragg, you won't have many worries with resale or, worst case, having to rent the place out if you move away. Then it becomes an investment property in which you are already financially very solid.

That's a really big deal right now. Yeah, gotta figure that a military town with high population turnover so that there are always a lot of people looking to buy or rent is relatively safe these days.

Are you stuck on stupid or is your Irony/Funny Bone broken?

Invade Pakistan!

[YT=Summary of Marso's Financial planning]youiekG2UJA[/YT]

Heh. I really don't get the gold-as-an-investment obsession. In particular, gold is pretty much the ultimate reusable resource--it's as chemically inert as baba's intellectually inert--so the only way supply really gets constricted is by hording or disposal, and disposal is presumably pretty negligible in extent. Of course jewelry and art hording constricts open market demand as much as open market supply presuming use, display, or gifting by the owner, so it's really only investment hording that affects gold market prices. Gold never gets used up, and it's really doubtful that demand increases any faster than population increases, or that that's any faster than gold can be mined. Gold can only be a good investment when you sell it during a bubble, and unless someone discovers a miraculous new use for gold that markedly increases demand, gold simply isn't, in the long run, ever going to increase in constant dollar value. Gold can be a reasonable hedge against plummeting stock and currency markets, but it really isn't anything more than that in any sane investment strategy that doesn't count on taking advantage of silly people who generate bubbles.

And you have to pay 28% tax on gains from gold, but only 15% on gains from stocks.

It's a free market until the fatcat free market promoters stand to lose money, then they all start calling for government bailouts.

^^^^^^

and sadly the addled brain politicians keep caving into doing it.

I wants my gub'mint check!

Well the big question is BRAC. I've heard Bragg is gaining a couple thousand people. But I can't find anything useful online.

All of you that believe your dollars are going to become worthless? Please send them to me.

Elwood Blues
1060 West Addison
Chicago, IL. 60613

Yeah, basically. Although I just looked it up and BAH would be 898 a month. Nice. Last time I checked and it was around 800!

We were looking at the 15year ones actually.

To be honest 100K is a highball. The ones we liked were between 80-90K a couple months ago. I just picked 100K b/c I have no idea how taxes and fees and all that jazz work.

And yeah, I will definitely check out the VA first!

That's what I'm hoping.



Thanks you guys!

Well, Gold's dropping like a rock.

My packet cleared the recruiter and has been sent to his Branch Manager. Cross your fingers but it looks like Bragg here I come!

Well, when people start realizing that gold's far too inflated in price to even be a reasonable hedge, that's to be expected. Even as a very nervous hedge position there's no reason to buy gold above $600/oz or so--prices on gold were already at a long-term high in the $400-$450 range and going up at an unusual but not-quite-alarming clip before bubble economics took over about 3 years ago.

Don't try to Wriggley out of it.

I'm glad I waited to buy more. Of course, when anything hits an 'all time high', that's not the time to buy- that's the time to sell.