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For All The Cash And Bond Lovers Out There

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Faber nails it on the head.

Minute 33 onwards-

Negative interest rates for the next decade.

IIRC this is the Faber lecture where he says, with an extremely sleazy glint in his eye, that it was the "well developed service sector.. especially at night" that attracted him to Asia.

I think he's quite wrong in his Bernanke/money printing/hyperinflation rants, but he's a bit of a legend and good for a pithy phrase when disparaging Keynsians: "Look at Zimbabwe and their output gap".

His best imo is the lecture he gave to the Slovenian parliament:

It's one of the best sweeping summaries of the global macro situation. Basically setting out the "Protectionism then War" narrative. Can you imagine the stuffed-suit idiots in our Parliament getting in someone like Faber to discuss macroeconomics?

Edited by 50sQuiff

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Faber nails it on the head.

Minute 33 onwards-

Negative interest rates for the next decade.

This is a must watch. Well worth the hour and seven minutes. He packs a lot into the time.

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Guest Noodle

IIRC this is the Faber lecture where he says, with an extremely sleazy glint in his eye, that it was the "well developed service sector.. especially at night" that attracted him to Asia.

I think he's quite wrong in his Bernanke/money printing/hyperinflation rants, but he's a bit of a legend and good for a pithy phrase when disparaging Keynsians: "Look at Zimbabwe and their output gap".

His best imo is the lecture he gave to the Slovenian parliament:

It's one of the best sweeping summaries of the global macro situation. Basically setting out the "Protectionism then War" narrative. Can you imagine the stuffed-suit idiots in our Parliament getting in someone like Faber to discuss macroeconomics?

Not shy about being a monger. Quite embarrassing.

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Guest Noodle

Faber is an absolute legend.

The deflationist cash lovers here should think about what he is saying and why.

Legend.

Agreed, I can't see where serious deflation is coming from (in the UK) apart from wages. Doesn't mean stuff goes down in price. Just means you can just afford less of it.

Hardly a long mental journey.

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I used to pay a lot of attention to these economic commentators - however over the last 3 years I paid less attention as I decided to focus on my work - which is probably a better source of future riches.

Anyway - I'm comfortably off - and I made a killing from the Credit Crunch - but since a lot of my friends lost a lot of money (and even some they didn't have!) I decided that it was too risky to mess around with the world of finance.

I had a 2 year fixed rate offset mortgage at 5.25% and I thought that I would have trouble bettering that - so I paid that off.

Now - I'm on a life-time off-settracker of 2.59% - which is not fantastic - but I am paying only about £30 per month (LTV of around 7%. :) so it's not that bad.

Having watched this - I was captivated.

It reminds me that you can't pay any attention to the MSM as they are just a bunch of VIs.

Typically on a nice sunny Sunday morning I read the Sunday papers and read the "money make-over".

The advice is always the same - But a house - Cash ISAs - pay off CCs - any left over invest in this fund with a 4% AMV.

Complete shit - I'm going to be spending a lot more time looking at what are the trends and I think that the idea of having 50% of your assets outwith of Developed Ecomonies is a good way to start.

I hope that other people take the time to watch this very informative video - it cuts through the crap and shows you that if you don't take an active approach to managing your wealth - you'll be screwed by the BOE/FED.

Negative real interest rates - that's what's going to slowly kill off a lot of people's wealth.

Except - if you can turn that to your advantage. :)

That's why the off-set mortgage is great :)

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You'll be screwed by the BOE/FED.

Negative real interest rates - that's what's going to slowly kill off a lot of people's wealth.

Except - if you can turn that to your advantage. :)

That's why the off-set mortgage is great :)

As a cash and bond bear i agree, we are in for negative returns on paper/cash/wages. But thats the link bonds, cash, wages are all interlinked..............If we are in/heading for a long period of negative interest rates, then we are in for a long period of negative returns on cash, negative returns on bonds, and negative returns on wage settlements. We are going to get poorer..............simple.

So asset prices cannot go anywhere, less disposable income, but yes you can take advantage of negative interest rates, pay down debt if you have debt. I have no debt, so will spend capital.................So in ten years of negative interest rates, similar to Japan, we will a fall of in excess of 50% in house prices, and in excess of a fall of 50% in the purchasing power of your money, this could be either your wages or your savings. But you will lose purchasing power.

But i would rather lose purchasing power of something i have, rather than lose capital value of something i do not own.

We are in for wealth deflation whether you own assets or liquid cash, they will all fall in value i am afraid. Fighting the tied will be very tiresome.

P

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  • 150 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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