Deleveraging

Food prices: Corn, Wheat and soy are at all time highs. Most food products depend on these, as well as oil. Oil is also on its way up (depending on what happens in Saudi Arabia, tomorrow, it may go up considerably more). All of these issues are global, and not just USA and middle man related specifically.

I agree with those who feel that we are in a plateau area--where we may see some recovery, but will not see the growth which was have seen over all in the years after WWII. Also I agree USA no longer holds the same place in the world it once held. The dynamic economies in the last year were China and Brazil; not the USA.

I cringe when I see people borrowing to buy a boat. (or any other recreational toy). I worry that the younger folks do not understand what it takes to live in retirement. People used to think that you could live on less than half than when you worked. That is just not true--and in reality, at 3% inflation, your buying power in 30 years is reduced by 60%! So you have to save for income at least equal to your last job. That is not easy. Social security is a miminal amount of income. Another issue we have not really faced is the cost of medical care of the elderly. It has to change. Where we are today is not sustainable.

My mother in law died at age 93 a little over a year ago. When she retired at 60 (She was blind), she had minimal expenses, a good pension, SS, as well as owning her home. By the time she passed on, she no longer had enough income to live on, the savings were gone--we were happy to pay for her retirement home, and at the end to have her live with us, and have hospice. But will your children be able to afford to take care of you in old age? Certainly what is happening with governments can be reflective of our own personal finances.
 
I didn't have time to watch the entire video currently--I did watch about half--and there are some valid points. But I also looked up some of the information about Paul Craig Roberts. It is worth looking at his other writings and views. It appears that he supports the conspiracy theory about 9-11 twin towers.

I might also mention that Alex Jones, seems to be promoting the "Solar generator"--which is a huge rip off--this is not related to the discussion, but something that we should be aware of.

I think we have to take any one view and relate it to what other information we have available and see where it fits with our experiences in life.

Thanks for the link--it is certainly interesting, and I will finish watching it later today.
 
We are all the same in that we are C-Dory / Ranger Tug owners with a common interest in a cruising type of boating as opposed to the go-fasts with a topless bimbo on the foredeck (not that that is necessarily all bad), or yacht club lifestyle, etc...
We are all different in that we came to be the same by different routes...
It is interesting to read the stories... Mine is the same (frugal) as all of you and yet it is still different... Having turned 72 last week I reserve the right to pontificate...

As far as feeling bad about spending money going boating now that the economy is rough and many people are struggling - I simply don't...

I made a monthly boat payment, every month, for 250 months - and I didn't own a boat...
I spent that money over the past couple of years buying an (almost) new boat and having a custom trailer built, and buying a couple of brand new trucks... I am now set for the next decade of my life to follow the wind; if I have time left... Who knows? <shrug>

Most of those who are drowning in credit card debt, etc. made their own bed and they will have to lie in it... They could have put money away for 250 months also... They could have driven a clunker, carried a brown bag lunch, given up smoking and barristas, lived in a walk up apartment (you should see what we started with) and had a second job when times were good and put that money away...

They could have but mostly they did not and are now drowning in debt - speaks for itself... Yes, I know that there are some who simply got run over by the recession because life is not fair... My living like a pauper will not change things for them... And you should have seen how unfair life was in feudal times...

The upside of leveraged ownership is that you get to pay the bill with big, soft, worthless dollars and will own something worth more in, inflated dollars, than what you paid for it...
The downside of leveraged ownership is that you might lose your job and and thus all the things you borrowed for...
The one thing you can count on is that the value of the dollar (the basket of goods it buys) will continue to fall...
 
Levitation":ba9zb2ep said:
As far as feeling bad about spending money going boating now that the economy is rough and many people are struggling - I simply don't...

Most of those who are drowning in credit card debt, etc. made their own bed and they will have to lie in it... They could have put money away for 250 months also... They could have driven a clunker, carried a brown bag lunch, given up smoking and barristas, lived in a walk up apartment (you should see what we started with) and had a second job when times were good and put that money away...


Very well put. My wife would always say "You say we are doing very well with the businesses, so why do I always feel poor" - that is because we paid off as much debt as possible on any and all loans, no credit cards, etc.

The recession didn't feel any different to our family, we always watched how we spent money. I always say that I'm not frugal, I just don't want to give my money away.

I don't worry about the folks around me - meaning I don't keep up with the Jones's or worry about the folks trying to keep up with me. I've worked too hard to worry about that.
 
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