Im off.

[Splitlink]

Inflating one's way out of debt is a really cowardly way of tackling the problem. It is promising to pay back on borrowed money and then only partly paying back in value terms. Cheating the lenders in fact. This merry-go-round of borrowing off each other and then welshing on the value of the debts is about what one would expect of national govts these days.

A really POOR show and akin to thieving

But it has always been that way, especially with the US. They are not alone, though.

How much does a London bus driver earn these days? My dad earned less than 4 pounds before the war. All this is because countries have to inflate their way out of debt.

Paying back depreciated money was a normal, if cowardly, way, as you say, until comparatively recently, where it has got out of control. Now I believe that my kids are going to see the end of any way that they can save for the future. The reason for all this is China and the other asiatic countries. They were deprecated, before, and robbed. Now, they want a share of the little cake that's left and we do not know how to deal with that situation, especially energy, on which our economies are based. In addition, after centuries of being underdogs they have no cause to like us very much.

I went for a walk around a part of Barcelona yesterday and saw groups of young people hanging around the corners. They were very polite, let me pass, etc. and I was not worried about them but, there they are, with nothing much to do. How long before the crime rate takes off?.

 

[Trader333]

House prices will rise as it is the only possible outcome with so much money sloshing in the system

I have to disagree in the long term and the London affect will not last beyond 2012 in my view. One of the reasons why London has seen this is the change in the way that city types are paid. They no longer have "relatively" small salaries and large bonuses and it has reversed so going to get a mortgage means more money can be lent based on a much higher basic salary.


Paul

 

[Pazienza]

I have to disagree in the long term and the London affect will not last beyond 2012 in my view. One of the reasons why London has seen this is the change in the way that city types are paid. They no longer have "relatively" small salaries and large bonuses and it has reversed so going to get a mortgage means more money can be lent based on a much higher basic salary.


Paul

Personally, I agree Paul. I think you're correct to identify distorting factors like that. I also think that Atilla is mistaken in the belief that prices have recovered. Certainly in areas of the North that I have looked at, declines continue.

Of course it's always arrested, as people refuse to accept that house prices are not a one-way bet.

We looked at a house about 4 years ago, but decided against buying it. Apart from the crazy price tag, it wasn't right for us anyway. I've been looking again recently and guess what? Same house is for sale, at the same price, 4 years later. I suppose they must be waiting until people will pay what their house is "worth" .

 

[TheBramble]

The US defaulted on debt in 1790 and again in 1933. Why does everyone take it as a given that they would never default when they already have, twice?

It's a little (LOL) more complicated for a country than for an individual, but taking it down to a personal level, if you could default on all your debts while maintaining your income and expenditure (minus any interest payments of course), apart from your inability to borrow (in the short term), what impact would it have on your life?

How (much more) quickly do you think you would be able to get back on top?

Would your situation offer you any competitive advantage over your contemporaries?

You only need to look to history and the results of debt default to appreciate that it is an extremely viable option. Not a card you'd want to play too often, for sure, but it's a true joker, to be sure.

 

[Splitlink]

Personally, I agree Paul. I think you're correct to identify distorting factors like that. I also think that Atilla is mistaken in the belief that prices have recovered. Certainly in areas of the North that I have looked at, declines continue.

Of course it's always arrested, as people refuse to accept that house prices are not a one-way bet.

We looked at a house about 4 years ago, but decided against buying it. Apart from the crazy price tag, it wasn't right for us anyway. I've been looking again recently and guess what? Same house is for sale, at the same price, 4 years later. I suppose they must be waiting until people will pay what their house is "worth" .

Was it occupied? Perhaps they can't afford to sell it for much less than they paid for it.

 

[Pazienza]

The US defaulted on debt in 1790 and again in 1933. Why does everyone take it as a given that they would never default when they already have, twice?

It's a little (LOL) more complicated for a country than for an individual, but taking it down to a personal level, if you could default on all your debts while maintaining your income and expenditure (minus any interest payments of course), apart from your inability to borrow (in the short term), what impact would it have on your life?

How (much more) quickly do you think you would be able to get back on top?

Would your situation offer you any competitive advantage over your contemporaries?

You only need to look to history and the results of debt default to appreciate that it is an extremely viable option. Not a card you'd want to play too often, for sure, but it's a true joker, to be sure.

This is true. Sovereign defaults are actually much more common than people think, it's just that they don't call them defaults usually.

Default is a perfectly good option. What are the creditors going to do if one day they open their post and get a letter telling them to go f*** themselves?

Then you have a brief period of bad feeling, but again looking at history things get back to normal pretty quickly.

Personally, if I was the US I'd tell everyone holding my paper that they can have their money when they get down on their hands and knees and suck it out of my a$$.

 

[Pazienza]

Was it occupied? Perhaps they can't afford to sell it for much less than they paid for it.

Hi SL,

Yes they live there. They were retiring and looking to downsize from what I could gather. You might well be right, but the value they put on it was just crazy, they'll be ready for a new home in the church yard before prices get to the level they're asking for.

 

[Waterfield]

To be honest Roths has been travelling a lot lately, spending a lot of time somewhere in Africa for one part. I'm very sure he doesn't give a **** about t2w, but I'll link him to this thread to see if he comes for some "lulz".

 

[Pazienza]

To be honest Roths has been travelling a lot lately, spending a lot of time somewhere in Africa for one part. I'm very sure he doesn't give a **** about t2w, but I'll link him to this thread to see if he comes for some "lulz".

I thought sex-tourists usually focussed more on the Far East?

 

[0007]

Maybe some tax rises in the short term. But the US is already fairly heavily taxed (obviously this varies from state to state). Tax rises are detrimental and utterly counter-productive in the long term, as everyone knows. To properly resolve their problems they need to become more competitive and learn to live within (or at least closer to ) their means. This requires:

1. Cut taxes.
2. Cut spending.

This is also what's needed in UK. The old socialist ways (ie New Lab ) are unsustainable. It's bad enough that the present generation have got to work their nuts off to keep their parents' generation into old age and support their generous pensions and early retirement pay-offs which all helped fuel the boom.

 

[N Rothschild]

Im still alive. Im no longer a trader. my "im off" post wasn't just about t2w, it was trading in general. i went all in on a trade, do or die to let fate decide. i was bested. i then traveled africa for 8 months and now im about to go to uni to study medicine.


some people can gloat that they were better than me, but the fact is they weren't..i chose to self destruct.

 

[Pazienza]

Im still alive. Im no longer a trader. my "im off" post wasn't just about t2w, it was trading in general. i went all in on a trade, do or die to let fate decide. i was bested. i then traveled africa for 8 months and now im about to go to uni to study medicine.

How come you packed it in? I thought you were doing well at it (not that I think you're wrong - the course you seem to be following now is much better, for you as an individual and for mankind in general).

 

[N Rothschild]

How come you packed it in? I thought you were doing well at it (not that I think you're wrong - the course you seem to be following now is much better, for you as an individual and for mankind in general).

because money is the root of all evil, thats all i can say on the matter. it was ruining my life.

 

[Pazienza]

because money is the root of all evil, thats all i can say on the matter. it was ruining my life.

I'm not sure I agree with that, but nonetheless if you are intending to become a doctor your life will be much more fulfilling and worthwhile. I wish you every success with your studies and future career.

 

[N Rothschild]

" Make money your god and it will plague you like the devil"

im guessing you just have never made enough of it to understand this.

 

[N Rothschild]

Dont get me wrong, i still follow zerohedge, look at by beloved charts..but i will never trade again.

 

[scose-no-doubt]

Im still alive. Im no longer a trader. my "im off" post wasn't just about t2w, it was trading in general. i went all in on a trade, do or die to let fate decide. i was bested. i then traveled africa for 8 months and now im about to go to uni to study medicine.


some people can gloat that they were better than me, but the fact is they weren't..i chose to self destruct.

Sad to hear it Rothy. Good luck in Uni. Wouldn't like you as my doctor though.

imagine this 'orrible tw@ as an oncologist lol.

 

[0007]

Im still alive. Im no longer a trader. my "im off" post wasn't just about t2w, it was trading in general. i went all in on a trade, do or die to let fate decide. i was bested. i then traveled africa for 8 months and now im about to go to uni to study medicine.


some people can gloat that they were better than me, but the fact is they weren't..i chose to self destruct.

Congrats! If you've been able to find out what you really want to do, and have the opportunity to do it, then you will achieve satisfaction far beyond the money riches of trading.

Not many people can do that.

 

[Pazienza]

" Make money your god and it will plague you like the devil"

im guessing you just have never made enough of it to understand this.

Oh, I've done a fair bit, although not as much as I want to yet. Nothing is written in stone however, everyone has their own way of handling things. Money has no power of its own over you, you choose how it affects you, and making money (even a great deal of it) is not the same thing as making money your God.

I'm quite happy to spend my working life trading and I accept what that entails. It sounds like you're not, and frankly that makes you a better person in that regard at least.

 

[TheBramble]

I thought sex-tourists usually focussed more on the Far East?

You don't get many baboons in the Far East.