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Robin Hood etc....


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2 minutes ago, BigStewMan said:

that's good then ... back in 1980, I had about a half dozen CDs that were earning over 17%

People must have been financing cars for 20%.  I know they were paying 11%+ for car loans in the early 90's.  That was the heyday, I was thinking about.  I'm probably a little younger than you.  In those days, you could get around 5-6% for CD's.

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5 minutes ago, Jeff Matthews said:

People must have been financing cars for 20%.  I know they were paying 11%+ for car loans in the early 90's.  That was the heyday, I was thinking about.  I'm probably a little younger than you.  In those days, you could get around 5-6% for CD's.

chronologically, I'm 60; but many say that I've never grown up. The CD return was very good; but I think it was about this time that they came up with the Misery Index because inflation in 1980 was 13.5%. 

CD rates in the 1980s
On average, 3-month CDs in early May 1981 paid about 18.3 percent APY, according to data from the St. Louis Federal Reserve. The reason interest rates were so high in the 1980s was due to high inflation. With inflation, the cost of goods and services rises and your money doesn't buy as much.Jan 8, 2021
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10 minutes ago, USNRET said:

I have a mattress stashed with what little money that actually belongs to me and is not Monopoly money. Should have bought uranium 

back in 1994, I was still married. my wife took a new job and had 10% of her income going into a 401K.  I told her that she should just buy gold. She'd have made a killing; but then she divorced me so ... I lost either way. 

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8 minutes ago, BigStewMan said:

chronologically, I'm 60; but many say that I've never grown up. The CD return was very good; but I think it was about this time that they came up with the Misery Index because inflation in 1980 was 13.5%. 

CD rates in the 1980s
On average, 3-month CDs in early May 1981 paid about 18.3 percent APY, according to data from the St. Louis Federal Reserve. The reason interest rates were so high in the 1980s was due to high inflation. With inflation, the cost of goods and services rises and your money doesn't buy as much.Jan 8, 2021

"Stagflation!"  I remember that as a kid.  It didn't register to me back then.  I just knew it was "bad."

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My first wife and I bought a home during this period, the early 80’s. And yes, CD’s paying 17% sounds great but the flip side was mortgage rates of the same, 16-18%. Our county issued bonds for first time home buyers with a max purchase price of $68.5K. Mortgage rate was 12.5. We thought we had won the lottery- 

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12 hours ago, richieb said:

My first wife and I bought a home during this period, the early 80’s. And yes, CD’s paying 17% sounds great but the flip side was mortgage rates of the same, 16-18%. Our county issued bonds for first time home buyers with a max purchase price of $68.5K. Mortgage rate was 12.5. We thought we had won the lottery- 

I collected a ton of interest money during those years; I didn't have to worry about mortgage rates; but I know they were sky high. 

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10 minutes ago, richieb said:

My first wife and I bought a home during this period, the early 80’s. And yes, CD’s paying 17% sounds great but the flip side was mortgage rates of the same, 16-18%. Our county issued bonds for first time home buyers with a max purchase price of $68.5K. Mortgage rate was 12.5. We thought we had won the lottery- 

Yes but, the price of the same house was 10-20% of what it is today

 

Lower interest rate, higher priced house

 

1980s Median Home was 3x  Median yearly income, since 2000 it's 6x median income

 

Now that's what I call inflation 100%

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9 minutes ago, Jeff Matthews said:

It's interesting how times have changed.  CD's don't provide squat, but that's because the Fed has made home-buying more affordable by reducing rates to rock-bottom.

Houses are less affordable

so is everything else

they are trying to keep the all of the bubbles inflated

so they keep blowing them bigger and bigger

 

College Loan bubble is now $1.5 T

Junk auto loans are approx $500B if memory serves me correctly

and US just ran a $3 Trillion deficit for the year

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Somewhere in the 90's the idea that stocks produced dividends and that was the only real reason to own them was forgotten. Stable future income. Capital gains were hoped for but not the reason you bought stock. Today this huge ponzi scheme is based on musical chairs and not dividends. It is inevitable that this whole thing will crash down and sadly suck up a huge chunk of middle class America who trusted these stock people.

 

  Can anyone tell me off a single stock they know of today that has that 8 to 1 ratio of cost to dividend that used to be the sought for goal? That goal that was achievable back then. I think this whole capital gains only thing has been set up to fleece people counting on this for retirement and I love what is happening. Hard for crooks to hide when spotlights are being shined on them.

  I am reminded of the S&L crisis in the 80's where they were selling real estate back and forth creating fictional "real" demand until it ran out of steam. There is a LOT of trouble coming our way when the lid blows off this time.

 

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2 minutes ago, Dave A said:

Can anyone tell me off a single stock they know of today that has that 8 to 1 ratio of cost to dividend that used to be the sought for goal?

To be fair, in those days, you needed at 12.5% return because you had to pay an even higher rate than that to buy a car.  With interest rates so low right now, a 7% yield is actually quite nice!  That 7% will pay all of your mortgage interest and leave you 4% as a bonus.  

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Just now, Jeff Matthews said:

To be fair, in those days, you needed at 12.5% return because you had to pay an even higher rate than that to buy a car.  With interest rates so low right now, a 7% yield is actually quite nice!  That 7% will pay all of your mortgage interest and leave you 4% as a bonus.  

OK name stocks that pay that.

 

  I recently got all of Dad's old mortgages. His $20,000 brand new house bought in Dayton Ohio back in 1964 had a 6. some percent interest rate. Here we are today with almost zero%  interest rates and just how does that work? There is so much slight of hand and chicanery going on.

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an internet search shows that mortgage interest rate in 1980 was 18.45% -- that's insane. honestly, I wasn't the slightest bit concerned with interest rate or the stock market or CD yields back then; but who could have afforded to finance a home back then?  it must have been a buyer's market big time. 

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5 minutes ago, Dave A said:

OK name stocks that pay that.

 

  I recently got all of Dad's old mortgages. His $20,000 brand new house bought in Dayton Ohio back in 1964 had a 6. some percent interest rate. Here we are today with almost zero%  interest rates and just how does that work? There is so much slight of hand and chicanery going on.

Check out AT&T, Exxon, Energy Products, Altria.  There are some others, too.  Chevron is financially strong and yielding around 6%.

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