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Meh to almost everything here except maybe housing. Corporate debt is high because DEBT IS STILL CHEAP (fed is changing that). Of course they're going to borr
by firebird84 9y ago
Meh to almost everything here except maybe housing.
Corporate debt is high because DEBT IS STILL CHEAP (fed is changing that). Of course they're going to borrow fuckloads of money, it's practically free by some measures!
The indexing "bubble" is actually a correction for a lack of value from active funds. I don't expect the correction to be corrected.
The cryptocurrency bubble is tiny. 65 billion? That's a rounding error.
5 Stocks accounting for most of growth is troublesome when corrected, but still not catastrophic. If we lose ALL of that growth then we go back to 2016 levels? Ok.
- mcknz 9y ago> 5 Stocks accounting for most of growth is troublesome when corrected, but still not catastrophic. Yes -- this is the whole point of owning a broad index. You get exposure to the highest-performing stocks -- what those actual companies are changes over time. And there's usually another company to step up and fill the gap when one of the leaders falls.
- Toidiu 9y ago> Meh to almost everything here except maybe housing. Care to elaborate more on the housing.
- Varcht 9y agoYou know, the last 10 years? Housing bubble pops hurt, the rest? Meh
- thinkMOAR 9y agopractically free indeed, vs the practically have to pay for keeping my savings on a savings account... shrugs in discontent (tax is higher on my savings then the interest i get, for those that didn't understand)
- oneeyedpigeon 9y agoYou have to pay tax on your savings? What country are you in?
- flipp3r 9y agoNot the parent comment but in the Netherlands where I live you have to pay tax on your savings once it exceeds about 21K EUR. The government then makes up that you must be at least getting 4% (up to 9% if you have up to 1M) interest, and it wants 30% of that interest of anything over that 21K EUR limit. Meanwhile the current interest at banks is anywhere from 0.05% to 1% here (most major banks are around 0.2%).
- Nokinside 9y agoThe way you describe it, it's not tax on savings, it's investment income tax. Almost all countries have it. As a general principle taxing personal investment income should be taxes at least the same amount as labor income. Taxing labor has more negative externalities than taxing investment income.
- jlamberts 9y agoI think they're saying that they're being taxed as if they were getting 4% interest on their savings, when in reality they're getting less than 1% because rates are low. So even though it's nominally a tax on interest earned, it's effectively a tax on value of assets held in savings over 21k.
- deleted 9y ago[deleted]
- shove 9y agopretty sure you're not paying any tax on the money in your savings account (beyond income tax in the year in which it was earned)
- munin 9y agopossibly they mean pay as in losing value to inflation?
- ghostbrainalpha 9y agoIt's crazy what people are reading into this comment. By practically pay, he just means he has a very low interest rate, and possibly some regular account fee's.
- djrogers 9y agoThat's valid for some countries, not all.
- Nokinside 9y agoJust providing nominal values and comparing them to values decades ago is so basic BS marketing strategy. Any investor who wants to figure out risk levels must put it all into context. Usually it means ratios. Just few examples of putting things into context: * Household Debt Service Payments as a Percent of Disposable Personal Income https://fred.stlouisfed.org/series/TDSP https://fred.stlouisfed.org/series/TDSP * Household Financial Obligations as a percent of Disposable Personal Income (FODSP) https://fred.stlouisfed.org/series/FODSP https://fred.stlouisfed.org/series/FODSP * Household Debt to GDP for United States© (HDTGPDUSQ163N) https://fred.stlouisfed.org/series/HDTGPDUSQ163N https://fred.stlouisfed.org/series/HDTGPDUSQ163N
- otakucode 9y agoThe housing bit interests me but I can't take it seriously when they're pointing at the single most irrationally priced area in the nation to make the overall situation look similar. Yes, if you want to live in SF you can expect to pay utterly idiotic amounts. But that's pretty much isolated to SF.
- mabbo 9y agoThe value of my condo has gone up by over 60% in two years. Canada, Toronto especially, is in for some rough times in this housing bubble. The real issue is that the big cities like Toronto are the economic centers of the region. When they pop, everything else will be in trouble too.
- Nokinside 9y agoThe value of your condo going up gives very limited information if there is bubble or not. If you want to figure out what the correct price level is, find statistics that compares price of housing to median income in your area over time. That's the single most important metric determining the correct property valuations. Prices can go up as long as incomes go up. Major cities have higher productivity and prices can go up until they start to eat too much from the income. In declining areas prices can go down and houses are still overvalued.
- bob_theslob646 9y agoWhy not check the amount of domestic buyers versus foreign buyers?
- Nokinside 9y agoThat's good idea in some specific areas and price categories.
- mabbo 9y agoWages did not go up by 60% in two years. They barely went up at all.
- deleted 9y ago[deleted]