6 ms·

I would go one step further and say if you don't have a major loan these days, you're a sucker. Get a loan at low interest, buy up assets, get additional loans

I would go one step further and say if you don't have a major loan these days, you're a sucker. Get a loan at low interest, buy up assets, get additional loans on those assets as they appreciate. That's basically the basis of this whole "economic boom". You can rely on the Fed being unable to raise interest rates, or this house of cards will collapse and everyone will need another bailout. The Fed keeps talking about low inflation while asset prices have exploded on their watch, it's hilarious.

smudgymcscmudge 7y ago
Point me to these assets that are guaranteed to go up. I’ll force my kids to get loans and I’ll invest in these instead.
- gridlockd 7y ago
  I suppose the tongue-in-cheek was lost on a lot of people here, this is not financial advice, especially not for the average Joe. Having said that, this is what companies (and certain wealthy individuals) have been doing for a while now: Get cheap loans, buy back your own stock, buy more real estate, drive up the value, get more loans based on those inflated valuations. You may be able to do this as an average individual, that's what happened in 2008 when every schmuck would get a mortgage based on another already mortgaged house. The difference is, when you're an individual the government is not going to bail you out personally (unless maybe Liz Warren or Bernie Sanders are in power). You can at least declare personal bankruptcy if you didn't incorporate. Now the reason why this is a fairly safe bet today is that the governments of the world absolutely don't want to repeat 2008. They will create any amount of money necessary to keep the party going. This means asset prices will rise due to pure inflation. Anyone with cash or long-term bonds will be left holding the bag, which also coincides with the interest of the heavily indebted governments.
season8sucked 7y ago
This is terrible advice and I truly hope you aren’t giving anybody (in public or private) financial advice.
- dang 7y ago
  Maybe so, but can you please not cross into personal rudeness or post unsubstantive comments here? We're trying for better than that on HN. "Better" in this case might mean pointing out better advice and explaining why it is better. But for sure it would mean following the site guidelines, which ask you to do a bunch of things when posting here, including Be kind. https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html

smudgymcscmudge 7y ago

Point me to these assets that are guaranteed to go up. I’ll force my kids to get loans and I’ll invest in these instead.

gridlockd 7y ago
I suppose the tongue-in-cheek was lost on a lot of people here, this is not financial advice, especially not for the average Joe. Having said that, this is what companies (and certain wealthy individuals) have been doing for a while now: Get cheap loans, buy back your own stock, buy more real estate, drive up the value, get more loans based on those inflated valuations. You may be able to do this as an average individual, that's what happened in 2008 when every schmuck would get a mortgage based on another already mortgaged house. The difference is, when you're an individual the government is not going to bail you out personally (unless maybe Liz Warren or Bernie Sanders are in power). You can at least declare personal bankruptcy if you didn't incorporate. Now the reason why this is a fairly safe bet today is that the governments of the world absolutely don't want to repeat 2008. They will create any amount of money necessary to keep the party going. This means asset prices will rise due to pure inflation. Anyone with cash or long-term bonds will be left holding the bag, which also coincides with the interest of the heavily indebted governments.

season8sucked 7y ago

This is terrible advice and I truly hope you aren’t giving anybody (in public or private) financial advice.

dang 7y ago
Maybe so, but can you please not cross into personal rudeness or post unsubstantive comments here? We're trying for better than that on HN. "Better" in this case might mean pointing out better advice and explaining why it is better. But for sure it would mean following the site guidelines, which ask you to do a bunch of things when posting here, including Be kind. https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html