The stock market made me hit the pause button

[Adam84]

Originally Posted by temporarychicken

When I got my first UK mortgage the banks would lend 3.5x my salary.

That was 1999. Now banks are lending 6.5x salary.

No wonder some Rolex are 2x lol.

If you look at how inflated house prices have got compared to salaries it’s no wonder they have to lend more!

[Patton250]

Originally Posted by Sandpit

This isn’t a prediction or a real comment - but I sometimes wonder if we’re in the Florida moment of the Big Short movie. You know, the bit where everyone is just going about as if nothing is wrong.

I love that movie. It made me realize something about the stock market. It made me realize that probably less than 10 people in the world really know what’s happening and those 10 people let perhaps 1500 to 2000 other people kind of know what’s happening. The rest are all Think they know.

[temporarychicken]

Originally Posted by Adam84

If you look at how inflated house prices have got compared to salaries it’s no wonder they have to lend more!

Maybe there is a house price forum with people discussing their strong desire for a price crash there too!

We do it here a lot but it's fun (not for everyone though).

[DocHorton]

Originally Posted by Patton250

I love that movie. It made me realize something about the stock market. It made me realize that probably less than 10 people in the world really know what’s happening and those 10 people let perhaps 1500 to 2000 other people kind of know what’s happening. The rest are all Think they know.

Reminds me of this video clip...

https://twitter.com/theSamParr/statu...80475276668932

[huncho]

Originally Posted by Patton250

I love that movie. It made me realize something about the stock market. It made me realize that probably less than 10 people in the world really know what’s happening and those 10 people let perhaps 1500 to 2000 other people kind of know what’s happening. The rest are all Think they know.

gotta get yourself a quant

[1665fan]

$26000 cermit on the sales corner……….i guess some people still have $$$

[Patton250]

Originally Posted by huncho

gotta get yourself a quant

Best scene of the movie.

[NorCalKid]

Way I see it this is a time to sit back and keep your powder dry. If the markets continue to collapse and especially if this spreads into the housing market 2023/24 will be the opportunity of a lifetime. Either investing or buying that dream watch that has always been unobtainable.

At times I kinda feel like nobody has ever entered an AD prior to 2018 or so.

[00Seven]

A lot of wannabe watch enthusiasts in this thread (Rolex passion!)…got in while the market was hot and values went one way (up). True colors are showing when there’s a pullback.

If you’re worried when prices pull back 20%, time to get out of the game.

[vman]

Originally Posted by rajurama

If your buying decision is based of any financial gains or losses just understand you are really not into watches for a passion. Probably you bought previous watches as a reward or just to get the latest or best etc. Or just as an investment.

Originally Posted by NorCalKid

Way I see it this is a time to sit back and keep your powder dry. If the markets continue to collapse and especially if this spreads into the housing market 2023/24 will be the opportunity of a lifetime. Either investing or buying that dream watch that has always been unobtainable.

At times I kinda feel like nobody has ever entered an AD prior to 2018 or so.

That's the money quote.

[eijiboy]

Originally Posted by 1665fan

$26000 cermit on the sales corner……….i guess some people still have $$$

The question is. Is it sold? Cermit are selling for 20k now.


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[Thehedgehoncho]

HODL. Buy on discount.

[mountainjogger]

Originally Posted by eijiboy

The question is. Is it sold? Cermit are selling for 20k now.


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Yup. That is always the question. Not noticing any real price drop on upper tier secondary sellers for bread and butter models. And on some, no drop. So, still waiting to see what will happen.

[Harry-57]

Originally Posted by Adam84

Biggest issue I see in the U.K. is that we have an entire generation that doesn’t know what an interest rate it.

For the last 10 years we’ve been a country of near 0% interest rates, low mortgage rates, cheap loans and 0% finance.

I suspect a lot of people have just been drip feeding their money out to get what they want, when they want rather than saving to buy something in full.

If interest rates start to rise in the U.K. to try and calm inflation, this could be a real issue for those who either haven’t got money, or have been splashing it around.

I've paid between 10 and 20% interest on a mortgage. In the 1980s this was run of the mill. Been there, survived it.

The UK economy has been artificially managed for over a decade. It's not free market capitalism. It might be a new "normal" but it's not normal and it's not permanent.

When debt is reclassified as wealth and gambling is thought of as investment, the alarm clock starts ticking louder. Now the bell is ringing. Who knew?!

[GB-man]

Originally Posted by eijiboy

The question is. Is it sold? Cermit are selling for 20k now.


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You can get them fresh NIB low 19s I’ve seen preowned in the 18 range.

[mountainjogger]

Originally Posted by Harry-57

I've paid between 10 and 20% interest on a mortgage. In the 1980s this was run of the mill. Been there, survived it.

...

When debt is reclassified as wealth and gambling is thought of as investment, the alarm clock starts ticking louder. Now the bell is ringing. Who knew?!

I hear you Harry. I can remember thinking it was great to be able to refinance our home to 7.5%.

And many of my friends chide me for not carrying debt at low rates (home, vehicles, business, personal lines) so I could invest the proceeds in the market. From one way of looking at it they are no doubt correct and are laughing all the way to the bank. But I just feel better with no debt. Definately not the norm though.

[temporarychicken]

I don't care how cheap debt is - its debt. I still don't want any.

If aspiring towards and achieving a debt-free life is out of fashion, then so am I lol.

[vman]

Originally Posted by temporarychicken

i don't care how cheap debt is - its debt. I still don't want any.

If aspiring towards and achieving a debt-free life is out of fashion, then so am i lol.

+1

[blargle]

Originally Posted by temporarychicken

I don't care how cheap debt is - its debt. I still don't want any.

If aspiring towards and achieving a debt-free life is out of fashion, then so am I lol.

i am the same, 99% of the population are the opposite to us however - when/if the interest rates rise, it will be a blood bath

[Adam84]

Originally Posted by Harry-57

I've paid between 10 and 20% interest on a mortgage. In the 1980s this was run of the mill. Been there, survived it.

The UK economy has been artificially managed for over a decade. It's not free market capitalism. It might be a new "normal" but it's not normal and it's not permanent.

When debt is reclassified as wealth and gambling is thought of as investment, the alarm clock starts ticking louder. Now the bell is ringing. Who knew?!

I was a kid in the 80s but i remember eating jam n bread for months because its all the parents could afford.

When i bought my first house we were clearing out my parents loft and found their old mortage book....it ranged from 26% one month to 8% the next....it was all over the place. Quite how people managed i have no idea!!!!

I agree the economy has been artificially managed too much. problem is the gravy train has to end somewhere.

[Adam84]

Originally Posted by temporarychicken

I don't care how cheap debt is - its debt. I still don't want any.

If aspiring towards and achieving a debt-free life is out of fashion, then so am I lol.

100%

The only debt i have is my mortgage. I save up and pay for things in full, sure it means i never really have new stuff, but it means i stress less about money.

[WILLIWALKER]

Originally Posted by Adam84

100%

The only debt i have is my mortgage. I save up and pay for things in full, sure it means i never really have new stuff, but it means i stress less about money.

I agree with you and was 100% on this line until recently.
Debt can have an interest especially in the world towards which we seem to be heading, friction at the level of supply or even shortages.

[macrowatch]

Originally Posted by temporarychicken

I don't care how cheap debt is - its debt. I still don't want any.

If aspiring towards and achieving a debt-free life is out of fashion, then so am I lol.

Is negative interest rate debt still debt?

[Calatrava r]

Originally Posted by macrowatch

Is negative interest rate debt still debt?

Likewise are interest free loans such as on new cars really debt? I think of it as spreading the cost over a few years since we all pay this stuff with after-tax dollars. The tax rate is far higher than the zero percent interest rate.

[Njkdog]

Originally Posted by macrowatch

Is negative interest rate debt still debt?

yeah, the principle of the loan is still there, but the loan would be shrinking.

[Onequik135i]

The only good debt to have in my eyes is a mortgage along w a car loan (especially if at .9/1.9 etc). Luckily I have a very small mortgage balance on my place and an adequate car loan @ 1.9 & that’s it. ��

[Adam84]

Originally Posted by Calatrava r

Likewise are interest free loans such as on new cars really debt? I think of it as spreading the cost over a few years since we all pay this stuff with after-tax dollars. The tax rate is far higher than the zero percent interest rate.

Well that depends.

Is it REALLY Interest free, or is the interest rate hidden in the purchase price?

Take watches for example. Interest free doesn’t really exist….you can buy the watch at around 20% discount if paying in full so in reality you’re paying 20% interest by getting it ‘interest free’.

[Fleetlord]

Originally Posted by Adam84

Well that depends.

Is it REALLY Interest free, or is the interest rate hidden in the purchase price?

Take watches for example. Interest free doesn’t really exist….you can buy the watch at around 20% discount if paying in full so in reality you’re paying 20% interest by getting it ‘interest free’.

It's not free. There is a "buydown" % from the finance company that gets passed down to the consumer in the amount financed.

Cash discounts almost always trump 0% .

[mountainjogger]

Originally Posted by Fleetlord

It's not free. There is a "buydown" % from the finance company that gets passed down to the consumer in the amount financed.

Cash discounts almost always trump 0% .

[fskywalker]

Originally Posted by Onequik135i

The only good debt to have in my eyes is a mortgage along w a car loan (especially if at .9/1.9 etc). Luckily I have a very small mortgage balance on my place and an adequate car loan @ 1.9 & that’s it. ��

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