/biz/ - Business & Finance

Why would you ever pass student debt relief as a dem? It means you give up the only carrot you actually have for the non-black young adult demographic to vote for you. Much better to keep promising it and find excuses about why it didn't happen.

Personally I hope the "student debt crisis" only worsens. People who should be in college and want to get an education in a field with demand should be paid to be there, and those who should be in graduate programs also should be paid to be there. Everyone else took a loan for it because civilization collectively agreed it wasn't worth paying them to fuck around pointlessly for 4+ years for an education that didn't offer any return to anybody.

More importantly, their perpetual indebtedness means they wont invest their income. As boomers die, and Gen X phases into retirement and stops contributing to their IRAs and 401ks, the price of capital will skyrocket. Without anyone to pay into equities, the returns have to go up to incentivize investment. In this environment, it is a huge advantage to me and my family that almost all my age cohort will be unable to afford investing, further increasing the purchasing power I have and the gains I can make. My children will have a 2 parent household with at most, 1 parent working outside the home. Their children will enter their working years with enough capital to passively fund a bachelor life or to make it easy for 1 parent to stay home. Their children will be in the early stage of dividend aristocracy.

>>51514070
>>51516630
Because the FED's lending rate (the thing that they can directly control) is the rate at which the FED charges interest to commercial banks. Functionally, the FED's interest rate is the 1st and most basic price a bank has to be able to pay in order to get cash to lend out. If the rate is 1.5%, the banks loans all need to be making enough money to offset that 1.5% rate. If the rate goes to 2%, suddenly all the loans the bank makes have to get more expensive to stay in business. This is why the FED rate increasing trickles down into business and consumer pricing, as it changes the cost of loans for everything from starting a business, to buying a home, to getting an auto loan.

If the FED tomorrow set their lending rate at 15%, the cost of loans would skyrocket. Suddenly venture capital dries up, emerging (and often stupid) industries and businesses collapse for lack of funding. The price of everything purchased with debt explodes. Even "growth" tech stocks would feel this tightening and their value would tank as the money tap gets turned down somewhat.

Not necessarily rural, but I'm thinking of ways to cash in on more and more people starting to grow some food for themselves. For a lot of people, this means only enough space for some containers growing herbs, greens, or some tomatoes, but there is a huge market segment of urban dwelling people that long to get into homesteading / permaculture type stuff if you look at youtube metrics. In a gold rush, be the man selling shovels.

I had the idea of making "hugel buckets"; miniature hugelkultur planters. Basically a 5 gallon bucket packed with decaying wood, layered with soil, compost, and food for microbes, and selling them to this coming wave of new gardeners. Slap 3 casters on the bottom for airflow and convenient moving, and some other small accessories and you're basically selling a long term growing media that needs little active management or upkeep. People lose their shit for plastic self watering beds, so why not? The cost is compost, sticks, a bucket, and some screws.

I think gold is gonna hold at this current low for a while. Speaking as a 21oz gold collector and while I semi-bought in to the hype last year (that by now gold prices would blow past 2100 so I better cop 100g), in hind sight there was no real reason to.
Biden's spending spree relegates PM's to a fear asset and it's clear that wall street demons would rather gamble on shitcoins with that safety net than just park their assets.
Any reset/GFC scenario is more likely to happen mid-term or after, so take advantage of the price and get stacking. I'll probably cop another 4oz sometime this year depending on if the price holds.