Inflation
Whether you live in The villages or right outside the bubble prices from 10 years ago have gone up about 250% for homes. This is a massive inflation and it's no good for people on fixed incomes. If I sold my house today that means I can only buy a house similarly sized. In other words eggs that used to be 99 cents a dozen are now much more and my dollar is really worth less. Back in sixties ,I remember my father buying his first house. It cost him one half of his yearly salary. Years later when I was buying my home with my wife , it cost me two times my salary. The only good thing today is I interest rates are still three or four percent for a mortgage compared to 13% way back when I got a mortgage I don't know how I did it. I am truly scared that the world will eventually go into an interest spiral. Virtually all of the countries will declare bankruptcy and get rid of their bonds like Russia did. Right now the USA spends about 10% on the interest alone of the government's debt. Can you imagine if we had to spend another one or two trillion dollars a year out of our budget and what would have to be cut? That is why I feel all of this free money is crazy
|