Posts Tagged ‘private’

“You’ll never guess what’s leading consumer debt higher now, at this stage in the cycle… mortgages… specifically, a new type of Fannie and Freddie mortgage product. It’s called ‘The Conventional 97’. It only requires a 3% down payment.

What’s ‘conventional’ about this kind of loan? Nothing, of course. No private lender would ever make a loan like this where the lender is taking all of the risk.” -Porter Stansberry

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Private Debt

Posted: April 10, 2018 in Debt
Tags: , , , , ,

“The only ways out of private debt are to pay it, to default, or to have it forgiven.” -Porter Stansberry

“Who did the most damage: Greenspan, Bernanke, or Yellen?…  When Mr. Greenspan took over at the Fed in August 1987, the government owed about $3 trillion… or about 40% of GDP.  Today, the national debt approaches $21 trillion – more than 100% of GDP.  Household and corporate debt levels have shown similar expansions. Overall, for the last 30 years, total (private and public) debt has grown about twice as fast as the economy that supports it….  And now, hundreds of millions of people depend on the EZ money economy created by Greenspan, Bernanke, and Yellen. Their jobs, their incomes, their investments, their retirements – all depend on keeping the fantasy alive.” -Bill Bonner

“POLITICS, n. A strife of interests masquerading as a contest of principles. The conduct of public affairs for private advantage.” -Jason Zweig

Trying to look a part is perhaps the single easiest way to never become the part.  This is especially true when it comes to money.  It takes a lot of money to keep up appearances.  This money spent on consumption items will be money not used to create real wealth.  If you really want to be rich, create a private reserve first, then let the money your money makes do the purchasing.  Spending first will leave you with empty pockets.

A proper private reserve provides you with quick access to your money.  Another term is “liquid”.  This is why I call it a pool of money.  You can go to the pool and take water out with a bucket.  In the same way, this private reserve allows you access to money when you need it.