National Debt Hits $30T

#101
#101
Vol737 said:
Problem is the debt/gdp ratio sucks the life out of the dollar as it continues to rise. Do we not think inflation won’t/can’t decouple from interest rate increases as we pile on more debt? We don’t need to pay off the debt, we need to pay it down and lower our debt/gdp ratio. And $600k home at $100k gross pay??? Wtf? Back of the napkin math says you’re probably paying more than 40% of your net income on housing. No way, Josè!
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We won't pay down or pay off the debt. No will to do this by politicians or the populace.

What they'll try to do is slowly grow GDP and inflate our way down to a more normal level.

We were close to these levels after WWII and got the debt to GDP ratio all the way down to 31% of GDP (from 119%) until Regan got elected.

Best we can hope for is to slow the increase of debt at some point.
 
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#102
#102
Rasputin_Vol said:
And this is where I stopped reading. WOW...

This is the problem. That is 6Xs family income and you think (or the banks have convinced you) that this is ok or normal.
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Here's the link to the mortgage calculator.

This would equate to a 36% debt to income ratio.

Per Trulia:

*Debt-to-income affects how much you can borrow

The debt-to-income ratio (DTI) is your minimum monthly debt divided by your gross monthly income. The lower your DTI, the more you can borrow and the more options you’ll have.
  • 0-36%: Affordable
  • 37-42%: Stretching
  • 43% or higher: Aggressive
# # #

In case you missed it in Tennessee, the rest of the US is in what appears to be a huge housing bubble. 36% of a middle-income household in places like Boston buys you a half-room tree-fort. Here in the Outer Banks, we have literally have no middle-income housing available... particularly for single-income earners. It's a huge problem.
 
#103
#103
allvol123 said:
Dumb on many levels. One being the house buying scenario sees the ratio get better and better. You make more and the mortgage also decreases. While GDP can increase the debt isn’t decreasing.
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You're missing the point. The leverage (read: debt ratio) of us as individual consumers is far higher than the government. The end.
 
#105
#105
Vol737 said:
Problem is the debt/gdp ratio sucks the life out of the dollar as it continues to rise. Do we not think inflation won’t/can’t decouple from interest rate increases as we pile on more debt? We don’t need to pay off the debt, we need to pay it down and lower our debt/gdp ratio. And $600k home at $100k gross pay??? Wtf? Back of the napkin math says you’re probably paying more than 40% of your net income on housing. No way, Josè!
Click to expand...

Theory out the window...

united-states-currency.png
 
#107
#107
MontyPython said:
Here's the link to the mortgage calculator.

This would equate to a 36% debt to income ratio.

Per Trulia:

*Debt-to-income affects how much you can borrow

The debt-to-income ratio (DTI) is your minimum monthly debt divided by your gross monthly income. The lower your DTI, the more you can borrow and the more options you’ll have.
  • 0-36%: Affordable
  • 37-42%: Stretching
  • 43% or higher: Aggressive
# # #

In case you missed it in Tennessee, the rest of the US is in what appears to be a huge housing bubble. 36% of a middle-income household in places like Boston buys you a half-room tree-fort. Here in the Outer Banks, we have literally have no middle-income housing available... particularly for single-income earners. It's a huge problem.
Click to expand...
Right. And per that calculator, you would have to come up with a $91,000 down payment, have zero debts and better than a 720 credit score. In other words... you are looking like a dumbass. Stop digging.

As to your last paragraph, while single income earners' housing might be a 'problem' if banks start lending amounts to people that cannot service that debt, guess what is gonna happen. They don't have the luxury of those loans being guaranteed by the gubbamint. I could actually make an argument that buying a home is a dumb investment. Believe it or not, real estate does not always go up, and not all real estate makes money when you do the long term math. Buying for a tax deduction is an idiotic idea unless someone else is paying the mortgage.
 
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#108
#108
MontyPython said:
Here's the link to the mortgage calculator.

This would equate to a 36% debt to income ratio.

Per Trulia:

*Debt-to-income affects how much you can borrow

The debt-to-income ratio (DTI) is your minimum monthly debt divided by your gross monthly income. The lower your DTI, the more you can borrow and the more options you’ll have.
  • 0-36%: Affordable
  • 37-42%: Stretching
  • 43% or higher: Aggressive
# # #

In case you missed it in Tennessee, the rest of the US is in what appears to be a huge housing bubble. 36% of a middle-income household in places like Boston buys you a half-room tree-fort. Here in the Outer Banks, we have literally have no middle-income housing available... particularly for single-income earners. It's a huge problem.
Click to expand...

Just because you can qualify for a mortgage doesn't necessarily mean you can afford the mortgage.
 
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#111
#111
hog88 said:
Just because you can qualify for a mortgage doesn't necessarily mean you can afford the mortgage.
Click to expand...

What’s the Ideal Debt-to-Income Ratio for Mortgages?

Ideal Debt-to-Income Ratio for Mortgages

While 43% is the maximum debt-to-income ratio set by FHA guidelines for homebuyers, you could benefit from having a lower ratio. The ideal debt-to-income ratio for aspiring homeowners is at or below 36%.

# # #

Per my prior post, If you make $100K, you can buy a $600K house and have a debt to income ratio of 36%.
 
#112
#112
MontyPython said:
What’s the Ideal Debt-to-Income Ratio for Mortgages?

Ideal Debt-to-Income Ratio for Mortgages

While 43% is the maximum debt-to-income ratio set by FHA guidelines for homebuyers, you could benefit from having a lower ratio. The ideal debt-to-income ratio for aspiring homeowners is at or below 36%.

# # #

Per my prior post, If you make $100K, you can buy a $600K house and have a debt to income ratio of 36%.
Click to expand...

Again, what you can qualify for isn't necessarily what you can afford.
 
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#113
#113
MontyPython said:
Harsh words backed up by... nada. You serious, Clark?
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Spending, debt, and taxes are the only things i am serious about on our forum.

You earned the harsh words. I backed them with as much substance as you offered.
 
#114
#114
MontyPython said:
What’s the Ideal Debt-to-Income Ratio for Mortgages?

Ideal Debt-to-Income Ratio for Mortgages

While 43% is the maximum debt-to-income ratio set by FHA guidelines for homebuyers, you could benefit from having a lower ratio. The ideal debt-to-income ratio for aspiring homeowners is at or below 36%.

# # #

Per my prior post, If you make $100K, you can buy a $600K house and have a debt to income ratio of 36%.
Click to expand...
Your premise which you laid to support your house of cards is still faulty. Put some thought into it, Do some reading. And come back when your awareness has improved.
 
#115
#115
MontyPython said:
What’s the Ideal Debt-to-Income Ratio for Mortgages?

Ideal Debt-to-Income Ratio for Mortgages

While 43% is the maximum debt-to-income ratio set by FHA guidelines for homebuyers, you could benefit from having a lower ratio. The ideal debt-to-income ratio for aspiring homeowners is at or below 36%.

# # #

Per my prior post, If you make $100K, you can buy a $600K house and have a debt to income ratio of 36%.
Click to expand...
Mortgage or house? A $600k house should have a $480k mortgage (or less)
 
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#117
#117
utvolpj said:
Mortgage or house? A $600k house should have a $480k mortgage (or less)
Click to expand...

I don’t even know if people are still getting no doc loans and 100% financing. I do hear of people only putting down 10%, though. So run those numbers at a $540K mortgage on a gross of $100K…I still don’t want to be those people. I will say that given the recent housing boom and appreciation, if your plan had been to only be in the home for 2-3 years, sell it for a big profit and move on, then I could see managing a bigger mortgage for that time period as a calculated risk.
 
#118
#118
Gandalf said:
Both Biden and Trump are mere chumps compared to Obama, who added $8.7 trillion. Trump with the Covid protocol at $6.7 was not far behind though. GW in the middle of the war, could only muster $5.6. Biden is starting strong though. That $3 trillion BBB bill didnt make it but no doubt when the GOP takes over congress in the fall, they will be in a good position to negotiate some crazy spending on their own pork so they can sell out the voters.
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Trump did in 4 what it took Obama 8
 
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#119
#119
McDad said:
Your premise which you laid to support your house of cards is still faulty. Put some thought into it, Do some reading. And come back when your awareness has improved.
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Weak sauce, broseph.

You literally offer nothing, so no point in taking you seriously.
 
#122
#122
MontyPython said:
Heh. I'm in the company of Nobel Laureats. You... you're hanging with politicians du jour.
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Impressed with credentials of others, the fool merrily announces their folly as if it is his own. Resolute and wrong.

Their premise is wrong, Yours is wrong. I noted about a dozen failures in your idea on a scratch pad. But since you aren't really interested in learning, I see no value of pointing out your errors.
 
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#123
#123
McDad said:
Impressed with credentials of others, the fool merrily announces their folly as if it is his own. Resolute and wrong.

Their premise is wrong, Yours is wrong. I noted about a dozen failures in your idea on a scratch pad. But since you aren't really interested in learning, I see no value of pointing out your errors.
Click to expand...

Heh. Well good to know ol' McDad knows more than Nobel Laureate economists. We're certainly lucky to have you around.

Anytime you'd like to bring school back in session for us, I'll be here. :cool:
 
#124
#124
ClearwaterVol said:
Trump did in 4 what it took Obama 8
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Oh yeah, Trump went bigly, HUGH! Sadly though, the economy was going fantastic under Trump too. We could have used another 4 years of that. Had Covid not been foisted on us, they could have paid down some serious debt fairly fast since IRS would have been rolling in dough. Not that they would have used it for that but they could have :p
 
#125
#125
If you make $100k and buy a $600k house might as well buy a 30 year supply of Pepcid to keep the daily heartburn at bay.
 
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