Usury is predatory, and your credit score is a reflection on how well you play the game. High credit score, this means you are consider reliable in paying back loans (at interest, aka usury). Is that a bad thing?
Well, yes. The credit score is an assessment of how you play the game. Do you take loans and then leverage them into payback? Have you amassed enough personal wealth to be "good for it?"
Have you by insight or survivorship bias gained exceptional wealth through:
Wealth #1 Finance
Wealth # 2 Investment
Wealth #3 Real Estate
( F I R E )
All this is based on FED policy, and the FED has now run out of options, what we see is something new. A mechanical reaction, credit deflation, largely misunderstood, to credit inflation, known perfectly well.
Low credit score means either you are not a good risk, or there is no history (because you neither take not make loans at interest.) Is this a bad thing? Well, no.
You just no better, and preferred not to get in the game. Those who made money with F I R E are going to find the game no longer works as it did... when that exceptional wealth evaporates, then what?
Watch credit deflation. It's a fascinating new development.
Feel free to forward this by email to three of your friends.
Well, yes. The credit score is an assessment of how you play the game. Do you take loans and then leverage them into payback? Have you amassed enough personal wealth to be "good for it?"
Have you by insight or survivorship bias gained exceptional wealth through:
Wealth #1 Finance
Wealth # 2 Investment
Wealth #3 Real Estate
( F I R E )
All this is based on FED policy, and the FED has now run out of options, what we see is something new. A mechanical reaction, credit deflation, largely misunderstood, to credit inflation, known perfectly well.
Low credit score means either you are not a good risk, or there is no history (because you neither take not make loans at interest.) Is this a bad thing? Well, no.
You just no better, and preferred not to get in the game. Those who made money with F I R E are going to find the game no longer works as it did... when that exceptional wealth evaporates, then what?
Watch credit deflation. It's a fascinating new development.
Feel free to forward this by email to three of your friends.
2 comments:
I find your latest comments about credit deflation interesting, especially when it comes to asset prices in those countries concerned.
I own an apartment in Stockholm, Sweden, and I am getting slightly worried because of the extraordinary rise in real estate prices during the past few years. I do not know much about economics but it is just a feeling I am having.
Should I sell, pay back my loan and start renting instead?
I am not an investment advisor, but if you own it, and if you like, it keep it. If it drops by 50%, so will everything else. if you owe a bundle on it, then maybe get out while the getting is good and rent. I suspect the next 20-40 years will be a time to rent, especially as taxes necessarily go up, and you can write off some rent, but not an owned home, without a big "gotcha" later. Again, all this assumes self-employment.
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