Comments on: Reaping http://www.greaterfool.ca/2009/11/09/reaping/ Book and Weblog - Authored by Garth Turner Wed, 08 Feb 2012 17:27:12 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Nick http://www.greaterfool.ca/2009/11/09/reaping/comment-page-2/#comment-50090 Nick Sun, 15 Nov 2009 23:57:27 +0000 http://www.greaterfool.ca/?p=3979#comment-50090 If your home servicing costs are well within your income (say 50%) look to increase your mortgage to ~75% and begin to put the money in RRSP's. Take the tax return and invest as suggested. If the markets move up lots you can sell to cash out the mortage. If the mortgage becomes a burden you can sell to bring the mortgage back in line with your own affordablity. <em>I sure hope you are not a financial advisor. -- Garth</em> If your home servicing costs are well within your income (say 50%) look to increase your mortgage to ~75% and begin to put the money in RRSP’s. Take the tax return and invest as suggested. If the markets move up lots you can sell to cash out the mortage. If the mortgage becomes a burden you can sell to bring the mortgage back in line with your own affordablity.

I sure hope you are not a financial advisor. — Garth

]]> By: latinlife http://www.greaterfool.ca/2009/11/09/reaping/comment-page-2/#comment-49684 latinlife Thu, 12 Nov 2009 00:43:13 +0000 http://www.greaterfool.ca/?p=3979#comment-49684 GOLD $1,120.70 GOLD
$1,120.70

]]> By: Taxpayer like you http://www.greaterfool.ca/2009/11/09/reaping/comment-page-2/#comment-49618 Taxpayer like you Wed, 11 Nov 2009 15:32:23 +0000 http://www.greaterfool.ca/?p=3979#comment-49618 86 DA - That story has been around this blog several times now. It is interesting to see how prople interpret it. I see it more of a story of credit liquidity. The tourist simply plays the role of bank. He lends money at zero percent (OK a stupid bank). The hotelier wisely uses the money to pay off other debt which is existing. As you note, no growth. Every party's books still balance, with the hundred dollars simply cancelling itself out of both the asset and liability columns. What the story needs is an update. Tourist drops C-note on front desk. Holtelier spends it on bottle of wine, gets drunk, tries to get laid from hooker who still owes him $100. Trucker SOL, cant make payments, goes bankrupt, Baker etc shut down as goods not delivered. Tourist screams he's been ripped off. Needs at least $200 to "inject liquidity". Govt bails him out. He leaves town with $100 more than what he came with. Or spends it on hooker first, asks for more, then leaves town. 86 DA – That story has been around this blog several times now. It is interesting to see how prople interpret it.
I see it more of a story of credit liquidity. The tourist simply plays the role of bank. He lends money at zero percent (OK a stupid bank). The hotelier wisely uses the money to pay off other debt which is existing. As you note, no growth. Every party’s books still balance, with
the hundred dollars simply cancelling itself out of both
the asset and liability columns.

What the story needs is an update. Tourist drops C-note on front desk. Holtelier spends it on bottle of wine, gets drunk, tries to get laid from hooker who still owes him $100. Trucker SOL, cant make payments, goes bankrupt,
Baker etc shut down as goods not delivered. Tourist screams he’s been ripped off. Needs at least $200 to “inject liquidity”. Govt bails him out. He leaves town with $100 more than what he came with. Or spends it on hooker first, asks for more, then leaves town.

]]> By: Devil's Advocate http://www.greaterfool.ca/2009/11/09/reaping/comment-page-2/#comment-49595 Devil's Advocate Wed, 11 Nov 2009 10:48:28 +0000 http://www.greaterfool.ca/?p=3979#comment-49595 #68 Schroedinger's Bull You miss the debt aspect side of the story. There is no growth in this model... Get it? #68 Schroedinger’s Bull

You miss the debt aspect side of the story. There is no growth in this model…

Get it?

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