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Originally Posted by pandy
That's what he said in the article, that companies are buying their own stock. I wasn't aware of the size of all this corporate debt. This makes the stock market look even more risky right now.
This low interest phase that we've been in for so long now seems dangerous. It forces people into stocks who shouldn't be in stocks, people and companies over leverage because they can borrow so cheap, it artificially pushes up prices of real estate. And now the fed is in a catch-22 situation where they're afraid to raise interest rates but we'd be better off higher interest rates.
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Exactly right👍 And it's been going on two decades now.
Those who used to retire and live off interest are non existent anymore. It used to be you could move to real estate. But we are now recreating the boom of ten years ago. What little cash I had, I was making nothing on. I was not going back into the market. So I paid of my real estate and dumped my rental property before the next bubble bursts. Just this month FHA loans dropped some credit requirements below 550 FICO.
I decided to keep one property that will provide me steady income in my later years ( most probably my wife) and settle in to watch what happens. It's not the same world our parents faced. And our children are screwed.
