Stimulus Checks

[ShimshonK]

Real Estate will outlive whatever regime that puts damper on its growth.

That logic only works if you're buying it cash

[mercaz1]

You mean NYC or the federal government? Either way, Real Estate will outlive whatever regime that puts damper on its growth.

That logic only works if you're buying it cash

also only works untill the regime takes it away from you and gives it to someone else

[AsherO]

That logic only works if you're buying it cash

If you mortgage it and the dollar becomes devalued that’s even better.

[ShimshonK]

If you mortgage it and the dollar becomes devalued that’s even better.

Sure, but you pointed out a reason not to be concerned with short term real estate declines, whereas most operators are leveraging at 75-80% and would be in trouble if that would occur.

[AsherO]

Sure, but you pointed out a reason not to be concerned with short term real estate declines, whereas most operators are leveraging at 75-80% and would be in trouble if that would occur.

Context for this discussion:

My question is what can I invest my money in that will hyper inflate with it?

Follow the discussion from that post forward. Your points are noted and I agree w/r/t current professional real estate investors, but that’s not what we’re talking about here.

[PlatinumGuy]

Hyperinflation is when all stores of value decrease relative to immediate necessities like food and labor. A true hyperinflation trade would be sugar, wheat, etc, although that it is in no way indicated by any macro economic condition in the developed world. It took Germany decades of rampant inflation before hyperflation came.

[AsherO]

Hyperinflation is when all stores of value decrease relative to immediate necessities like food and labor. A true hyperinflation trade would be sugar, wheat, etc, although that it is in no way indicated by any macro economic condition in the developed world. It took Germany decades of rampant inflation before hyperflation came.

If we had hyperinflation commodity contracts would probably lose liquidity (for the underlying commodity). Besides, what would you trade your sugar or wheat for then? Gold?

ETA: Hyperinflation happened much quicker in Zimbabwe.

[PlatinumGuy]

If we had hyperinflation commodity contracts would probably lose liquidity (for the underlying commodity). Besides, what would you trade your sugar or wheat for then? Gold?

ETA: Hyperinflation happened much quicker in Zimbabwe.

If it's isolated like Zimbabwe, you can trade your sugar/wheat for forex which didn't inflate.

If there is USD/global hyperinflation, you trade/barter your sugar/wheat for other immediate survival necessities or assets you believe to be worth more when the hyperinflation ends (gold/real estate/stocks). If hyperinflation doesn't end, survival necessities are the best assets to hold onto as they will always appreciate more than others.

Again, hyperinflation is incredibly far off. Even if the US deficit increases by $5T per year it will likely take at least a decade. Hyperinflation is result of uncertainty more than just inflation. So long as Congress spends slowly with plentiful deliberation hyperinflation is virtually impossible.

[ShimshonK]

Context for this discussion:

Follow the discussion from that post forward. Your points are noted and I agree w/r/t current professional real estate investors, but that’s not what we’re talking about here.

Yep, saw the convo, understand your point.

[PlatinumGuy]

IINM post WW2 stocks returned to their prewar real value decades sooner than real estate. Most stock value is much more intrinsic than real estate.

[yesitsme]

NU!! its Friday

[Kobe Bryant]

Again, hyperinflation is incredibly far off. Even if the US deficit increases by $5T per year it will likely take at least a decade. Hyperinflation is result of uncertainty more than just inflation. So long as Congress spends slowly with plentiful deliberation hyperinflation is virtually impossible.

Disagree. I hope we never get to find out....I’ve seen hyperinflation and it ain’t pretty.

[AsherO]

Disagree. I hope we never get to find out....I’ve seen hyperinflation and it ain’t pretty.

Seen where? South America?

[Kobe Bryant]

Seen where? South America?

Correct.

[yesitsme]

Stimulus check passes Congress   Friday, Feb. 26   Friday, March 12
Stimulus bill signed into law   Monday, March 1   Sunday, March 14
First direct deposit check sent   Week of March 8   Week of March 22

[Jellybelly]

Stimulus check passes Congress   Friday, Feb. 26   Friday, March 12
Stimulus bill signed into law   Monday, March 1   Sunday, March 14
First direct deposit check sent   Week of March 8   Week of March 22

So basically it’s kimcha dipischa

[cgr]

Writeup on the bill introduced on Friday in my signature block below.

[yeshivabucher]

For those wondering I was able to claim the stimulus checks from 2020 on my taxes this year due to the fact that for 2019 I was claimed as a dependent. this year when I claim myself I was able to get a refund for the checks that i missed

[Jack out of the box]

For those wondering I was able to claim the stimulus checks from 2020 on my taxes this year due to the fact that for 2019 I was claimed as a dependent. this year when I claim myself I was able to get a refund for the checks that i missed

This is a 2020 credit so the laws about it are as applied to the 2020 tax year.

[YitzyS]

BTW, for those who were wondering if the IRS would be backed up on refunds this year because of the stimulus activity, seems like they are not. My taxes were filed one week ago. Refund status shows as approved, money set to my in my account in the next 2 days.