Inflation In The Frum Community

[EliJelly]

So in light of the larger amount of stimulus we received, coupled with other sorts of increased government assistance, inflation in our community is far more inevitable, and sooner to happen here than in the general society.

What comes to mind first is summer houses and bungalow colonies in the Catskills. Demand had skyrocketed and with it the prices. Too many people have made an easy dollar to miss country this year, or to be satisfied with going just for a half summer. The result is that a 1 1/2 bedroom jungalow start's at a minimum of $6k for the summer, and by now even availability for these are non existent.

Sales of summer houses are also at a record high, all developments are selling out extremely fast, and the reason for that is unarguably the EIDL loans which people are now using for purchasing a summer home.

What other areas of inflation have you seen already?

[farmbochur]

Shortage of pre school teachers bc wages < unemployment

[Mordyk]

I don't call it inflation.  I call it irrational spending that will crush some many people's lives. Using EIDL to purchase property,  they are essentially buying property 100% with borrowed funds. Once they start making the payments...

This extra money that should be looked at as a blessing will unfortunately be a curse for many.

[EliJelly]

I don't call it inflation.  I call it irrational spending that will crush some many people's lives. Using EIDL to purchase property,  they are essentially buying property 100% with borrowed funds. Once they start making the payments...

This extra money that should be looked at as a blessing will unfortunately be a curse for many.

100% so in regards to the EIDL loans. Although many can probably afford the payments and just make good use of the liquid cash they got, as these houses cannot be purchased with conventional mortgages.

But the phenomenon at large is a result of easy money, which is textbook inflation, when money becomes cheap.

[Mordyk]

100% so in regards to the EIDL loans. Although many can probably afford the payments and just make good use of the liquid cash they got, as these houses cannot be purchased with conventional mortgages.

But the phenomenon at large is a result of easy money, which is textbook inflation, when money becomes cheap.

I think there is a difference between temporary influx of cash(that is being used not wisely), vs long term inflation that cheapens money. 

[Lurker]

I think there is a difference between temporary influx of cash(that is being used not wisely), vs long term inflation that cheapens money. 

100%. And when people raise their standard of living because of a temporary influx of cash, it creates an unsustainable bubble, leading to the financial ruin of many. When those people are all concentrated in small communities, the impact can be devastating.

[Lurker]

But the phenomenon at large is a result of easy money, which is textbook inflation, when money becomes cheap.

The supply isn't constant, an the money isn't staying in circulation within the community, so the devaluation of money for those in the community is very, very temporary.

[hvaces42]

This money will definitely create a real property bubble in our communities.

[El Capitan]

Not sure if this is the right thread but what would folks here suggest to the average yeshiva bochur who just made 20-25k in benefits? How to invest it etc. Basically what would be the best way to protect and grow the money?

[zh cohen]

Not sure if this is the right thread but what would folks here suggest to the average yeshiva bochur who just made 20-25k in benefits? How to invest it etc. Basically what would be the best way to protect and grow the money?

He should make sure to put some aside for legal fees...

[zh cohen]

the EIDL loans which people are now using for purchasing a summer home.

Seting aside the question of justifying this as a business expense, didn't the EIDL explicitly exclude using the money for "acquisition of fixed assets”?

[AsherO]

Seting aside the question of justifying this as a business expense, didn't the EIDL explicitly exclude using the money for "acquisition of fixed assets”?

What about if you used the EIDL to pay employees, and saved enough on payroll to buy a summer home?

[Sammy82]

Not sure if this is the right thread but what would folks here suggest to the average yeshiva bochur who just made 20-25k in benefits? How to invest it etc. Basically what would be the best way to protect and grow the money?

Where's the 20-25k coming from?  I could use some of that.

[El Capitan]

Where's the 20-25k coming from?  I could use some of that.

Unemployment. Stimulus. Etc

[El Capitan]

He should make sure to put some aside for legal fees...

Explain please? Excuse my ignorance

[Lurker]

Explain please? Excuse my ignorance

If everything is above board, you have nothing to worry about.

[Euclid]

Is this the obesity issue thread?

[Lurker]

Is this the obesity issue thread?

Yes, in the sense that PGFHGS.

[Kobe Bryant]

Not sure if this is the right thread but what would folks here suggest to the average yeshiva bochur who just made 20-25k in benefits? How to invest it etc. Basically what would be the best way to protect and grow the money?

Invest it in the market and forget about it.

[zh cohen]

Explain please? Excuse my ignorance

The average yeshiva bochur was not working and therefore should not have qualified for unemployment.

The average yeshiva bochur can be claimed by his parents as a dependent, and therefore should not have qualified for the stimulus.

My very uneducated opinion is that it is unlikely that they will put individuals in prison for this kind of fraud (unless they get caught up in something bigger), but it is more likely that they demand repayment at some point in the future.