Consumerism Commentary - Latest Comments in Your Money Is Dumb

Re: Your Money Is Dumb

John Wedding — Tue, 16 Aug 2005 16:31:37 -0000

I refinanced recently and man, they were pushing me hard to take money out! Way too many people are "withdrawing" way too much from the First Bank of Home Sweet Home. Besides the temptation to pull out equity because of home appreciation, it's also equally tempting to fantasize about how much I could be making if I just took on a lot of debt and purchased a couple of being-built homes. There are too many people chasing too few deals to make that a reasonable outcome, though.

Re: Your Money Is Dumb

Jonathan — Tue, 16 Aug 2005 02:23:09 -0000

I think the official name for that is the Greater Fool Theory.

Re: Your Money Is Dumb

savvy saver — Fri, 12 Aug 2005 14:11:50 -0000

Before the bit dot-com bust, I remember reading an article that basically said (I'm paraphrasing here) "when you are buying ::insert dot-com company here::, a company that hasn't made a profit yet, at $100/share, you are basically betting that someone else will be even dumber than you and pay $120/share."

We were considering buying an investment property recently, but I'm really wary of the real estate market right now. I'm sure there are still good investments out there, but it is a lot of work to sort through the garbage. Since we aren't in a hurry, we decided to wait to see how it all shakes out.

erin
Savvy Saver