BYD may come to the US via Mexico
- Thread starter BMWTurboDzl
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That is a socialist viewpoint. Tax payers already pay for K-12 for any kid legal and otherwise and still many cannot pass a 6th grade exam on any subject and graduate anyway, now we should pay for college?
You want to go to collage you pay for it then get a job and pay the bill. The state and taxpayers are not a replacement for responsible parents.
Sure, the United States has a mixed economy, which combines characteristics of both capitalism and socialism.
All public schools and Universities are socialist. I went to San Jose State, graduated at 40, and now I pay more income taxes than most people make. So at least in my case, the ROI was pretty good for the tax payers. My education was pretty cheap to me, as my employers paid for 80% and more for tuition; sometimes books. As long as I got B's. Sometimes they even told me to take time off to further my education. After my SJS degree, work offered to send me to grad school at Santa Clara or even Stanford. Not too shabby for a homeless alcoholic that used to be a huge cost, even danger, to society. SJS and DeAnza Community are in my living trust.
FYI the CA economic strength is directly attributable to the public University system. Heck, Oppenheimer chose and taught at Berkeley, which was the US center of knowledge at the time. I'm sure you know his story... Loved the movie!
The US Military is socialist, public roads, Social Security, Medicare, Unemployment, Minimum wages, Energy subsidies, Water supplies and sewers, Mass transit systems, Municipally owned and built sports stadiums, etc. So much more.
I am hopeful that when I need nurses and doctors, Police, etc. to help me, family and friends they will be there. I am forever grateful to our men and women in the Military who give so much. Many of our Community Colleges 2 year degrees are impacted; the biggies are Electronics, Computer Tech, Law Enforcement, Nursing and Mechanics. DeAnza even added an EV section to their heralded Auto Technology degree.
You might have gathered I am very pro-education; that and AA saved my life. The ROI on education investment is off the freakin' charts. It betters society more than just about anything else. I continue to support it. Why do you think China is such a formidable competitor, not to mention foe? They graduate far more students than we do. That needs to change.
My parents never paid a nickel towards my education. You have mentioned you sent your children to college; kudos to you and well done. I'm sure you are proud of them and they are better for their education. Where did they graduate from, if I may ask? State school or private?
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No, their responsibility is to maximize the wealth of the shareholders, primarily through share price. Profits are different.
I agree 100%. Not everyone is cutout for college, why should we pay for it? People who want to go should pay for it themselves, get a scholarship, take a loan, which they have to pay back, no if ands or buts! Not something used as a bargaining chip for political reasons. They can get a job that pays for it, assuming they're smart enough that a company would be willing to foot the bill, or join the Military and earn it for serving this country. Joining the Military should be the only way taxpayers should have to foot the bill for someone's education after K-12. There are people who aren't cut out for college that can still earn a good living in a trade, so there's hope for them. All they need is good work ethics and a desire to get off the couch and look for a job. JMO, rant off.
Come on
And what determines share price other than speculation.
Sooner or later, it comes down to profit
I get what you’re saying, but you’re dissecting my statement and playing a word game with me
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I agree, but there is a huge disconnect in education and it starts at the top.
High schools are scored by the percentage of students that not only graduate, but go to college. Fewer companies offer any kind of internship or apprenticeships anymore. The few that do expect the kid to work for free. It wasn't always that way - when I was in college I had internships in the summer that paid pretty well that helped me fund my college education. My friends from High school went off to be apprentices at different things, and while they didn't make a lot - they were paid something. Doesn't much happen anymore.
College costs have ballooned ever since they made it so you can borrow forever. So there really is no option to work your way through school anymore. I have two at the state school. All in its at least $30K per year each, and its one of the cheapest state's out there. Even our out of state tuition is less than a lot of other state's in state now. I am lucky in that both my girls got academic scholarships, are in STEM, getting good grades, etc. We also saved money for years but not everyone has that luxury.
If we don't educate our kids were hosed long term. Of course, a liberal arts degree is probably needed for a few, but maybe 5% getting one these days. So there is a huge disconnect between what we as a society requires and where were actually pushing our kids to go, how much it costs, and how it gets paid for.
I was thinking in the context of negotiating with the expectation of a federal bailout.
It's overblown anticapitalistic fearmongering. The reality is that individuals own the majority of 1-to-4 unit properties. We're talking between 85%-90%. REITS and Investment corporations come in around 2.8% of 1-to-4 unit properties*.
https://sgp.fas.org/crs/misc/R47332.pdf
* Detached/Attached single-family, condo, duplex, triplex, quadraplex.
You have to be careful with data you haven't manipulated yourself.
Business insider did a study that said 44% of single family homes sold last year were purchased by what most laypeople would call corporations - Private equity, hedge funds, etc. I haven't studied the data - there are sources that say its not accurate - I leave that to others. But either way real estate is bought and priced at the margin, so you need to look at annual data - now all housing stock. https://www.cnbc.com/2023/02/21/how...le-family-homes-and-put-them-up-for-rent.html
The concern is that once wall street figures out how to buy houses, no individual can compete. Wall street borrows money at the best possible rate and never pays it back. They make interest only payments and when the note is due they roll it into a new note. Big business never pays anything back ever - so all they need to do is have cash flow for the coupon, which the fed keeps artificially low especially for them.
So individual investors wouldn't be able to compete going forward, because they actually have to pay things back.
I see your point, but I suggest many of our issues could be helped with further education. People need to learn personal finance. We need a qualified labor force; carpenters, plumbers, electricians, machinists and other tradesmen. Policemen. All kinds of medical workers. It goes on and on. Low cost Community colleges are perfect for that. Not everyone is cut out for college, but IMO K12 is not enough.
I agree with the Military benefit; my father, a son of poor Ukrainian immigrants, was sent to Yale during WW II. My grandniece is attending school in San Diego via her Marine Corps enlistment and tour in Kuwait. I am helping her navigate her college career as no one else in her family has made it past HS.
State colleges and Universities graduate the most students; Community College free tuition can save money over the 1st two years vs a 4 year school for both the student and tax payer.
It is fair to say that educated people tend to pay more taxes and tend to offer better skills to the community.
From a Geo-Political point, China is kicking our rear ends. That is unacceptable. Education is key.
@BMWTurboDzl
Wall Street has it figured out, it will be now, who has the most power, people vs the street.
They wanted to pass a bill late last year (NY Times has more on this but there is a paywall) which would force hedge funds etc to sell all their single family homes and outlaw buying in the future.
I find this shocking. I am a free market person but there is something wrong with a totally free market when 100s of billions can be spent by hedge funds buying single family homes to be resold at a higher cost to primary buyer or rented out. 7000 homes were bought in Charlotte by these funds.
Up to 30% of homes sold in a quarter are bought by corporations. Its a tough call, as a homeowner you should have the right to sell to the highest bidder as well but, I dont know, I can see this snowballing into hedge funds will be the middle man in home sales moving forward. This is one case we need a law prohibiting this. It's monopolizing the market to the American dream. It needs to be stopped.
We have corporations dictate what you will as an American will pay for a home. Not right.
There are two links here,
https://www.axios.com/local/charlot...e-neighborhoods-bought-sold-wall-street-82814
https://www.nytimes.com/2022/04/23/us/corporate-real-estate-investors-housing-market.html
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Apologies alarmguy; I am splitting hairs. In business there are specific terms used for things, that's all.Come on
And what determines share price other than speculation.
Sooner or later, it comes down to profit
I get what you’re saying, but you’re dissecting my statement and playing a word game with me
WS borrows short term so they constantly roll that debt and they get squeezed in a high rate environment.
In any case if interest rates are artificially manipulated then the market breaks and investors go shopping for yield. You can't expect the same entities who promote/encourage rate manipulation to "put a stop" to institutional investors snapping up properties where the builder/developer got caught in a high rate environment.
See my response to SC Maintenance below.
They do not borrow short term. Typical wall street note right now has an average duration of 8.98 years. Current bond spread from UST10 to Corporate - all categories - is under 100 basis points. Investment grade is closer to 60 basis points - which is what Single family holdings would likely be.
So - current 30 year mortgage which will be held less than 10 years is 7.721% - requires interest and principal payments
Current 9 year corporate bond investment grade is around 5%, interest only payment required.
If you want to know what happens when these funds hit rising rates - take a look at the federal reserve balance sheet around 2008.
I'm talking about during the acquisition phase and I don't think any use bonds because they are their own client (Hedge funds, Pension funds, etc).
That's all fine, and I agree 100% they should teach personal finance at some point during the taxpayer financed K-12th grade. After that college is on the student, via what I mentioned earlier. Taxpayers paid plenty to get them through 12th grade, let a boss, a loan [that must be paid back], or the Military take over after that in the form of the GI bill. Hey if they're smart enough, or athletic they can even get a scholarship, more power to them. I know plenty of successful tradesman and small business owners who did not go to college. All a person needs is some ambition and drive to succeed.
So you are against State colleges and Universities?
I went to a State University for two years, and paid my own way. I also went to a private school and paid my own way. I took a loan for that, and paid it off.
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