clearly you do not understand basic finance if you view debt as a bad thing...

Lost in translation? Google is your friend :)

P.S. Americans buried under debt - Economy

ah right in the united states we have very low interest rates so it is cheap to borrow money while in russia I'd imagine its 20%+ to borrow money so I understand now

but I guess gotta have those interest rates sky high to make the ruble not completely worthless

You didn't get it. As a "3rd-world" citizen I don't need any credits. I can pay from my pocket in cash (with all those low GDP's, HDI's and other shit). In other words, you may have a home, a car etc, but you have to spend almost all your earnings to pay for your loans, obamacare, education of your kids, high taxes (you know most of them will be spent on unnecessary huge army) etc. I also have a home, a car, my son is an university student etc, but I don't pay for that (no credits -> no payments). I don't owe anything to anyone. I pay my 6% tax and that's all. So all my earnings belong to me. I can spend them to buy things, to travel, for entertainment etc and drop the rest to my bank accounts. It's a difference in our mentality. The people here don't want to owe anything to anybody. This is what we call a financial freedom. You can't be free if your house or car actually belong to bank. Do you remember the episode in the Simpsons where Ned Flanders lost his home because he was not able to pay for the loan? I don't want to live like that. Mine is mine.

we don't "need" it either... but what idiot would spend half his life saving to buy a house with cash? ... when you can just take out a loan at 3% interest rate, and buy it today?

you are just saying you "don't need" it, because there is no other option available to you... it's either pay with cash, or pay 20% interest rate...

this, and every other discussion with Russians, reminds me of: The Fox and the Grapes

Pfff... You can rent it as long as you want (not really different to have a house pledged to the bank). Don't see any problem there. As about spending a half of life. Course when you pay high taxes, pay for obamacare, for credits etc, course you may spend not just a half but a whole your live to save for a home. But if you are free of all that shit, you can spend just a few years to accumulate the necessary money. That's just a radically different approach.

You don't buy it. Bank buys and owns it while you pay to that bank for the loan. You are not owner. You are "owner".

Yeah and you can currently do that right now because you make your money in USD and other non ruble currency

No, the person buying the house is actually the owner. Sorry if you don't understand how a mortgage loan works

As Woj said, why would I spend 100% of my money on a house, when I can put 20% down and pay 3% interest and invest the rest at well over 3% interest...

Even the average american understand borrow at 3% and invest at 6%... I would understand that the average russian may not, but you are a business owner and should be a little more savvy to understand how to use leverage to make money.

We live in globalized world, so I can earn in anything. Nobody can forbid me to do that. For example, I'm earning in Euros even more than in dollars :)

I do, but you don't. If you can't pay for the loan, you will lose the house. That's as simple as this :)

An average Russian can simple rent it for even a lesser % :winkwink:

Thanks for the entertainment, cupcake :clown:clown:clown:clown

While your country men starve...


anyway if you don't pay property taxes on a house but "own" it outright you will also lose the house. So you could argue that you never own any property...

But that is silly, and yes you own a house with a mortgage on it. Actually right now I would suggest anyone with a paid off house in the united states to pull the equity out and invest it

Things you can't do in russia because russia's economy is collapsing and its going to be many years before we get back to $90-100 a barrel oil. If ever...

and wow once again you totally missed the point

I forget just because people own internet businesses that they don't necessarily understand the basics of actual business


aka most every gfy superstar that got rich and thought it was a good idea to open a restaurant

Excuse me?

In the USA? Yes, but not here. They can take your home if you don't pay a tax for it. BTW, the property taxes here are just nothing. It's something like 0.02% from the cost of house per year. Something about $200 a year for a one million dollar house.

It is declining, but not collapsing for sure. You are misinformed again, Sir :)

This is a very different thing. A very offtopic one.

http://i.imgur.com/aiRcUhf.jpg

Of course :1orglaugh


meanwhile in the USA...


http://i.imgur.com/qsldei3.jpg

Pfff. You're such a clown :clown :1orglaugh

There is no trust in the FSU society, today bank is live, tomorrow it's down. It's a spot-life society.

unless, of course the rate of credit will go up in next 5-10 years, along with interest rates... and there will be subprime No2, once again :1orglaugh:1orglaugh

most americans use 30 year fixed rate loans... so... who cares?

3rd world logic. They don't get it :2 cents:

They kind of remind me of the doomsday preppers that were running around here back in 2007 saying by 2012 we'd be living in tents eating Chef Boy-Ar-Dee, meanwhile between my gold, stocks and real estate I've doubled my net worth (while they're probably sitting in a tent waiting for the world to end :1orglaugh )

Do you ruskie understand that's it's for good if bank that gave you a loan will disappear? You won't need to pay anymore :winkwink:

300 Rubles and mad views.

Only white trailer park trash like you will :1orglaugh:1orglaugh:1orglaugh

http://gagnamite.com/wp-content/uplo...hat_treble.png

mad views => good sales ;)

That's understood. In Russia, and other FSU countries, people experience currency devaluation, political and economic stress each 5-10 years on a scale that is any near standard fixed rate, shit hits the fan real hard and you can't really plan ahead much, more, the financial markets are not fully available to the investors.

It seems that you don't understand what happened with subprime No 1.

not really. if house mortage in US is of "fixed rate", for 30 years its something really strange for me and first time I hear about something like that. :1orglaugh
Usually your monthly mortage to the bank depends on current interest rates, which - if they change - get updated every 3 or 6 months.
but 30 years fixed interest rate for house mortage ?:1orglaugh
wow , thats really interesting. so lets say that you borrow 500,000 dollars for 30 years with steady 2 %, and later its always like that ? regardless, if, lets say -> FED interest rates will be 8 %/ yearly 4 years later ?
if its true, then its truly amazing....and I wonder how the banks make themselves up for it...with other high fee ? or what ?
unless you make agreement with the bank that for example you will ALWAYS pay 5 % of interests/ yearly, and now, for example these rates are around 2 %....
its not the case of Central, Eastern or Western Europe. its just common sense.
just look at the amount of homeless people in Spain - which isnt FSU at all, who after some time stopped paying their monthly due to the bank... and now live on the streets
disaster can happen everywhere, common sense is to avoid it

so the kremlin/putin/moscow has issued a list of possible reasons for the murder, including the west did it, but none of which was the fact nemtsov was the opposition leader.




"In the 72 hours since Boris Nemtsov was murdered, the Kremlin has floated numerous explanations for his death. Vladimir Putin has called his killing a “provocation”. It’s a strange word. What Putin means is that whoever murdered Nemtsov did so to discredit the state. Since the state is the primary victim here, the state can’t be responsible, this logic runs.

Others have blamed Islamist extremists. Or Ukrainian fascists. Putin’s ally Ramzan Kadyrov, Chechnya’s thuggish president, has accused “western spy agencies”, an old favourite. The muck-raking website Lifenews.ru, which has close links to the FSB, Putin’s former spy agency, has pointed the finger at Nemtsov’s colourful love life. At the time of his murder, he was walking past the Kremlin with a Ukrainian model, it noted.

The only explanation not being given in Moscow for Nemtsov’s killing late on Friday evening is the blindingly obvious one: that he was murdered for his opposition activities. Specifically, for his very public criticism of Putin’s secret war in Ukraine in which at least 6,000 people have been killed over the past year"

I understand. credits were just given to the bums who have no means to pay them.
because "reliable" agencies (smaller than Moody though) seen nothing wrong with lending money to the bums ;-)

Than maybe you should stop wasting everyone else's time and learn a thing or two bore trying to argue about it. CyberSEO is doing fine job at it without your help.

Russia 1% can afford.

http://sovetneg.ru/wp-content/upload.../10/image1.jpg

99% lives here

http://stroi.mos.ru/uploads/user_fil...ki/1605_am.jpg

They were given loans based of their current disposable income situation. Some were given by sub-prime loan institutions specializing at taking higher risk but taking higher returns. Risk and returns. Don't they teach you anything at Moscow State Institutes of Wall Rugs? I thought that free education was so damn good.

Yeah these are common place in first world countries...as a matter of fact, we've had them since the begining of the 19th century :1orglaugh

I will google it up. but probably its too goo to be true and there is a catch somewhere, yet you cant spot it, because you are from US :1orglaugh:1orglaugh:1orglaugh
j/k

I'm not from Russia, told you 5 times already, but you seem to be deaf or blind.... or both

Also, let's say you take a out 15 year mortgage for 500k @ 3% and the rate happens to drop to 1%, you can re-finance the mortgage @ 1% too :2 cents:

Imagine that :):):):)

btw. did you check ratings of mayor financial institutions and countries by your "reliable" ratings agencies ? or info from 2011 is outdated for you ?:1orglaugh:1orglaugh
and you still believe them like unspoiled virgin chasing american ideals ?:1orglaugh

hard to imagine... :winkwink:
My guess is that banks fees has to be huge on that...

Mortgage Rates Today - Compare Home Loan Rates at Bankrate.com


Depends some charge .5 -1, 2 points (point is a fee equal to % of the loan)

Read about points here

Fixed means fixed, say 4% a year, I confirm that, been to USA many times, spoke to home owners. There is also a floating rate they offer om the market.

good to know :thumbsup
so 1 % fee of 500,000 mortage is 5,000 us...