Economic Populist Commentary

Economic commentary by a pro-capitalist, economic populist. Demand-Side Economic theory. Consists of author's economic views. Questions & comments appreciated. Dissenting views are VERY welcome and encouraged. Main "agenda" is crafting and advocacy of a "populist" economic agenda. A secondary goal is prevention of an economic Armageddon. Encouraging open discussion of US economy.

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Location: Southern California, California, United States

The author is a physician by profession, and a "student economist" by necessity. The current status of our economy necessitates the latter. The intent of this blog is to explain and discuss economics in layman terms. It is designed to promote thought and discussion. It is written by a layman. Comments and critiques of these theories and letters are welcome and ENCOURAGED. Dissenting comments are also WELCOME! They form the basis for discussion.

Sunday, December 19, 2004





Anonymous Dan said...

I am a 36 year on a fixed income looking to purchase a used 39 foot boat that I will eventually live on. The particular make of boat I'm looking at was built and sold in 1978 and 1979 and is being offered from around 60K up to 120k depending on the condition. I have enough money to purchase the boat outright at 60K today, but would like to continue saving and hopefully purchase one in better condition in the future. My question is, with the economy as it is, am I better off saving in hopes of getting as much or more for my money in the future, or should I purchase today? Also, with interest rates low and having good credit, should I finance part of the boat now or should I attempt to wait and buy it outright later on? I know there is a lot to consider here, but I would love to hear anyone's response to my questions and how it relates to the current economy. I don't own a home and I don't earn a lot of money so this will be a significan purchase for me. Thanks in advance for anyone's comments and or advice. Dan

3:16 PM  
Blogger unlawflcombatnt said...


The biggest factor is how badly do you want the boat. Without knowing how strongly you feel about owning the boat, I'd always recommend saving your money. However, with inflation being what it is, your money will obviously buy less in the future. So if you're holding your money in cash or in a savings account, that would favor buying the boat now.

If you can wait, I'd advise you to put your money into Gold bullion. By this I mean buying gold coins, not putting money into some kind of "electronic" gold, gold stocks, or gold "pool." The dollar-value of the gold will increase as inflation increases. Unlike straight cash, your gold won't be worth less at a later date. In fact, from its lowest point in 2005, gold increased in value by over 20%.

Again, my advice on buying gold is based on the assumption that you want to "save up" until later. Using the boat as a residence is an interesting idea. Equivalent rents are still much cheaper than mortgage payments on homes. So renting still makes more sense than buying a "land-based" home. However, if you're in a place like Southern California, buying a boat and using it as a residence might be a good idea. $60,000 is a fraction of the cost of any homes in the area. What's more, even when the housing market crashes, $60,000 will still be cheaper than any homes in Southern California.

12:23 PM  
Anonymous Anonymous said...

Hi! I found your site while doing a search for bullion investing and collecting. Love your site! Here's a good site on gold, silver and platinum bullion collecting and investing that everyone who buys or is considering to buy any kind of bullion should check out. All items listed sell a auction prices.

3:22 PM  

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