Mish's Global Economic Trend Analysis Message Board

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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Perspective who wrote (35721)	8/23/2005 9:49:23 AM
From: Lee Lichterman III	Read Replies (3) of 116555

RE: >>I think the whole "flation" debate is overrated. Let's be specific, here. Most of us are worried about individual asset pricing, not the "general" level of prices. What most want to know is what will happen to the prices of: 1. houses 2. stocks 3. oil 4. gold 5. other commodities 6. manufactured goods 7. bonds 8. services << Actually I am more interested in teh "flation" debate for the purpose of DEBT. If we are going to inflate or hyperinflate, then one would be best off to go out and go into debt up to their eyeballs so they can pay off that debt with cheaper dollars later. If we are going to deflate, then one wants to hoard dollars, be debt free and wait to snatch up all the defaults and cheap goods down the road. Being wrong about the flation debate could prove disastrous. I am debt free right now and am starting to feel "left out" because I didn't rack up 4 mortgages and buy homes to flip out here in Calif where I could have doubled the value of those homes and made ultra high returns on my money, via taking on debt leverage. Imagine if 10 years from now, all the sheeple prove to be correct in having a zero savings rate and huge debt because Helicopter Ben dropped the money from the sky so to speak and all that debt went away. I think I read that the entire debt of Germany after their hyperinflation was only worth about a nickel in the end. I would gladly buy physical assets on credit to the tune of billions and pay you a nickel later. -ggg- On the other hand, if we deflate, I will gladly pay you a nickel later in the middle of the massive defaults to own an entire city or thousands of acres. -ggg- Get it right and the kids could be set up for life. The debt question is IMO more important than anything else. Good Luck, Lee

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