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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (71410)	12/3/1999 3:31:00 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 132070

Wayne - [[Let's say I have 1 million invested in a business, with half being debt. If I wanted to stay in the same position in a no inflation environment I would hold a constant 500K debt load and replace assets from depreciation. In a high inflation environment, the 1 million of capital will have to get replaced over time with 2 million because of inflation. I'd be running sideways in real terms. ]] If actual business conditions aren't the problem, holding debt as inflation picks up is not a problem as you can repay with cheaper dollars. Investment is always a sunk cost. Whatever you have invested in is either a success or a failure. Every day brings new decisions to make or avoid. A past investment has no impact on future investment decisions, except psychologically. Regards, Don