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

To: Thomas M. who wrote (83404)	9/1/2000 11:52:56 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Tom, I have never thought much of borrowing money at a high rate to invest it at a low rate. I get the guy's argument, but I don't see how having a ton of debt helps you when your property declines in value. It does work out fine if real estate appreciates, sort of like a covered call. But in a down market or flat market, it sucks. And it also underperforms real estate greatly in an up market. That sounds like three strikes to me. <g> Here would be my suggestion. Pay off the mortgage. Put the interest rate differential into T-Bills. Nope, any hedge that involves a large debt at a high rate turns me off.