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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (69865)9/16/2006 12:37:02 PM
From: John Vosilla  Read Replies (3) | Respond to of 110194
 
I don't think the prior posters would dispute what you say. If you are an investor is your ROE going to be greater with the money in the bank or somewhere else so as not to fall behind from loss of purchasing power. If you are in the deflation/soft depression camp you can let your money work for you by just keeping it in the bank, taking no risk and you purchasing power will grow significantly in coming years..

Now Manhattan was purchased for $24 roughly 400 years ago. At 4% a year that is equivalent to $156B today. What is the value of Manhattan land today? Here is an article showing at least $300 per developable foot in Manhattan and I ran some quick table cloth numbers to come up with many times that $156B figure as you would expect. The only conclusion is if you stick the money under a mattress in the long haul your purchasing power erodes considerably<g>

72.14.205.104



To: Wyätt Gwyön who wrote (69865)9/16/2006 12:50:35 PM
From: loantech  Read Replies (1) | Respond to of 110194
 
They are not richer just deeper in debt. Debt buys new shiny pickups and houses people cannot afford.



To: Wyätt Gwyön who wrote (69865)9/16/2006 1:32:16 PM
From: jackjc  Read Replies (1) | Respond to of 110194
 
Not a cliche, a fact.

And I personally have benefited greatly by buying land and
other properties with borrowed fiat and reaping the benefits
of paying it off on the cheap.

Yes we are wealthier because of technology and capital invested
but we would have been better off still with stable money.

And spending borrowed money gives the illusion of prosperity
for a time.

We have yet to see the downside of that.


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