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

To: RJA_ who wrote (102948)	5/2/2009 12:26:45 PM
From: Skeeter Bug	2 Recommendations Read Replies (1) \| Respond to of 110194

RJA, the debt doesn't get paid with cheapened money, it just makes the true cost of the debt less. i'm trying to play this cheap money theme in my personal life. i can't beat these SOBs and the dumber than door nails american public that applauds as they are robbed, but i can try and protect myself given that i know the game. all my life i've tried to pay down debts. i paid off a condo in full in jan 2000 when my friend urged me to put my funds in something that would grow - like tech stocks. ;-) i'm currently 9 years from paying off my primary residence. the game changed, however, and so does my strategy. i'm now refinancing out 30 years with a 4.75% rate and taking as much cash out as they will let me take out. within 10 year i expect my payment will be cheap and i'll be able to buy a 2nd house with cash (at 4.75%) when everyone else is mortgaging at 10% (which will kill current house valuations). perhaps your point is that the dollar would have to be devalued and interest rates kept low to truly cheapen the debt. that's a good point. nobody accused the idiots running the show of long term foresight.