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

To: RetiredNow who wrote (108875)	6/27/2010 9:23:35 PM
From: prometheus1976	3 Recommendations Read Replies (1) \| Respond to of 110194

Actually,both interest rates AND wages can lag the inflation rate indefinitely .. "they eventually move in the same direction."...but not at the same rate.. Your thesis is flawed by the fact that the basic necessities can rise more rapidly than your wages and interest income,and that rise can squeeze your income beyond your ability to service your debt.. Also,the banks could close,think Argentina, and you lose your money,but you still have the debt..It's called counter-party risk. or maybe not..your call, but i paid off my house and have nada debt.. regards,P1976