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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: neolib who wrote (751681)	11/7/2013 5:07:15 PM
From: longnshort	1 Recommendation Recommended By FJB Respond to of 1577229

Unbelievable Video: Pelosi Says Obamacare Implementation has ‘Gone Very Well’ 8 tpnn

To: neolib who wrote (751681)	11/7/2013 5:24:15 PM
From: mel221	Read Replies (2) \| Respond to of 1577229

Here are some money flows to consider. You have $1M networth that includes a 200K home. You can destroy your $200, 000 home. Its a complete loss and your networth is reduced by 200K. Now you can take out a loan (30 years) and rebuild that home. You now have a 200K home and a 200K loan... but your networth is still $200K less ...$800K. Now, you spend the 200K in a single year... and I would expect a 1 year increase in GDP due to that spending. However, you now are paying interest and principle on that loan that reduces your spending for remaining 29 years. At the end of 30 years, you have no loan and a fully paid off home. Your networth is still $800K. What has happened is you shifted 30 years of spending into a single year and then reduced your spending for the remaining 29. After 30 years, your net spending... your net contribution to GDP to replace your loss is 0. And for your efforts, you have reduced your networth by $200K.