SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: louel who wrote (115448)1/9/2016 11:52:19 PM
From: Elroy Jetson1 Recommendation

Recommended By
clochard

  Respond to of 219648
 
In today's economy you have new opportunities to lose in new ways which hadn't been available since the 1930s.

My Dad's as programmed to fear inflation as you, but it's been a rough decade for inflation fans. In the 1930s people were able to lose even unleveraged real estate when rents couldn't pay the property tax. But even in stable cities like Los Angeles, where you didn't have taxes spiral due to excess foreclosures, people with very modest leverage lost income properties. Economic depressions, like the one we're experiencing are a different sort of animal.

It seem comforting to some to assume a central bank can always reliably provide inflation, but it's less reliable than you think when debt to income levels bring on a depression.