DeNiro is right on the money for the case where we get a very bad late 70s style inflation. If you can borrow money today at 6%, it very well may be 12% or more if inflation gets out of hand (some would say it already is). When this happens, salaries will rise quickly and pretty soon we’re all millionaires in American pesos. Suddenly the guy with the $700K home loan at 6% looks like a financial genius.

Damn I hope this doesn’t happen because I’m way too scared to borrow big for a home right now…