- This topic has 425 replies, 28 voices, and was last updated 14 years ago by
Diego Mamani.
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December 18, 2010 at 11:20 AM #642780December 18, 2010 at 11:26 AM #641675
AK
Participant“Buying with monopoly money” worked for an earlier generation. It’s comforting to know that I have some protection against inflation. Of course this relies on the assumption that real incomes will keep up, or at least won’t fall too far behind.
December 18, 2010 at 11:26 AM #641747AK
Participant“Buying with monopoly money” worked for an earlier generation. It’s comforting to know that I have some protection against inflation. Of course this relies on the assumption that real incomes will keep up, or at least won’t fall too far behind.
December 18, 2010 at 11:26 AM #642328AK
Participant“Buying with monopoly money” worked for an earlier generation. It’s comforting to know that I have some protection against inflation. Of course this relies on the assumption that real incomes will keep up, or at least won’t fall too far behind.
December 18, 2010 at 11:26 AM #642464AK
Participant“Buying with monopoly money” worked for an earlier generation. It’s comforting to know that I have some protection against inflation. Of course this relies on the assumption that real incomes will keep up, or at least won’t fall too far behind.
December 18, 2010 at 11:26 AM #642785AK
Participant“Buying with monopoly money” worked for an earlier generation. It’s comforting to know that I have some protection against inflation. Of course this relies on the assumption that real incomes will keep up, or at least won’t fall too far behind.
December 18, 2010 at 12:01 PM #641685Rich Toscano
Keymaster[quote=AK]”Buying with monopoly money” worked for an earlier generation. It’s comforting to know that I have some protection against inflation. Of course this relies on the assumption that real incomes will keep up, or at least won’t fall too far behind.[/quote]
Actually I believe that it’s only required for nominal incomes to keep up. As long as your fixed payment is falling against your nominal income, you win, even if your real income is falling. (Nominal income, or nominal rents, or nominal rate of investment return… depends what you want to measure your mortgage against, but the point is it’s the nominal number that matters).
December 18, 2010 at 12:01 PM #641757Rich Toscano
Keymaster[quote=AK]”Buying with monopoly money” worked for an earlier generation. It’s comforting to know that I have some protection against inflation. Of course this relies on the assumption that real incomes will keep up, or at least won’t fall too far behind.[/quote]
Actually I believe that it’s only required for nominal incomes to keep up. As long as your fixed payment is falling against your nominal income, you win, even if your real income is falling. (Nominal income, or nominal rents, or nominal rate of investment return… depends what you want to measure your mortgage against, but the point is it’s the nominal number that matters).
December 18, 2010 at 12:01 PM #642338Rich Toscano
Keymaster[quote=AK]”Buying with monopoly money” worked for an earlier generation. It’s comforting to know that I have some protection against inflation. Of course this relies on the assumption that real incomes will keep up, or at least won’t fall too far behind.[/quote]
Actually I believe that it’s only required for nominal incomes to keep up. As long as your fixed payment is falling against your nominal income, you win, even if your real income is falling. (Nominal income, or nominal rents, or nominal rate of investment return… depends what you want to measure your mortgage against, but the point is it’s the nominal number that matters).
December 18, 2010 at 12:01 PM #642474Rich Toscano
Keymaster[quote=AK]”Buying with monopoly money” worked for an earlier generation. It’s comforting to know that I have some protection against inflation. Of course this relies on the assumption that real incomes will keep up, or at least won’t fall too far behind.[/quote]
Actually I believe that it’s only required for nominal incomes to keep up. As long as your fixed payment is falling against your nominal income, you win, even if your real income is falling. (Nominal income, or nominal rents, or nominal rate of investment return… depends what you want to measure your mortgage against, but the point is it’s the nominal number that matters).
December 18, 2010 at 12:01 PM #642795Rich Toscano
Keymaster[quote=AK]”Buying with monopoly money” worked for an earlier generation. It’s comforting to know that I have some protection against inflation. Of course this relies on the assumption that real incomes will keep up, or at least won’t fall too far behind.[/quote]
Actually I believe that it’s only required for nominal incomes to keep up. As long as your fixed payment is falling against your nominal income, you win, even if your real income is falling. (Nominal income, or nominal rents, or nominal rate of investment return… depends what you want to measure your mortgage against, but the point is it’s the nominal number that matters).
December 18, 2010 at 12:12 PM #641690Effective Demand
ParticipantRegarding interest rates and housing prices.
The issue is WHY rates are high or low. Rates are high because of high inflation or high growth, Rates are low because of low inflation (or deflation) or low growth. If you put high rates in a low growth scenario, it would no doubt effect housing prices, just as low rates in a high growth scenario would.
December 18, 2010 at 12:12 PM #641762Effective Demand
ParticipantRegarding interest rates and housing prices.
The issue is WHY rates are high or low. Rates are high because of high inflation or high growth, Rates are low because of low inflation (or deflation) or low growth. If you put high rates in a low growth scenario, it would no doubt effect housing prices, just as low rates in a high growth scenario would.
December 18, 2010 at 12:12 PM #642343Effective Demand
ParticipantRegarding interest rates and housing prices.
The issue is WHY rates are high or low. Rates are high because of high inflation or high growth, Rates are low because of low inflation (or deflation) or low growth. If you put high rates in a low growth scenario, it would no doubt effect housing prices, just as low rates in a high growth scenario would.
December 18, 2010 at 12:12 PM #642479Effective Demand
ParticipantRegarding interest rates and housing prices.
The issue is WHY rates are high or low. Rates are high because of high inflation or high growth, Rates are low because of low inflation (or deflation) or low growth. If you put high rates in a low growth scenario, it would no doubt effect housing prices, just as low rates in a high growth scenario would.
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