couple of things to worry about for renters

[kewp]

Unless local salaries increase 100% as well I don’t see that happening.

I suppose cash-rich foreigners could buy up a bunch of assets, but I don’t see that for anything but the best properties.

[RDeNiro]

I just read crash proof. I’m still digesting the info on the book. What Schiff says makes sense. But I can’t but see his arguments too simplistic. I think he is missing part of the picture. Some type of government bail out, maybe not from the US, but from the asian governments. If the value of the dollar colapses, the inflation will bring the fundamentals up dramatically. But interest rates will be so high that people with their $500k houses will be better off (if they locked their interest at 6%)

[RDeNiro]

I just read crash proof. I’m still digesting the info on the book. What Schiff says makes sense. But I can’t but see his arguments too simplistic. I think he is missing part of the picture. Some type of government bail out, maybe not from the US, but from the asian governments. If the value of the dollar colapses, the inflation will bring the fundamentals up dramatically. But interest rates will be so high that people with their $500k houses will be better off (if they locked their interest at 6%)

[RDeNiro]

I just read crash proof. I’m still digesting the info on the book. What Schiff says makes sense. But I can’t but see his arguments too simplistic. I think he is missing part of the picture. Some type of government bail out, maybe not from the US, but from the asian governments. If the value of the dollar colapses, the inflation will bring the fundamentals up dramatically. But interest rates will be so high that people with their $500k houses will be better off (if they locked their interest at 6%)

[RDeNiro]

I just read crash proof. I’m still digesting the info on the book. What Schiff says makes sense. But I can’t but see his arguments too simplistic. I think he is missing part of the picture. Some type of government bail out, maybe not from the US, but from the asian governments. If the value of the dollar colapses, the inflation will bring the fundamentals up dramatically. But interest rates will be so high that people with their $500k houses will be better off (if they locked their interest at 6%)

[RDeNiro]

I just read crash proof. I’m still digesting the info on the book. What Schiff says makes sense. But I can’t but see his arguments too simplistic. I think he is missing part of the picture. Some type of government bail out, maybe not from the US, but from the asian governments. If the value of the dollar colapses, the inflation will bring the fundamentals up dramatically. But interest rates will be so high that people with their $500k houses will be better off (if they locked their interest at 6%)

[jyurasek02]

I am just finishing the book also, and trying to wrap my brain around all of the topics covered. What I think I get out of it is that interest rates will rise in the coming recession due to inflation (true inflation as he says, not CPI) and the potential pullout of overseas investors. I discussed this topic in my economics class at business school and one person stated the whole reason the gov is doing this is to sell off our debt for cheaper than what we borrowed at. In other words, driving the dollar down and forcing overseas investors to cash out, basically allows us to pay off the debt with weak dollars. Not sure if this holds water though.

[jyurasek02]

I am just finishing the book also, and trying to wrap my brain around all of the topics covered. What I think I get out of it is that interest rates will rise in the coming recession due to inflation (true inflation as he says, not CPI) and the potential pullout of overseas investors. I discussed this topic in my economics class at business school and one person stated the whole reason the gov is doing this is to sell off our debt for cheaper than what we borrowed at. In other words, driving the dollar down and forcing overseas investors to cash out, basically allows us to pay off the debt with weak dollars. Not sure if this holds water though.

[jyurasek02]

I am just finishing the book also, and trying to wrap my brain around all of the topics covered. What I think I get out of it is that interest rates will rise in the coming recession due to inflation (true inflation as he says, not CPI) and the potential pullout of overseas investors. I discussed this topic in my economics class at business school and one person stated the whole reason the gov is doing this is to sell off our debt for cheaper than what we borrowed at. In other words, driving the dollar down and forcing overseas investors to cash out, basically allows us to pay off the debt with weak dollars. Not sure if this holds water though.

[jyurasek02]

I am just finishing the book also, and trying to wrap my brain around all of the topics covered. What I think I get out of it is that interest rates will rise in the coming recession due to inflation (true inflation as he says, not CPI) and the potential pullout of overseas investors. I discussed this topic in my economics class at business school and one person stated the whole reason the gov is doing this is to sell off our debt for cheaper than what we borrowed at. In other words, driving the dollar down and forcing overseas investors to cash out, basically allows us to pay off the debt with weak dollars. Not sure if this holds water though.

[jyurasek02]

I am just finishing the book also, and trying to wrap my brain around all of the topics covered. What I think I get out of it is that interest rates will rise in the coming recession due to inflation (true inflation as he says, not CPI) and the potential pullout of overseas investors. I discussed this topic in my economics class at business school and one person stated the whole reason the gov is doing this is to sell off our debt for cheaper than what we borrowed at. In other words, driving the dollar down and forcing overseas investors to cash out, basically allows us to pay off the debt with weak dollars. Not sure if this holds water though.

[asragov]

Deflation will probably cause the value of the dollar to go up.

In an inflationary environment, because assets are going up in value, debt is good.

In a deflationary environment, debt will kill you as assets are worth less.

Depending on the scenario, taking out debt now to buy a non-productive asset (i.e. a house) is a great idea, or a terrible idea.

The folks at Minyanville yesterday touched on this (hint: they are looking for deflation, so they would say to save your pennies):

http://www.minyanville.com/articles/index/a/15238

[asragov]

Deflation will probably cause the value of the dollar to go up.

In an inflationary environment, because assets are going up in value, debt is good.

In a deflationary environment, debt will kill you as assets are worth less.

Depending on the scenario, taking out debt now to buy a non-productive asset (i.e. a house) is a great idea, or a terrible idea.

The folks at Minyanville yesterday touched on this (hint: they are looking for deflation, so they would say to save your pennies):

http://www.minyanville.com/articles/index/a/15238

[asragov]

Deflation will probably cause the value of the dollar to go up.

In an inflationary environment, because assets are going up in value, debt is good.

In a deflationary environment, debt will kill you as assets are worth less.

Depending on the scenario, taking out debt now to buy a non-productive asset (i.e. a house) is a great idea, or a terrible idea.

The folks at Minyanville yesterday touched on this (hint: they are looking for deflation, so they would say to save your pennies):

http://www.minyanville.com/articles/index/a/15238

[asragov]

Deflation will probably cause the value of the dollar to go up.

In an inflationary environment, because assets are going up in value, debt is good.

In a deflationary environment, debt will kill you as assets are worth less.

Depending on the scenario, taking out debt now to buy a non-productive asset (i.e. a house) is a great idea, or a terrible idea.

The folks at Minyanville yesterday touched on this (hint: they are looking for deflation, so they would say to save your pennies):

http://www.minyanville.com/articles/index/a/15238

[Author]

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