couple of things to worry about for renters

[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

[cr]

Why is this post titled “couple of things to worry about for renters”?

Even if the US dollar drops 50% to the peso the loans people have in dollars will still have to be paid back at their full amount. Unless they are earning wages in pesos, the devaluation of the $ will have little to no direct effect. The only threat to renters is if Mexican speculators come here and start snatching up cheap homes.

Given the amount of US driven manufacturing in Mexico, I’d bet any downturn in the US will directly hurt Mexico’s economy too.

[cr]

Why is this post titled “couple of things to worry about for renters”?

Even if the US dollar drops 50% to the peso the loans people have in dollars will still have to be paid back at their full amount. Unless they are earning wages in pesos, the devaluation of the $ will have little to no direct effect. The only threat to renters is if Mexican speculators come here and start snatching up cheap homes.

Given the amount of US driven manufacturing in Mexico, I’d bet any downturn in the US will directly hurt Mexico’s economy too.

[cr]

Why is this post titled “couple of things to worry about for renters”?

Even if the US dollar drops 50% to the peso the loans people have in dollars will still have to be paid back at their full amount. Unless they are earning wages in pesos, the devaluation of the $ will have little to no direct effect. The only threat to renters is if Mexican speculators come here and start snatching up cheap homes.

Given the amount of US driven manufacturing in Mexico, I’d bet any downturn in the US will directly hurt Mexico’s economy too.

[cr]

Why is this post titled “couple of things to worry about for renters”?

Even if the US dollar drops 50% to the peso the loans people have in dollars will still have to be paid back at their full amount. Unless they are earning wages in pesos, the devaluation of the $ will have little to no direct effect. The only threat to renters is if Mexican speculators come here and start snatching up cheap homes.

Given the amount of US driven manufacturing in Mexico, I’d bet any downturn in the US will directly hurt Mexico’s economy too.

[cr]

Why is this post titled “couple of things to worry about for renters”?

Even if the US dollar drops 50% to the peso the loans people have in dollars will still have to be paid back at their full amount. Unless they are earning wages in pesos, the devaluation of the $ will have little to no direct effect. The only threat to renters is if Mexican speculators come here and start snatching up cheap homes.

Given the amount of US driven manufacturing in Mexico, I’d bet any downturn in the US will directly hurt Mexico’s economy too.

[JWM in SD]

JWM in SD

Nice Try RDeNiro (hmmm, you sure you’re not someone else?), but those subjects have all been discussed already. Deflation and credit contraction is where we are headed. The hyperinflation has already happened in the form of debt or M3 and overvalued assets (RE).

200 imploded lenders, multiple frozen money market funds, and 3 FFR reductions all pretty much point in that direction.

[JWM in SD]

JWM in SD

Nice Try RDeNiro (hmmm, you sure you’re not someone else?), but those subjects have all been discussed already. Deflation and credit contraction is where we are headed. The hyperinflation has already happened in the form of debt or M3 and overvalued assets (RE).

200 imploded lenders, multiple frozen money market funds, and 3 FFR reductions all pretty much point in that direction.

[JWM in SD]

JWM in SD

Nice Try RDeNiro (hmmm, you sure you’re not someone else?), but those subjects have all been discussed already. Deflation and credit contraction is where we are headed. The hyperinflation has already happened in the form of debt or M3 and overvalued assets (RE).

200 imploded lenders, multiple frozen money market funds, and 3 FFR reductions all pretty much point in that direction.

[JWM in SD]

JWM in SD

Nice Try RDeNiro (hmmm, you sure you’re not someone else?), but those subjects have all been discussed already. Deflation and credit contraction is where we are headed. The hyperinflation has already happened in the form of debt or M3 and overvalued assets (RE).

200 imploded lenders, multiple frozen money market funds, and 3 FFR reductions all pretty much point in that direction.

[JWM in SD]

JWM in SD

Nice Try RDeNiro (hmmm, you sure you’re not someone else?), but those subjects have all been discussed already. Deflation and credit contraction is where we are headed. The hyperinflation has already happened in the form of debt or M3 and overvalued assets (RE).

200 imploded lenders, multiple frozen money market funds, and 3 FFR reductions all pretty much point in that direction.

[RDeNiro]

I keep hearing comments about deflation. Pardon my ignorance. The way I understand it, the more money printed the less value it has. Hence, cost of things and services increases. Why would there be deflation? Where is the money going???

[RDeNiro]

I keep hearing comments about deflation. Pardon my ignorance. The way I understand it, the more money printed the less value it has. Hence, cost of things and services increases. Why would there be deflation? Where is the money going???

[RDeNiro]

I keep hearing comments about deflation. Pardon my ignorance. The way I understand it, the more money printed the less value it has. Hence, cost of things and services increases. Why would there be deflation? Where is the money going???

[RDeNiro]

I keep hearing comments about deflation. Pardon my ignorance. The way I understand it, the more money printed the less value it has. Hence, cost of things and services increases. Why would there be deflation? Where is the money going???

[Author]

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