In uk.finance Jane T wrote:
>> Debt-deflation is self-terminating and will restabilise at a different
>> value of assets and money. The same cannot be said for hyper-inflation,
>> which is where we'll end up if we print enough money to bail out all the
>> idiots out there.
> So if we do get hyper-inflation is this a bad thing for people with 100%
> mortgages or a bad thing for people such as yourself who rent.
Both.
> I have been following these events since 2001 and often read your comments
> and your previous views on the impending credit crunch, which is now upon
> us, made me (along with other reasons) take on more debt to move up the
> housing ladder in 2006. Only history will determine if this was the correct
> decision.
Can't argue with that.
FoFP
--
"Our entire banking system is a complete disaster. In my opinion, nearly
ever major bank would be insolvent if they marked their assets to market."
-- Head of hedge fund Lahde Capital, which made 1000% return betting
against subprime. Financial Times 26/11/07 |