That is not even close to true. Borrowers are better off if inflation is greater then the interest rate on the loan - otherwise they lose. Same applies to incomes: if your income rises more than inflation then you are ahead and vice versa. Simple mathematics really.
-----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Michael Madigan Sent: Tuesday, 2 December 2008 8:36 AM To: ProFox Email List Subject: Re: [OT] How to determine if a market has hit THE bottom. Most incomes go up quicker in inflationary times. It is generally recognized that borrowers gain value in inflationary times and lenders lose value. ************************************************* Barack Obama is not My President http://www.cafepress.com/rightwingmike --- On Mon, 12/1/08, Ricardo Aráoz <[EMAIL PROTECTED]> wrote: > From: Ricardo Aráoz <[EMAIL PROTECTED]> > Subject: Re: [OT] How to determine if a market has hit THE bottom. > To: "ProFox Email List" <[email protected]> > Date: Monday, December 1, 2008, 5:53 PM > Kristyne McDaniel wrote: > > Nicholas, > > > > > >> Ricardo, you need to understand the concept of > money. > >> It is irrelevant whether the rich have their worth > in > >> cash or other instruments. It is still > "money" and is > >> directly affected by inflation; everything they > buy > >> including other investment instruments will go up > >> in price. > >> > > > > Another feature of inflation is that all of us with > mortgages or other loans > > wind up repaying them in inflated dollars. That fact > does even out some of > > the impact of inflation on both the rich and the poor, > although the poor > > obviously are more severely impacted because of the > rise in rent, food, and > > other goods. > > > > Unless your loans are somehow tied to inflation. Right? In > which case > you will loose big. Because your income will not be tied to > inflation. > > > > > --- StripMime Report -- processed MIME parts --- > multipart/alternative > text/plain (text body -- kept) > text/html > --- > > _______________________________________________ > Post Messages to: [email protected] > Subscription Maintenance: > http://leafe.com/mailman/listinfo/profox > OT-free version of this list: > http://leafe.com/mailman/listinfo/profoxtech > Searchable Archive: http://leafe.com/archives/search/profox > This message: > http://leafe.com/archives/byMID/profox/[EMAIL PROTECTED] > ** All postings, unless explicitly stated otherwise, are > the opinions of the author, and do not constitute legal or > medical advice. This statement is added to the messages for > those lawyers who are too stupid to see the obvious. [excessive quoting removed by server] _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[EMAIL PROTECTED] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
