>> Nicholas Geti wrote: >> >>>>> And over that same period prices of houses rose astronomically. >>>>> >>>>> >>>>> >>>> Ok. So here's my advice for you two lads. Borrow as much money as you >>>> can at whatever interest rate you are asked. If the interest rate is >>>> tied to inflation or to nominal rate then THAT'S better than static >>>> interest. Go ahead! The world will be yours! >>>> >>>> >>>> >>>> >>> You are doing the same thing as Geoff. Adding assumptions to the >>> borrowing >>> model that started this discussion. I have never seen an interest rate >>> for >>> borrowing tied to inflation. They are always fixed rates. >>> >>> >> Yup, tell that to the poor people that lost their homes to rising >> interest rates! >> >> >> >> > You are still going off the original topic. We were talking about loans at > fixed interest rates; not whether borrowers had the skill to evaluate > risk. > Obviously they were either stupid or lied to and believed the lie. When I > got my fixed rate mortgage, most banks refused to lend the money even with > the income from my wife. They were tough 40 years ago. > I don't give a rat's ass for your prehistoric stories about how you bought your house 40 years ago. We are talking of what's going on right now, and the credits that provoked the present situation were taken at most 4 years ago I guess.
Ricardo, Again you have missed my point. I was trying to show what inflation has done to the price of houses over the past 40 years. It closely parallels the chart that Pete put up last time. It demonstrates that one must invest as much money as one can and as early as one can into the types of property that grow in step with inflation. _______________________________________________ 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.
