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The parent seems to be implying that fed policy will continue to drive down the value of the dollar. In this scenario savers get crushed as inflation whittles
by danhak 6y ago
The parent seems to be implying that fed policy will continue to drive down the value of the dollar.
In this scenario savers get crushed as inflation whittles away the value of cash while asset prices climb. And the “folks with little savings and expensive mortgages” that you allude to actually come out on top.
- pengaru 6y ago> the “folks with little savings and expensive mortgages” that you allude to actually come out on top. What good is an expensive mortgage when you can't pay it, lose your home, and now have bad credit preventing you from capitalizing on all the new opportunities created by all the foreclosures and vacant rentals? The savers have options. At any given moment a saver can decide to buy a pile of stock, or go get a mortgage. Why would we sit idly by while inflation gets so bad it no longer makes sense to hold cash? It doesn't happen overnight, there will be plenty of interesting opportunities in the mean time available to those with good credit and/or a pile of cash.