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Cash is being decimated by asset inflation before our very eyes.
by rorykoehler 5y ago
Cash is being decimated by asset inflation before our very eyes.
- jokethrowaway 5y agoIt depends what assets you want to spend your cash on. Will home prices go up after this crisis? Will there be demand once small companies start firing people and close down and we run out of government incentives? Sure, big companies have more money, but that is likely to be hoarded or invested (and I doubt it will be in real estate, given it's a hassle to manage) - it won't go back in the economy.
- rorykoehler 5y agoIt went into real estate the last time around so why not again?
- ChrisLomont 5y ago>Cash is being decimated by asset inflation before our very eyes. Not really - 10% change in 5 years is expected. https://fred.stlouisfed.org/series/CPILFESL https://fred.stlouisfed.org/series/CPILFESL
- rorykoehler 5y agoI'm not sure what relevance that has to my assertion? If a/the market goes up 50% you'd be poorly advised to hold cash rather than put it in the market.
- ChrisLomont 5y agoNo one should ever hold cash long term as an investment, but the graph shows pretty clearly there is nothing at the moment that has not been the trend for literally 50+ years. Calling that "Cash is being decimated by asset inflation before our very eyes" seems to be undue hysteria.