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It could be an inflation hedge. You buy a house at a fixed rate, you pay your $5K/mo mortgage for 30 years. Meanwhile inflation makes this $5K less and less in
by bufferoverflow 4y ago
It could be an inflation hedge. You buy a house at a fixed rate, you pay your $5K/mo mortgage for 30 years. Meanwhile inflation makes this $5K less and less in real value. But you can rent it out for more and more.
- pascalxus 4y agoin other words, shorting the dollar. it's the same reason you buy just about any asset that's not bonds or cash AKA real assets. People know, it's only a matter of time before the feds default on the value of the dollar.
- bufferoverflow 4y agoNo, they just slowly devalue it. Though not so slowly in the last couple of years. Default is different, it's an inability to pay debts. They have no problem printing more dollars and paying debts.
- pascalxus 4y agoi mean by having inflation run hot at 5-10% for many years or decades, they're defaulting on their obligation to provide a stable value currency for the people.
- bufferoverflow 4y agoThere's no such obligation. USD purchasing power has been dropping pretty steadily.