4 ms·
> Inflation is also good for those that own assets as their relative value to dollar increases. That's not "good", it's just less bad, because as soon as they
by mixedCase 4y ago
> Inflation is also good for those that own assets as their relative value to dollar increases.
That's not "good", it's just less bad, because as soon as they want to turn those assets liquid they run into the same problem. Their assets are not gaining value, they're just not losing it.
- fragsworth 4y agoPhysical assets generally lose "real" value on their own too, because they degrade or need maintenance. The asset prices might go up but if you sell them to buy other stuff, that other stuff also went up in price (probably higher). However, high enough inflation does benefit people who borrowed tons of money to hoard more physical assets than they can afford.
- htss2013 4y ago"high enough inflation does benefit people who borrowed tons of money to hoard more physical assets than they can afford" If their salary keeps up with inflation yes. The trouble with relying on RSUs for comp is that when the fed raises rates to fight inflation, it ensures your total comp doesn't keep up with inflation.