EBAY 1986 Model 2

[memphiskat]

This is the part I don't really understand...
If the dollar is tanking, and inflation a real possibility, then converting items into cash is buying into a devaluation of assets, right?

So, in order to hedge against devalued currency, I stock up on items before my cash becomes useless. In other words, clear any debt, and collect fixed
items that don't deteriorate over time. Like, guitars, gold, and other such nonsense.

Right?

First, nice score! Second, wouldn't debt dissolve in the face of rapid inflation?

[Cygnus X1]

First, nice score! Second, wouldn't debt dissolve in the face of rapid inflation?

Nice Guitar!

Mmmm, that's a theory I'm not willing to test.
On the surface it is true, but debt is more dangerous in troubled waters.

[memphiskat]

Nice Guitar!

Mmmm, that's a theory I'm not willing to test.
On the surface it is true, but debt is more dangerous in troubled waters.

Ok, this is really off track but think about it. Over the last ten years or so many loans where written to questionable borrowers. These were loans that gave the borrower a teaser rate on a home they really couldn't afford. At least not at the "real" interest rate. The party that wrote the loan got paid off the top. Then it was sold. Then the new holder sold it again and got more off the top. Then..... when the music stopped and the bottom dropped, only the last one without a chair to sit on got caught "holding the bag". Now the Fed comes in with a buyout to save that "poor bank". So everyone along the chain got paid (and I'm talking a life's time worth of salary in 10+/- years) and the one who got "caught holding the bag" gets bailed out. But did the guy who got talked into the original loan get saved? Are they gonna come and say, "sorry Joe, We'll lock you in at 3% so you can continue to live in your home"........not, they're gonna forclose and sell it again and write a new loan at the new higher rate. Oh wait, now they're gonna give you $600 each to spur the economy..........that will help you make a payment, won't it, won't it help you.........

Ok, so I went off a bit :-) But debt in rapid inflation should be a win......

Someone stop me!