http://www.dailyreckoning.com/Issues/2006/DRUS082106.html
Funny how this article adresses exactly the same point that I made yesterday.
Logically the threat of inflation should encourage us to borrow more. But as this article mentions, there might be a housing bubble bursting in the mean time.
If you borrow against a declining asset, it will hurt anyway, and the real interest rate will keep on going down anyway, so it will be better to wait.
Funny how this article adresses exactly the same point that I made yesterday.
Logically the threat of inflation should encourage us to borrow more. But as this article mentions, there might be a housing bubble bursting in the mean time.
If you borrow against a declining asset, it will hurt anyway, and the real interest rate will keep on going down anyway, so it will be better to wait.