I don’t think he’s ignoring the destruction of credit, debt, and wealth.
If the prices of homes were to hyper-inflate, so would every other aspect of life. You couldn’t make a killing on it in the way you suggest.
Deflation is where we’re at. Inflation will come later. That’s my take.
Hyper-inflation would mean that your home goes up in price, making it easy to pay off your debt.
That’s not going to happen. Hyper-inflation a pipe-dream of Baby Boomers who have a no-money-down mortgage, a 2nd mortgage, a HELOC, a furniture loan, club dues, maxed out credit cards, and monthly alimony to pay.
1,200% inflation means that your home suddenly (in 1 year!) becomes worth 12 times more than today. That easily pays off all of the debt that the ATM-Home-Generation has been living high on.
Won’t happen.
Hyper-inflation will not happen. The credit kiddies are not going to be bailed out by hyper-inflation. That’s a pipe-dream.
Deflation is where we’re at. Inflation will come later. That’s my take.”
I pretty much agree. Deflation is occuring with SOME things, like housing, some autos. In other cases, some commodities are increasing in cost. Ammo and fuel are good examples.
But the inflation will come later as production decreases and commodities become scarcer.