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To: AdamSelene235
"No, expansion of credit plus false incentives for home indebtedness (not ownership) inflates home prices. This ultimately leads to dollar declines, but as I have said many times, inflation is neither instantaneous or homogeneous."

Inflation need be neither instaneous nor homgenous; your home value is still going to increase at or above that rate of inflation.

Inflation, by definition, means that assets cost more. That applies to your biggest asset, your house, as well.

Nor is home ownership "home indebtedness." Unless you paid too much originally...and even then it is merely a matter of time before your appreciating asset overtakes your depreciating debt.

Remember: inflation reduces your debt, too.

25 posted on 02/02/2005 12:21:59 PM PST by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: Southack
Inflation, by definition, means that assets cost more. That applies to your biggest asset, your house, as well.

No, inflation is an increase in the money supply. The nonlinear effect on prices depends on the past history of the system.

37 posted on 02/02/2005 12:57:05 PM PST by AdamSelene235 (Truth has become so rare and precious she is always attended to by a bodyguard of lies.)
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