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To: Big_Monkey

So, what you’re saying is, the cost of goods goes up, but the companies that make the goods don’t make any more money, they in fact lose money?

Inflation inflates not just goods and services, but the providers. Real Estate and Stocks must “inflate” too right?

I find it frustrating that people are to have their opinion both ways. On one hand they say stocks are down, and going lower. Then they say inflation is a problem, they’re printing money.

Hello Money, meet Mr. Asset.....

Trust me, it’s coming. Like a gallon of gas on an ember.

Inflation is going to be the problem, yes indeedy, but not quite yet. It will strike in the middle of night, just when everyone makes a really cute song about how Obama saved the world...

So, I’m basically telling you, that we have a 3 part game ahead over the next 6 yrs. A smart guy could make a buck or two. Especially next time.


39 posted on 03/19/2009 10:13:48 PM PDT by Professional
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To: Professional
"Inflation inflates not just goods and services, but the providers. Real Estate and Stocks must “inflate” too right?"

Not at all. Real Estate is only worth what someone will pay for it. If there's no demand for Real Estate, prices will fall even in a time of great INFLATION - Let me ask you, how much do you think a condo in Zimbabwe is worth today?

Second, stocks will absolutely fall during times of high inflation - check out the stock prices for companies between 1929 to 1939 - not pretty although inflation was substantial.

But, you're right about inflation not coming - just yet. But, I temper that with one caveat. We truly are in times like no other. Historical precedent could be worthless. Historical precedent says inflation should come later, then again, it could come much more quickly if the historical models are worthless.

41 posted on 03/19/2009 10:21:13 PM PDT by Big_Monkey
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