Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: expat_panama

“The belief that money made tomorrow will be worth less than money today stymies investment;”

That sounds backwards to me. It’s during inflation that tomorrow’s money is worth less than today’s. Other than that the article looks good.


36 posted on 10/23/2014 5:49:38 PM PDT by Pelham ("This is how they do it in Mexico"- California State Motto)
[ Post Reply | Private Reply | To 1 | View Replies ]


To: Pelham
sounds backwards to me.

Welcome to the business world.  Don't worry, things don't have to make sense to be the way they are, they rarely ask permission.  It's like bond values.  Many people don't understand why bond values fall when interest rates go up.  Sometimes I try to explain it to 'em but that's when I find out that their minds are made up and they really don't care about how things really are.

fwiw, what I got was that "money made tomorrow will be worth less than money today" refers to the fact that during deflation we know that less money is going to be made tomorrow off of today's bigger investment.   Folks didn't want to buy stocks during the '30's, so corps were forced to pay a dividend yield upwards of ten percent!

40 posted on 10/23/2014 6:43:38 PM PDT by expat_panama
[ Post Reply | Private Reply | To 36 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson