Homestead mailing list

[bob ford <bobford79 AT yahoo.com>]

I'm just saying it looks like we could have a short period of deflation, 
where, as you say, people with disposable cash, will be able to find very 
good deals.  

>From land, to turkeys, to tools, to beef, to cars, to grain and oil.  Across 
>the board asset deflation is , as far as I know, fairly rare, in modern 
>american history, .  We've seen it recently in real estate, but in a true 
>deflationary environment, all assets will be affected. 

The only benefit, as you conclude, is to use your disposable cash to buy 
assets that you will need in future, while price is down, now .  When I say 
"Cash is King"; I mean if used 'now', during this upcoming  period of 
delation ....bobford


--- On Fri, 10/10/08, Don Bowen <don.bowen AT earthlink.net> wrote:

> From: Don Bowen <don.bowen AT earthlink.net>
> Subject: RE: [Homestead] Dow could close below 8000
> To: bobford79 AT yahoo.com, homestead AT lists.ibiblio.org
> Date: Friday, October 10, 2008, 1:29 PM
> > All other commodities and other assets
> > lose value.   Cash is King. ...until inflation begins
> 
> Cash is not necessarily king.  $100 today will not have
> $100 purchasing
> power in the future.  Inflation is a constant, minimal at
> times but crazy at
> others.  But in the end cash is only good for the moment. 
> It allows
> purchases of today's gasoline and groceries.
> 
> Cash turned into something else is king.  Cash turned into
> land is one good
> example.  Cash turned into tools or knowledge and skills is
> another good
> thing to do.
> 
> People with more cash can turn it into more good things
> than people without.
> If you are broke until the next payday that turkey on sale
> for $.35 will do
> you no good at all.  The person with more cash can buy the
> turkey or stocks
> on sale much easier than someone without but in the end a
> stack of $100
> bills is not as good as a freezer full of turkey or
> investments in decent
> stocks.
> 
> Don Bowen  KI6DIU
> http://www.braingarage.com/Dons/Travels/journal/Journal.html