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  • From: bob ford <bobford79 AT yahoo.com>
  • To: Clansgian AT wmconnect.com, homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] Reinventing Collapse by Dmitry Orlov
  • Date: Sun, 9 Nov 2008 09:15:11 -0800 (PST)

Everything you said was correct of course, and I did point out that if a
person was "certain" of high or hyper-inflation. But still, with a couple of
bad twists of fate, such as say, a medical bill, a person could lose their
investment (and the equity in their house). So , you are right, I would not
advise anyone to boorow against their house or land or anything that could
put their house or land in jeapordy.

The only argument I have , at all, is that for some of us, paying cash and
living debt-free did not stop the economic losses. I know people who walked
away from numerous properties, and have plenty of money left. They bought ,
using OPM (banks, primarily); it didn't pan out, so their credit is wrecked
for a few years (until congress passes law that gives everyone "equal"
credit. some of us still have perfect and enviable credit, but have lost a
great deal of capital

But, debt free livingh has been a mantra for me for years, it is just hard to
be as enthsiastic, now .....bobford


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--- On Sun, 11/9/08, Clansgian AT wmconnect.com <Clansgian AT wmconnect.com> wrote:

> From: Clansgian AT wmconnect.com <Clansgian AT wmconnect.com>
> Subject: Re: [Homestead] Reinventing Collapse by Dmitry Orlov
> To: bobford79 AT yahoo.com, homestead AT lists.ibiblio.org
> Date: Sunday, November 9, 2008, 10:01 AM
> > >Actually, if you were really certain of high or
> hyper-inflation, the smart
> > move, now, would be to acquiore as musc debt as
> possible, now, and lock in
> > the present interest rates. If inflations only
> reacheas 25% (got there during
> > Carter), in less than 3 years , your monthly payments
> would be half , in
> > inflation-adjusted real money, what they would be at
> present.
>
> Bob, you know I'm on your side, and I know you post
> this above only as
> observation, not recommendation nor what you intend on
> doing.
>
> But let me say that this is the mother and father of all
> loser's philosophies.
>
> Following just such logic, I know many a person who had a
> mortgage at, say,
> 5% and then they had the means to pay most of it off. BUT
> at the time mutual
> funds were paying 9%. The math said to invest the money.
>
> The rhetorical question always asked was, 'If your
> house were paid for and
> free and clear, would you borrow money against it to play
> the stock market??"
>
> The answer was always a horrified "NO!".\
>
> But by investing in stocks and failing to pay your
> mortgage, you are doing
> the very same thing!
>
> Debt is always a bad idea if there is any other way under
> the sun to conduct
> your affairs. Always. As you watch time go by, those who
> avoid debt prosper,
> those who embrace it soon or late are consumed by it.
>
> James







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