A Position on the Economy for 2008

[Flipx99 5,000+ posts]

So inflation is good. I mean, everyone likes raises right? As I become better and more effecient at my postition, I make more money for my company and they reward me with increased pay. That pay has to come from somewhere...Plus so many interest rate hedge consider inflation to make the math work.

1-3% inflation is okay....It comes with increases in the money supply.

 

[AllStar1500bd 5,000+ posts]

Everything in moderation.

 

[miker 5,000+ posts]

Haha.. Inflation.. Germany comes to mind.. lol

Anyway, I am just wondering if you are including mortgages in debt???

 

[Flipx99 5,000+ posts]

Haha.. Inflation.. Germany comes to mind.. lol
Anyway, I am just wondering if you are including mortgages in debt???

No. I was just meaning consumer debt...ie credit cards, small loans, stuff like that....things purchased on wants rather than needs. It wouldn't hurt to pay more than the stated amount each month to increase the equity in your home, but that is something I am becoming cautious about.

When I pay two or three times my truck payment, I may only save $2-300 in interest. If I kept it liquid, I might be better able to tak advantage of some investments that I cannot take advantage of now. That is what I am trying to get at...it might be a time do alter your financial strategy so you can "pounce" on opportunities quickly rather than having your money tied up.

 

[miker 5,000+ posts]

No. I was just meaning consumer debt...ie credit cards, small loans, stuff like that....things purchased on wants rather than needs. It wouldn't hurt to pay more than the stated amount each month to increase the equity in your home, but that is something I am becoming cautious about.
When I pay two or three times my truck payment, I may only save $2-300 in interest. If I kept it liquid, I might be better able to tak advantage of some investments that I cannot take advantage of now. That is what I am trying to get at...it might be a time do alter your financial strategy so you can "pounce" on opportunities quickly rather than having your money tied up.

Ok, I see..

Kinda ***** for us... We are just getting ready to sell our house this spring, but seems like selling it may be hard to accomplish...

 

[Flipx99 5,000+ posts]

I would not. That is the time I am going to buy. //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif

However, real estate is a local market kind of thing. Middle TN is way way overbuilt. So I am waiting to a few builders go bellyup before I do much of anything.