Finally, no bid on mortgage-backed securities

Re:Finally, no bid on mortgage-backed securities by carom on Monday June 13, 2022 @04:32AM (#31722757)

Your debt is losing value at the rate of inflation, and you are paying less than the rate of inflation for that debt. If I'm paying 2.9% on -800k and that -800k is inflated away at 8.6% then I'm making 5.7%.

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Re:Finally, no bid on mortgage-backed securities by chasd00 on Monday June 13, 2022 @08:58AM (#31724889)

But isn’t this assuming your pay increases at the rate of inflation? If your pay doesn’t increase then you don’t get any benefit of high inflation against your debt.

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Re:Finally, no bid on mortgage-backed securities by carom on Monday June 13, 2022 @11:29AM (#31726952)

Or the asset you bought with that debt, as real estate has normally kept pace with inflation. Or stocks. Both might see temporary shocks though.

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