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A comment on Happy 400th birthday to the world's oldest bond. Parent comment

Re:Happy 400th birthday to the world's oldest bond by chgs on Tuesday December 24, 2024 @12:10PM (#42503200)
You make $3, rent costs $1, you owe $300, it takes 150 to repay your debt

Inflation doubles everything

You make $6, rent costs $2, you owe $300, it takes 75 to repay debt

The person so wealthy they lent you money loses out, you gain.

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Re:Happy 400th birthday to the world's oldest bond by caseysoftware on Tuesday December 24, 2024 @01:06PM (#42503638)
If that's universally true, why would lenders lend in a high inflationary environment?
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Re:Happy 400th birthday to the world's oldest bond by UniverseHacker on Tuesday December 24, 2024 @03:41PM (#42504750)
The interest is usually still more than inflation, they just make less money- and the alternatives for them are either cash, which loses more, or investments that are higher risk and more volatile.
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Re:Happy 400th birthday to the world's oldest bond by chgs on Thursday December 26, 2024 @09:01AM (#42515189)
Because they lose more if they just stick it in a box under the bed.
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