Quote:
Originally Posted by red-beard
If inflation is a serious risk, you want fixed interest rate debt.
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If you really believe inflation is going to go sky-high, I'd say not only that, but buy as much as you can on that fixed-rate debt right now.
One of my primary motivations for buying a house right now. If things move the way I think they will and I end up able to pay the place off with dollars worth $0.20 of what they are today, I'll end up looking pretty smart.
Of course if it doesn't and we end up in a Japan-style era of stagflation with high unemployment, low rates and flat (or negative) growth I'll end up looking pretty dumb. But it's worth the risk methinks.