Comments on: Why Low Interest Rates Are Bad For You

By: Living Off Dividends

Living Off Dividends — Tue, 13 Nov 2007 03:29:22 +0000

as the dollar devalues, everything becomes more expensive.
including real estate. As ron paul explained, the devaluing dollar causes inflation. In order to curb inflation, interest rates will eventually have to be increased. This will cause mortgage rates to go up. Many people who have adjustable loans will not be able to keep their homes.

But wealthy people usually buy real estate with fixed-rate loans. They won’t have a problem keeping their real estate. Eventually, once the inflation has come under control and the rates drop back down to historical levels properties will have risen substantially. But only the wealthy will have been able to profit from them.

Read mortgagesecrets.com for a much better explanation. The exact link was in the first line of the last paragraph of the post.

By: Hustle Strategy

Hustle Strategy — Mon, 12 Nov 2007 18:26:13 +0000

Great post. I might start tracking these ETF’s a bit more as well. So good looking in the comments as well.

By: some body

some body — Mon, 12 Nov 2007 14:19:58 +0000

“However, since its mostly wealthy people who own multiple properties that are leveraged with mortgages, as the value of the dollar drops and the value of real estate increases, they get to pay down their mortgage with cheaper dollars while simultaneously enjoying the appreciation in their properties.”

i am not good at economics. i didn’t watch the video (don’t know if this is relevant), but i did not understand the statement quoted. would you please explain?

here’s what i do understand…

- us interest rates lowered results in lower demand for the dollar in other countries
- because of supply and demand, the value of the dollar goes down

… but rich (or poor) folks living in the usa would still earn in us dollars, right? so how does it make it easier for the rich to use their cheaper dollars?

thank you.

- s.b.

By: Living Off Dividends

Living Off Dividends — Sun, 11 Nov 2007 23:16:15 +0000

Hi Thomas,

you’re quite right, investing in ETFs like FXA, FXC is easy.
the difficulty I was referring to was figuring out which currency to purchase that might be tricky. I guess I should’ve clarified that point.

mutual funds like MERKX maybe a good way to go too.

By: Thomas Shawn

Thomas Shawn — Sun, 11 Nov 2007 21:42:02 +0000

Actually investing in currencies is a breeze. See ticker symbols FXE, FXC, FXB, MERKX

Bernanke … what a deceptive ass … “as long as a dollar investor only buys good produced in dollars…” What a jackass.

This is a clear signal to anyone with a brains to send 100% of your investments overseas or to companies with huge %’s of their business done overseas.

The chairman was another jackass … “Ugh, we have a lot of anxiety up here” .. to laughter … these a-holes think this is a joke.