The Motley Fool Discussion Boards
Investing/Strategies / Bonds & Fixed Income Investments
|Subject: Re: Longreits, RE: Inflation||Date: 12/7/2009 1:14 PM|
|Author: andpatt||Number: 29366 of 35992|
The textbook –and correct- answer is that debtors benefit from inflation, and that creditors get hurt.
The “have’s” --by definition—- benefit from inflation. The have-not’s, have not, because they are its victims.
How does the layman explain aparent contradiction?
If both of these statements are true (of which im not completely convinced), the have nots cannot become haves by lending capital to haves. The have nots must allocate some of thier capital to equity in order to explicity become haves and thereby take advantage of this inherent relationship.
|Copyright 1996-2017 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|