Larry Caldwell
Elite Member
The way inflation is running, your 2.75% mortgage is paying you to borrow. My parents bought a farm with a 5% GI Bill mortgage in 1961, and went all-in on what they could afford. They were in no hurry to pay it off. By the late '80s the mortgage payment was petty cash.
When I tell young people the dollar has lost 90% of its value in my lifetime, I get blank looks. I didn't understand why inflation has been so low since 2009, but knew the Fed's free money policy would come back to bite us. Everything but the CPI was going nuts, and now the CPI is catching up with the last 12 years.
The adoption of a just-in-time supply chain is vulnerable to disruption by almost anything. Energy shortage. War. Banking failures. Political posturing. I wouldn't be surprised to encounter random shortages on top of shipping difficulty. On the up side, just 5% inflation for 10 years will cut your mortgage payment in half. That won't matter much to the people living on the streets.
When I tell young people the dollar has lost 90% of its value in my lifetime, I get blank looks. I didn't understand why inflation has been so low since 2009, but knew the Fed's free money policy would come back to bite us. Everything but the CPI was going nuts, and now the CPI is catching up with the last 12 years.
The adoption of a just-in-time supply chain is vulnerable to disruption by almost anything. Energy shortage. War. Banking failures. Political posturing. I wouldn't be surprised to encounter random shortages on top of shipping difficulty. On the up side, just 5% inflation for 10 years will cut your mortgage payment in half. That won't matter much to the people living on the streets.