By :RE: Debt isn't the hedge, it's possessing an asset that may arpepciate at the rate of inflation that's the hedge. (as to whether housing does arpepciate at the rate of inflation, that's another question entirely)Both are a hedge, because you're paying back the debt with dollars which are worth less. If you had $150k of cash and $150k of debt, you wouldn't care about inflation of deflation. If you had $150k of cash, $150k of debt and $150k of real estate, you would care. Rate this comment: 0 0

by Elena 08:36:06 PM 2013.01.26