How to invest in inflation?

[Perry]

I believe that the bailout package essentially deflect the pain of the market to the dollar itself. In other words I believe the market is very possibly nearing a bottom but that inflation will soon begin to quickly rise.

What are some ways for the average person to capitalize on inflation?

 

[theoakman]

gold and silver

if the fed is going into hyperinflation, lock down some fixed rate loan like a 30 year mortgage. You'll be paying it off with monopoly money.

 

[RSLudlum]

gold and silver

if the fed is going into hyperinflation, lock down some fixed rate loan like a 30 year mortgage. You'll be paying it off with monopoly money.

I'm good to go, if I can stay employed

 

[TheEvilDetector]

gold and silver

if the fed is going into hyperinflation, lock down some fixed rate loan like a 30 year mortgage. You'll be paying it off with monopoly money.

lol

 

[Josh_LA]

gold and silver

if the fed is going into hyperinflation, lock down some fixed rate loan like a 30 year mortgage. You'll be paying it off with monopoly money.

hello? that's exactly why a lot of people are in foreclosure today!

They think they got a good deal (and they did) but they salary can't sustain.

 

[Josh_LA]

What are some ways for the average person to capitalize on inflation?

Buy paper, one day paper will be worth more than FRNs because it's the same thing, only FRNs cant be reused to scribble on.

 

[tmosley]

hello? that's exactly why a lot of people are in foreclosure today!

They think they got a good deal (and they did) but they salary can't sustain.

No, for the most part, their rates reset. A 30 year fixed is a good deal. It's pretty rare for a salary to go down. They usually stay about the same or go up. If hyperinflation kicks in, he might be able to pay off his mortgage for the cost of a newspaper (like you can in Zimbabwe).

 

[OddballAZ]

hello? that's exactly why a lot of people are in foreclosure today!

They think they got a good deal (and they did) but they salary can't sustain.

Not with a 30 year fixed at a decent rate and a a good paying steady income. The people who got into trouble have ADJUSTABLE rate loans, where they were fixed for 2 or 5 years, then the rate went to whatever the current interest rate is. Once their rate went to the current higher rate they got screwed.

If we have hyperinflation then anyone who stays employed and has a 30 year fixed mortgage will pay their house off pretty quick.

 

[Josh_LA]

No, for the most part, their rates reset. A 30 year fixed is a good deal. It's pretty rare for a salary to go down. They usually stay about the same or go up. If hyperinflation kicks in, he might be able to pay off his mortgage for the cost of a newspaper (like you can in Zimbabwe).

yes, but that's part of the problem, cost of living went up, so his bills and salary caught on (in the two worst ways), so even his best deal can't be paid off as food and other stupid things are of higher priority to some.

 

[Josh_LA]

If we have hyperinflation then anyone who stays employed and has a 30 year fixed mortgage will pay their house off pretty quick.

Yes, IF he stays employed, can you name a problem we'd have IF we all stayed employed? I'm not saying it's not their own fault they're unemployed, or we should sympathize with them, I'm just saying, that that's exactly the problem. Inflation can go up all it wants, as long as you're employed, how diversified investment won't ever go anywhere.