Posted: 2/13/2014 2:13:06 PM EDT
| Ok theoretically speaking, say this country has Zimbabwe or Weinmar style hyper inflation. Say we have 100 Trillion dollar notes. Would I be able to pay off my $250K home loan with one of those? |
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Good question, I always wondered if my mortgage was somehow tied to inflation. I think more likely in that emergency scenario, there would be some provisions (created by the government) for banks to "adjust" and basically fuck you. But at that point we're getting into FO time. |
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I think there would be a window, but I wouldn't trust it. Currency would be likely be replaced, banks would probably get a valuation reset deal in the process, ie if you had 50% equity before, you would have 50% equity under the new currency. Something like that. You'd need to get it paid off before any fixes got implemented. Posted Via AR15.Com Mobile |
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Please let me know when this happens.
I heard under the Carter administration, inflation drove interest rates on T bills to 20% returns on 10 year bonds. Some folks were lucky enough to jump on that. I'm torn with jumping on such an opportunity even if it would be painful all around. |
