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Pittsburg, Kansas | I see nothing wrong with those purchases if done with cash. What else is one going to do with the money? Bid up land prices?
If it is leveraged purchases, it probably still makes sense on some of the listed items as long as the leverage used was not tremendous. After all, our financial system punishes savers and rewards borrowers with artificially low interest rates. And with tax deductions, Uncle Sam pays part of the tab on the deductible of those purchases compared to savings. Productive assets of course are always a better choice.
Now if a person bought all those things highly leveraged............well the jury is still out on that one. If they can hold it together (and that could become difficult) till inflation eats away the purchasing power of the dollar so they can pay back the principal easier then it couldmstill end up being a good idea. But it is certainly rolling the dice and taking on a lot of risk.
Will not be the first time in history the wrong people are rewarded. Unless you can peer into the future, hard to say for sure how this all will turn out. But I suspect there will be a lot of twists and turns.
John
Edited by John Burns 2/12/2017 12:12
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Jim Rogers and his macro outlook
