[PLUG-TALK] What is money? (was Fair Use, etc.)
Russell Senior
seniorr at aracnet.com
Fri Mar 29 20:40:56 UTC 2002
>>>>> "J" == J A Henshaw <jhenshaw at dsl-only.net> writes:
J> Well, let's examine that angle.. Many mortgages have a clause
J> wherein it can be called if the loan goes upside down.
You are, once again, confused. A loan goes upside-down when you owe
more on the mortgage than the property is worth. This is exactly the
opposite situation. I've promised to pay back a finite, unadjustable
amount of currency on a set schedule. If the house becomes worth
_more_ in that currency, then that is _my_ money, not the banks. Even
adjustable-rate mortgages have caps on the amount that the interest
can increase (something like 6% in most cases), say from 7% to a
maximum of %13 percent. If inflation suddenly starts running 100% a
month, you are in _fat_ city.
J> If runaway inflation artificially raised the sale price of your
J> home, and they called your note; could you pay it off at the newly
J> inflated price?
Runaway inflation wouldn't "artificially" raise the sale price of my
home. There would be nothing "artificial" about it. It would have a
"new" value in that moment's housing market.
--
Russell Senior ``The two chiefs turned to each other.
seniorr at aracnet.com Bellison uncorked a flood of horrible
profanity, which, translated meant, `This is
extremely unusual.' ''
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