FA+
Shop
Everything will get better they say!
a year ago
General
How do you guys think things are going to get better if we lose every year over 5% of value? Within 10 years, you have lost 50% of your savings. How this way anyone will be able to afford a house?
Karo Zagorus
~karozagorus
OP
Inflation is cumulative.
Karo Zagorus
~karozagorus
OP
You don't get value back after you lose it, therefore inflation can not be compounded in any way.
I could then argue that the value is losing more then just 5% at yearly inflation rate because the overall value loss is greater therefore the 50% is just assuming you have lost that value while you still have 500k in your bank account at the same value, because you don't actually lose money, it's always the same amount you are losing if you have saved money. You don't suddenly have less then 500k if you are losing value from the same amount.
Roukan
~roukan
Many of us already cannot afford a house.
PlumYote
~lickyluckylatrans
We may have to look towards history to see how others have escaped the mess. It seems like some kind of hard collapse may eventually come which will reset the playing field. Maybe not The Great Depression or the Collapse of the Soviet Union, but something similarly harrowing.
Karo Zagorus
~karozagorus
OP
I suspect the same, a change of system.
Drayk
~drayk
Things just keep getting more and more wild as the years go on by !
Karo Zagorus
~karozagorus
OP
Must be really wild never being able to own your own house or have to reach constantly for lines of credit.
