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Thanks. It is great to share
送交者: k19 2009月03月29日10:52:24 於 [股市財經] 發送悄悄話
回  答: K19,kcho1348 , A question鄉下來的小媳婦 於 2009-03-28 04:22:00
We all learning, and nobody really know what is comming.

IMO, before we get there we will have a peroid of deflation. Like where we are now. This give US an excuse to print even more money. Once things turn around the inflation will be impossible to stop. US can\'t simply raise the interest rate to stop the inflation because if they do they will have to print more money to pay the interest on their debt.
There are few problems for thinking that hyperinflation will have price for all the stock to go up . Price is not value. you can have it go up 100 times but it does not mean its value will go up equally. Manytimes it lose the value. For example, like aapl, msft. These company are cash rich if we have 500% inflation are these company worth more or less? hyperinflation will wipe out the wealth they generated in the past decades. I think it will simply wipe out the value of the stock people holds. If your stocks went up to 10Million a share. are you going to be rich? Think about 1 trillion zimbabewee dollar.
The hard assets will always win in situation like that. but you have to be very carefull which hard asset to own. Govt can tax you hard on those assets too. So all we can do is to keep read and learning.

Another problem to buy stocks and think inflation will get the price back, is that you don\'t know if the company will go to 0 or not. I believe many will. And the money can be used to invest in something might help you get through the touch times. During hyperinflation, money move around and never idle. the idled money is dead money. There is a hyperinflation handbook. Here is the link you can read it:

http://s3.amazonaws.com/iehi-img-mli/files/hyperinflation-book.pdfv

We don\'t have to be 10 years before everybody else. All w have to is 2 weeks before everybody else. Like someone said, Panic first, beat the rush.
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