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This is what I remembered from Econ 101--inflation is good for debtors and bad for lenders because the real value of what you have to repay on a loan decreases, vice versa for deflation. I'm not sure why everyone is following the media into a fear of inflation when deflation would be far worse for anyone with house/car/card debt.

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I wasn't trying to say that anything is coming or not, just that homes losing 30% of their value would be bad for people even if you don't intend to sell immediately.

All the folks that are pretty much capped out on their debt with their new mortgages should be a great position going forward because they're locked in with their 2-3% mortgages and interest rates (and/or market returns) should surpass that.

Because wages don’t usually go up in lockstep with inflation so you have reduced spending power in the short term which a long term debt doesn’t help out with.

When the choice is pay for gas to get to work or feed the kids nobody cares they are benefiting on their 30 year mortgage because of inflation.

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