Inflation means the increase in the supply of fiat currency caused by the central bank printing (counterfeiting) currency to buy bonds, thus reducing the yield (effective interest rate) and increasing the bond price. Reducing interest rates reduces the Capitalization Rates
Anything of general interest.
There is a world of difference between the “fractional reserve system” (FRS) and the “central banking system” (CBS). FRS merely spreads out the money deposits in the form of loans, and the total sum of deposits plus debt never changes.
Housing prices will collapse with a nominal increase in interest rates. Get your financial calculator: N=360 (30 years), Rate=4% per year, PV=100,000, PMT=477.52, FV=0. Those are the numbers for a $100,000 mortgage debt at 4% per year, fully amortizing over
In early January 2013, I became very ill with Labyrinth-itus, which is a viral infection of the inner ear that affects balance. I was very disoriented and nauseous. A family member is a doctor in another state and she said
Most folks like to think that they are acting ethically and with integrity. The real test of whether you are ethically conducting your affairs is by looking from the other person’s point of view, as if what you are doing
I created this website to provide educational content and discussion regarding Wealth Creation through real estate investing. In these times, financial literacy is critical for creating and protecting your wealth. The topics will focus primarily on real estate investing and