Investing 102

[GregWeld]

I loved Art Cashen's statement this morning about INFLATION:

He says that banks have enormous balance sheets because they aren't lending... and if they aren't lending people and businesses aren't spending if people and businesses aren't spending then that's why we don't have any inflation!


When you think about your house going sky high a few years ago - it was why? Because the easy money let everybody buy a house -- and they went thru the roof price wise... there was no value there - it was just pure inflationary pressures.

Individuals REPAIR their own balance sheets by NOT spending, saving more, investing... growing their top line (income) and trimming expenses. While it might not "FEEL" as good as the paper gain of their house going up 100K a year.. in the long run it's far more healthy. Saving and investing is REAL cash -- paper is just that -- paper.