But then you have to say "with inflation, that will mean $12,000 in nominal dollars when I retire".

The real fear is deflation, which is significantly worse than inflation.

David,The other odd thing about the letters I received is that they didn't cut the limit on my credit line, they just suspended the check writing privileges.

Also, if you live on the coast, odds are it is not worth your time to fly to the Midwest and pick up a hammer.

It might be MORE than you are getting back in saved taxes today.Couple that with the spike in inflation we are going to see later this year lasting well into 2011 and you are really losing money.I look forward to all the comments from our community.

Historically real estate has just matched inflation.

All other comps are banks buying property back at auction.The extra square footage based on converted garage, I think, inflate the value of the property which makes me nervous about doing the deal.What does everyone think?

When inflation is high, like the late 70's early 80's, debt is good.

Cost inflation is 3.5% per year2.

I read an article yesterday where Charles Schwab said inflation and hyperinflation are OK because we have proven tools in the U.S to combat those.I am curious about those tools.