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-Me quote: "That's hilarious. Florida??"-

I had a somewhat disturbing dream last night involving tanning (although how my brain convinced me I would ever submit to a tanning bed is BEYOND me) and subsequent skin cancer.

With the housing market slumped as it is, I sometimes wish that I could purchase a house now, but, you know, come up with the money for it later. I suppose that's the sort of situation that would encourage people to take out loans -- how you always learn in economics that inflation actually helps reduce the national debt. It works because when you buy something now (say with a loan -- or in the government's case, a bond) perhaps you pay $5 for it. Inflation takes its course and the object you paid $5 for increases to a price of $6. If you pay less than $1 in interest on the loan, you come out ahead, having bought something now worth $6 for less. This is of course unlikely to happen, since banks have to make money too, but if there is a sudden spike in inflation, it is weirdly possible to benefit.

However, when the market performs as predicted, you merely get saddled with debt and a worse credit rating.

Reality check. Which would be a slight downside.