QED

Inflation vs. Deflation: Pick Your Poison

Whether there are 4 or 204 gold coins, why would they even use them? They could just barter directly with each other or "share". No money or gold coins needed. The coins would not really have any value in the absence of other needed supplies/goods.

Apart from that a nice analysis IF they were to use the unpractical means of "money".

Buying Dow for a Better Deal than Warren Buffett Got

Re Ronjsq and Truthinvesting

It would be good if comments and/or suggestions were kept relevant to the article of the author only. That way we would not have to read lots of unsolicited and often irrelevant comment. If we want general investment advice we can always subscribe for a newsletter.

Misinformation From Fannie and Freddie On Walking Away

People be careful! It seems to me that Michael has misread the text he quotes relating to tax relief and Migala/Fannie Mae may well be right. If you read the IRS comment in the link to the Mortgage Forgiveness Debt Relief Act then it seems that "forgiven" does not include walking away where recourse is possible and has not been "forgiven or cancelled". Further, any tax relief, if the debt was indeed forgiven or cancelled, applies only in limited circumstances. The IRS link states the following:

"Does the Mortgage Forgiveness Debt Relief Act of 2007 apply to all forgiven or cancelled debts?

No, the Act applies only to forgiven or cancelled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes.

What about refinanced homes?

Debt used to refinance your home qualifies for this exclusion, but only up to the extent that the principal balance of the old mortgage, immediately before the refinancing, would have qualified.

Does this provision apply for the 2007 tax year only?
It applies to qualified debt forgiven in 2007, 2008 or 2009."

Walking away may thererefore not only taint your credit rating and affect your future chances on a mortgage. There may also be a further income tax sting in the tail if you walk away when there is recourse for the (remaining) debt and the lender has not agreed to cancel it. For refinanced debt (before 2007) you have to be even more careful. See your tax adviser and lawyer before making things worse.