@Komnene @kaia
The question in the subtitle is stupid on so many levels 🤦
Like yeah, when your money is losing value and you can't save, that's a very reasonable thing to do — convert that money, which is losing value, into something that might be losing its value less. And as most people can't really "diversify their investments", that's what they do — they start buying things.
Can't believe that this is The Atlantic 😩
@finlaydag33k
Often true and yet, it's something they can use — unlike money in a bank that they can spend on less things. They get a new car not with intent of selling it for more, but because in a year they might not be able to afford a better car and often even the same one — so why wait?
The question wasn't whether it's the optimal investment strategy, but why they do this — that's why. Inflation makes people give up their long-term plans 🤷
@Komnene @kaia
@finlaydag33k
BTW as a Russian — I've seen a couple of cases when even getting a loan and spending it on total shit like shiny new computer or phone wasn't such a bad idea, because it was literally about never seeing interest rates like that ever again 😂
But I don't think that Americans will ever experience something like that in their life.
Here people buy foreign currencies like US Dollars or Euros when they foresee high inflation risks — basically it's the same as buying TVs.
@Komnene @kaia
