Re: investing reserve funds
From: Ann Zabaldo (
Date: Thu, 16 Aug 2018 05:06:44 -0700 (PDT)
Hi Brian—

From where are you getting your statistic about an 8% inflation rate?   The 
current inflation rate is 2.9%.   

I’m not an economist and I can barely add or  subtract but I remember the 
inflationary days of the early 80s. If the inflation rate was 8% we would see 
lending drying up and huge interest rates applied. The feds would be raising 
interest rates precipitously.  Our money market funds would be enjoying fat 

In the inflationary days of the early 80s people did buy all kinds of goods and 
services trying to beat the inflation rate which of course just kept the 
economy heated up.  I bought a house during that time that had a 9% mortgage 
interest rate. Lucky to get that. Some people were paying as much as 12%.

I don’t know anything about hedging a bet against inflation by buying now. I’d 
be interested in hearing from other folks more in the know than moi. 

By the way Brian… Where are you from? And do You have a Cohousing community 
with Which you are associated?

Ann Zabaldo
Takomavillage Cohousing
Washington DC
Sent from my iPhone
All tiipos ... curtesy of Siri  :-)

On Aug 16, 2018, at 1:01 AM, Brian Bartholomew via Cohousing-L <cohousing-l 
[at]> wrote:

>> Keep in mind, that if your money isn't earning interest somewhere,
>> you are actually losing money every year.
> I hear consumer price inflation is running 8%/year.  Does a roof wear
> out faster or slower than 8%/year?  Maybe you would be happier with a
> new roof now, than with a new roof in 15 years after 2/3 of the
> purchasing power of your reserve fund has been taken by inflation.
> Likewise for commercial kitchen appliances, heating and air, plumbing,
> paving, well drilling, solar power, or other durable goods which might
> wear out and lose value more slowly than the dollar.
> Brian
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