On 2008-09-27 17:13:36 -0400, "Capt. JG" said:

"Jere Lull" wrote in message
news:2008092716442316807-jerelull@maccom...

Should the entire economy tank and we go into a depression, my
investments and house will have the same value relative to the price of
bread, about the only true measure.

Well, that might not be true... if you have money in stocks, say a
mutual fund, and we have a depression where the companies go out of
business, the stock will become worthless.

That portion of the mutual fund would become worthless, but a
broadly-based mutual fund will track what its based upon. I'm tending
towards index funds that "blindly" invest in every company in, for
instance, the Fortune 500. THAT could become worthless only if ALL
those companies went out of business. If that happens, we will have
worse things to worry about.

While it's true that your house will always retain some value, this
also depends on who actually owns the house.

Ours has been free and clear since '85, courtesy of my parents who
married in '35.

--
Jere Lull
Xan-à-Deux -- Tanzer 28 #4 out of Tolchester, MD
Xan's pages: http://web.mac.com/jerelull/iWeb/Xan/
Our BVI trips & tips: http://homepage.mac.com/jerelull/BVI/