Inflationary Income
04/17/2015 | | Economic forecasting, Eisenberg and housing economics, Eisenberg and public speaking, Elliot eisenberg, Graphsandlaughs, Great public speaking economist, MLS, Multiple listing service, Public speaking economist, bow-tied economist, econ70, economist on TV, economist on radio, eisenberg and economics, entertaining economist, funniest economist, funny housing economist, graphsandlaughs and eisenberg, housing sales, mortgage banking, politics and economics, www.econ70.com
The Friday File: The Washington Nationals recently signed hurler Max Sherzer to a mind-blowing seven-year $210 million contract, payable over 14 years. Sherzer will receive $15 million/year. Beyond Sherzer’s performance, this is a bet on expected long-term inflation. If inflation averages 2% over the life of the contract, it’s worth $196.6 million. At 4% it’s $173.4 million. A fortune either way but a staggering difference of $23.2 million!