[jjsheridan5]

You are right. But one thing to add: there will also be tremendous scarcity of some things. So there will also be some areas where money will have less purchasing power.

Another factor to consider is that while things like housing may become cheap, holding on to that house may become quite expensive. Expect property taxes to increase substantially, as governments attempt to squeeze whatever is left.

[blam]

"Another factor to consider is that while things like housing may become cheap, holding on to that house may become quite expensive. Expect property taxes to increase substantially, as governments attempt to squeeze whatever is left."

Housing Market Recovery: On the Same Schedule as Godot

[snip]

"Gradually, people are coming to see houses in a new light. Soon, they’ll see them as money-pits…as expensive follies…and as a pain in the neck. Instead of being proud to have a McMansion…they’ll be embarrassed…like having a car with tail fins in 1985…or wearing a mullet in 2010."

"Not only that, it will also be seen as a big waste of money. As the Great Correction continues, unemployment will remain at high levels…savings will increase…and people will want to cut expenses. Among other things, they’ll want smaller, cheaper houses. They’ll want to dump their suburban castles and walk away from their country palaces."

Houses will be losers.

[politicket]

Another factor to consider is that while things like housing may become cheap, holding on to that house may become quite expensive. Expect property taxes to increase substantially, as governments attempt to squeeze whatever is left.

This is true, especially if people hold mortgage loans. All loans will become harder to pay, due to reduced wages and benefits.