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To: Hydroshock

We’re in a deflationary period. Anyone who uses or thinks “inflation” is stuck in a long-gone cycle.

NOTE: home prices do not tend to decline during periods of inflation. Debt prices (the inverse of interest rates on debt), do not tend to decline during periods of inflation.

Credit crunches from a lack of money do not tend to occur during inflationary periods, either.

SHORT VERSION: NOT INFLATION...DEFLATION.


54 posted on 08/17/2007 7:02:36 AM PDT by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: Southack

You maybe right, but I do think throwing money at this is now the wrong thing to do. It is not going to fix the underlying problem. many, many bad loans to people who can not pay them. What do you do with a consumer driven economy where the consumers can not afford to consume?


55 posted on 08/17/2007 7:07:47 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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