Ten Things You Should and Should Not Do During Deflation

Market Oracle ^

[Windcatcher]

Bingo. This is the time to be buying CD’s (or if you’re concerned about bank failures, cold hard-cash in a safety-deposit box)

[Dr.Zoidberg]

...cold hard-cash in a safety-deposit box

Safe bolted to the basement floor.

Items not in your possession have been known to suddenly become forfeit, IMHO, a safe deposit box isn't.

[Jeff Chandler]

Time to invest in CDs and T Birds.

[SFC Chromey]

CD’s might be returning 1 to 1.5%. Not very likely to outperform. Best place to be over the last year has been US Govt Securities and international sovereign debt. Both were up +/- 6% last year. This is likely to continue for the near future (6-9 months)

[Windcatcher]

I’ve been seeing CD’s ebb and flow, but your point is taken. I recently got into an 11-month CD at 3.15%. Sometimes deals appear, but it means checking at the bank often.

[I see my hands]

Aren't people nice providing coping strategies? Other wise some might revolt and that would be bad.. or good. Am I supposed to know?

[o_zarkman44]

Strange he didn’t mention investing in guns. ammo, and survival items.

[I see my hands]

Now that we've tossed you in crap creek here's a paddle.. just stay in the creek.

[FormerACLUmember]

Deflation, if it comes at all, will certainly be followed by massive INFLATION as the government prints worthless money.

[Age of Reason]

Sometimes I think all this deflation talk is to distract us while the government tries to inflate us out of this recession.

[Chet 99]

I personally think that deflation is preferable to inflation - but that’s because I am debt free. Deflation is crushing to people with high debt loads and few cash reserves. Inflation crushes people who save money.

[babyfreep]

ping

[AprilfromTexas]

4 later

[RC one]

Coincidentally, I have been studying deflation tonight; Here area couple of interesting links related to the topic at hand:
http://www.telegraph.co.uk/finance/2861780/Why-worry-about-the-D-word.html

http://www.goldensextant.com/Gold&Deflation.html

[Salvation]

Good stuff here!

[dalereed]

” I recently got into an 11-month CD at 3.15%.”

When the run on the banks started in August, I rook $150k out of my Money Market and put it in a 13 month CD @ 5%.

[dalereed]

I think that we are going to have deflation and massive inflation of the money supply to pay the government spending spree.

Prices will go down because the stimulus won't work and the printed money to pay for it will drive interest rates up, as Volcker did under Carter.

If that happens i’ll put at least a quarter mil in long term gov. bonds like at 15%.

[Chet 99]

Interesting times we live in say Confucious... almost all financial conventional wisdom rests upon the basic assumption of inflation of everything - wages, houses, rentals, investments...

[dalereed]

I’t wait and watch at this point.

Since obinawtion has retained Volcker I wouldn’t bet against my peojection at this point.