[TChris]

Deflation means falling prices.

Umm... No.

Go look up the definition and get back to us, K?

[Southack]

de-fla-tion   /dɪˈfleɪʃən/ Show Spelled Pronunciation [di-fley-shuhn] Show IPA –noun
1. the act of deflating or the state of being deflated.
2. Economics. a fall in the general price level or a contraction of credit and available money (opposed to inflation ). Compare disinflation.

[Nathan Zachary]

I don’t think we can go screaming ‘deflation’ just because real estate prices are dropping in California and a few other hot zones. The national average is what matters.

Places like California where prices were hyper inflated 3-500% over the space of 2-3 years was abnormal. Wiser people knew that this day of reckoning would come sooner or later to these markets.
Unfortunately, it’s the taxpayers that are paying for those crooks who took out mortgages they couldn’t afford hoping to flip these houses and make some quick cash.

These particular markets are outside of the other defaulted mortgage problem across the nation perpetuated by the community re-investment scam the democrats cooked up and had ACORN manage.