To: Southack
I am afraid you are confused friend, there is no way that deflation makes us ALL richer anymore than inflation makes us ALL richer. Some benefit but others are hurt. Those who have fixed incomes will benefit greatly from deflationary price reductions provided their incomes stay fixed but those who own assets will see the value of those assets decline. Those who own assets which are heavily mortgaged will be hit doubly hard as the assets decline in value while it becomes much harder to raise the money to pay off the debt as the value of each dollar rises and the debt remains fixed. A house mortgaged for two hundred thousand can drop in value to a hundred thousand leaving the homeowner no choice but to walk away and lose his investment and his credit rating, meanwhile renters may see their rent drop. I fail to see how the speed of money moving can prevent all this.
To: RipSawyer
" I fail to see how the speed of money moving can prevent all this."
Then you would likewise fail to see how computer makers could benefit from moving more compauters at lower prices, how cellular phone companies benefit from people making more cell calls at lower rates, or how a long distance company might benefit from larger call volumes at reduced prices.
How does Intel manage to keep cutting the prices on CPU's?! Those crazy guys must not understand business like you do...
69 posted on
11/06/2002 4:47:48 PM PST by
Southack
To: RipSawyer; Southack; Doctor Stochastic
Does this mean the bubble in the CA real estate market just popped?
Since Jan 1, capital gains on real property will be due upon sale... predictions for CA?
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