[arete]

You make a very good case for deflation -- the worst possible outcome unfortunately.

Richard W.

[djf]

I don't see how that kind of scenario can happen, but I don't see how it can be avoided!
It's one thing if you drive around your block and see say 2 houses out of 20 being forclosed on. It's quite another if it's 16 or 18 out of 20. And the number I've heard is that something like 90% of real estate in this country has a mortgage on it.