Discussion in 'Economics' started by intradaybill, Dec 22, 2010.
worthless stocks goes to zero isn't deflation.
home prices SOLD at bid is not deflation
what is deflation? there is no such thing as deflation prices for commodities don't go to zero . stock go to zero and wortless bonds in bank balance sheets are worth zero.
a 50% discount is not deflation..
if there is an oversupply energy or products in the market prices goes down that is no deflation..that is wealth.
people are broke and cannot to buy homes why should the price go up.
i find a 5% discount is 'deflation' for a house
or that a 10% price correction is a crash. that is free market capitalism
the fed can but shouldn't control price in the open market place.--it's called market manipulation.
deflation is not the end of the world. it is good for capitalism. it cleans out the the excesses and bubbles in the system.
I must have shopped at the wrong grocery store today!
Quick, someone let the Japs know... The poor dears are at their wits ends, trying to deal with their deflation problem. If only they realised that all these things they're so unhappy about are actually good for them, they might just get to relax and enjoy themselves.
It seems to be a daily occurrence around here with these inflationistas. I still fail to see the logic of how a mean reversion in asset prices following the biggest credit orgy in history is the end of the world.
Someone still has to explain to me, straight faced, how housing prices could literally triple inside of 10 years (I suppose these fools see this as "good inflation") and then when, God forbid, these prices fill in 20-30% of those credit fueled gains, we should just open the money spigot to fight the deflationary bogeyman.
Meanwhile, we have an economy that has literally functioned off of bubble-economics, tuition prices have gone sky high, utility costs, gasoline prices, etc, etc all spiralled upwards during the free money period and we are still stuck with these entrenched outrageous prices.
Outside of the F.I.R.E. sector and the commodity bubbles it continually incites, the real economy continues to suck wind and slowly collapse. The Fed, in all of its perceived glory, just does what it does best, inflate asset bubbles and hope people are dumb enough to mistake that for economic growth.
At the very least, they are still standing 20 years later. You think the U.S. has a snowball's chance of hell of remaining a unified semi-productive country with 20+ years of Quantitative Easing, prolonged unemployment and sky high medical costs, housing costs and commodity inflation.
Or are you going to retort with another of your pithy little, know it all replies?
Deflation is bad bad bad. Don't even go there. You'll be crying for the good ol days of stag-flation.
It's a generational bailout. The policymakers place the debt burden upon future generations so as not to realize losses in housing value, stock portfolios, etc, etc. Truly a despicable act of sheer desperation.
Meanwhile, the younger generations awake to housing prices double or triple what they were 10 years ago, tuition costs double or triple what they were 10 years ago, sky high cost of living with a miserable job market.
Reduce the cost of living, reduce the burden of onerous taxation and the maze of regulations that any small business has to jump thru, onerous employee benefits packages, payroll taxes, etc, etc..that make running a business here massively non-competitive to emerging markets and THEN we have a chance of real economic growth.
How does a company compete or bid for work in the global marketplace when the cost of living is sky high? Meanwhile, the public sector leeches place another enormous burden on the private sector as they need their guaranteed pensions and legacy costs covered.
It's a complete fiscal disaster on all angles.
I will retort with whatever I think is appropriate. If you don't like it, there isn't much I can do about it, is there?
Generally, I am not sure I see the point you're making. Why does it have to be such a ridiculously trivialised false dilemma? Either it's deflation or 20+ years of continuous QE... You don't think you're overdramatizing things a bit now, do ya? Personally, I see no good reason why US follows one of your arbitrary extreme scenarios. You are certainly not offering any rational reasons, just dire predictions.
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