Nov. 16 (Bloomberg) -- The cost of living in the U.S. probably fell in October by the most in almost sixty years, while manufacturing and homebuilding sank deeper into a recession http://www.bloomberg.com/apps/news?pid=20601087&sid=aTxtStJrKGr0&refer=home
I would not call the popping of a speculative bubble deflation, yet people really want to look at it this way.
The inability to borrow money because of a lack of confidence on the part of bankers, (contraction/deflation of credit), is a more proper representation of deflation which indeed is taking place. A bear market in physical commodities usually accompanies it.
Normalcy -> Things are business as usual. v v Speculative bubble -> inflation, relative to the previous uninflated state. v v Popping the bubble -> deflation, relative to the previous inflated state. v v Normalcy?