they RAISED interest rates? Hear me out. I'm contrarian by nature just because I'm an insufferable prick so when EVERYONE and their brother claims we need low interest rates and a stimulous package, I tend to think the opposite may be true. I believe that deflation can be a good thing. The only area where I really seeing it hurting the economy is in housing prices. And if you have owned your home for more than 5 years and haven't taken out every dollar of equity you put in, then you have no problem. If you did purchase a home in the last 5 years and are currently underwater but CAN afford your payments, they should allow a depreciation schedule so that you can reduce your taxes. If you are underwater and can't afford your payment, then you should be forced to sell, and the loss should be split 3 ways between the lender, the individual, and the govt. Meanwhile, housing becomes WAY more affordable and a whole new class of buyers who didn't try to game the system comes in. Money POURS in from overseas to the govt., which they can then give to banks (legitimately) to lend out to responsible borrowers for business or homes. People are encouraged to save. Those who were irresponsible can also borrow, but only up to an amount theat they can handle with the amount of the loss they incurred on their previous default. Now, instead of this new massive govt spending plan, ahem, stimulous package, govt. cuts spending dramatically. Jobs are created by private enterprise who now can afford to operate with realistic credit, low property and commodity prices. Govt. can retire current debt much cheaper than can be by keeping rates low, buying back treasuries at pennies on the dollar. kepp taxes low, cut out the fat from govt. Dollar strengthens against world currencies, making things cheaper. Stock market can't go much lower than it already is. I just put this together briefly and haven't given it that much thought, relying primarily on my contrarian nature. So, please be respectful when poking holes in this argument and tell me why I am wrong and geniuses in Washington are right.