There are big differences between then and now. One major
difference is that there was very little in the way of household
debt, and no real bond market back then. Completely different from
now, where the total size of derivatives in equal to 10 years worth
of GLOBAL GDP. And that doesn't include credit cards, Commercial
real estate, defaulting mortgages, etc.
IMO we'll get inflation after we finish off the deflation and
deleveraging.
There are big differences between
The Deflation Scare
Posted by PA on 24th of Jun 2009 at 04:34 pm
There are big differences between then and now. One major difference is that there was very little in the way of household debt, and no real bond market back then. Completely different from now, where the total size of derivatives in equal to 10 years worth of GLOBAL GDP. And that doesn't include credit cards, Commercial real estate, defaulting mortgages, etc.
IMO we'll get inflation after we finish off the deflation and deleveraging.
Yup,If Matt and Steve's scenario
Posted by shamutooth on 24th of Jun 2009 at 04:42 pm
Yup,If Matt and Steve's scenario plays out with a crushing move down this fall I don't think anyone will be able to say it's inflationary.
Just be warned
Posted by ravun on 24th of Jun 2009 at 04:49 pm
down the line....now I am off the subject, work to be done
Ravun,I agree. At some point
Posted by shamutooth on 24th of Jun 2009 at 05:05 pm
Ravun,I agree. At some point there will be inflation,but maybe not just yet.