Deflation

[Marquette]

Granted, I wasn't old enough to have lived through it, but didn't we go through the same thing in the 1970's?

 

[haha]

Granted, I wasn't old enough to have lived through it, but didn't we go through the same thing in the 1970's?

An interesting thing about the 70s is that the real economy, as proxied by corporate profits and dividend growth, was very strong. There was unemployment however.

Right now a big part of the real economy, housing, is in trouble.

Ha

 

[Lsbcal]

Seems to me there are some referring to deflation when they actually mean disinflation (see Disinflation - Wikipedia, the free encyclopedia). Also note the Dec CPI was +0.3% and for 12 months it was +4.1%.

 

[barbarus]

It is said that a house is now the major factor in most people's sense of financial well-being, even to the point of being more important than having a j*b.

If true, the collapse of the housing bubble is obviously going to devastate the economy when J6P wakes up to what his house is now worth. Perhaps he'll slumber on though, until good times return a few years down the road.