Do you think there is any chance of Deflation in the US ? - GoFuckYourself.com

Kard63 · 05-15-2008, 05:43 PM

If McCain gets elected (lets just pretend please. move past the political bullshit and talk economics.) and he doesn't bail out everyone related to the mortgage crisis do you think there is a chance of deflation in the US? Interest rates are already low, they couldnt go A LOT lower. On the other hand it seems like dumb americans are always willing to spend more, even when they don't know what tomorrow brings or how they will survive. That seems like it make it less likely.

I'm all liquid, no debt, money in the bank. I could use some deflation.

Fat Panda · 05-15-2008, 06:11 PM

Deflation sure sounds good to the average person, but deflation is actually a 100x's worse than inflation. With deflation incomes and prices fall, however debt payments (car, mortgage, boat loans, etc) stay the same. Loads of people default and the economy tumbles hard...amongst other problems...

Kard63 · 05-15-2008, 06:56 PM

Quote:

Originally Posted by SAC

Deflation sure sounds good to the average person, but deflation is actually a 100x's worse than inflation. With deflation incomes and prices fall, however debt payments (car, mortgage, boat loans, etc) stay the same. Loads of people default and the economy tumbles hard...amongst other problems...

If it sounds good to the average person then the average person doesn't understand, lol. I don't have debt of any kind and I have loot in the bank.

AlienQ - BANNED FOR LIFE · 05-15-2008, 07:01 PM

I Invented Loot in the bank.

woj · 05-15-2008, 08:15 PM

I'm not sure hoping for deflation is the best strategy now a days... by keeping money in the bank right now, you are probably earning negative inflation adjusted return...

Kard63 · 05-15-2008, 08:16 PM

Quote:

Originally Posted by woj

I'm not sure hoping for deflation is the best strategy now a days... by keeping money in the bank right now, you are probably earning negative inflation adjusted return...

I probably am but I've wanted to buy a house for some time. Just waiting for the bottom to hit around here. Don't wanna lock it up in something when I don't know when I'll need it.

dready · 05-15-2008, 08:45 PM

Deflation would probably only happen if people stopped borrowing money.

pocketkangaroo · 05-16-2008, 02:06 AM

Deflation is horrible but isn't it really the only thing that would fix the economy long term? I just think bailing out banks even more (along with homeowners) will keep homes at an artificially high level that they shouldn't be at. Fact is that homes are overpriced and the quicker they get back to reality the better off the economy is.

teomaxxx · 05-16-2008, 02:13 AM

so far FED is doing everything they could, to have Japan kind of scenario (zombification of banks), while trying to re-inflate. Hard to tell what will be the outcome of it....But to reinflate economy without raising wages is not possible,

Someone should tell them...

But at the end there is not enough money in the system to backstop all big players in case of "Credit Default Swap" explosion, which would bring deflation into the game.

05-15-2008, 05:43 PM	#1
Kard63 Confirmed User Join Date: Nov 2003 Location: 237 619 975 Posts: 8,944	Do you think there is any chance of Deflation in the US ? If McCain gets elected (lets just pretend please. move past the political bullshit and talk economics.) and he doesn't bail out everyone related to the mortgage crisis do you think there is a chance of deflation in the US? Interest rates are already low, they couldnt go A LOT lower. On the other hand it seems like dumb americans are always willing to spend more, even when they don't know what tomorrow brings or how they will survive. That seems like it make it less likely. I'm all liquid, no debt, money in the bank. I could use some deflation. __________________

05-15-2008, 07:01 PM	#4
AlienQ - BANNED FOR LIFE best designer on GFY Join Date: Mar 2003 Location: IALIEN.COM - High Definition Video and Photographic Productions -ICQ 78943384 Posts: 30,307	I Invented Loot in the bank. __________________ NAKED HOSTING FTW!11 I'm On The INSANE PLAN $9.95/mo! \| The Alien Blog Adult News Worth Reading Updated Daily \| Content For Sale! 641 PICS 216 MINUTES OF VIDEO $350.00 \|ICQ: 78943384 \|

05-15-2008, 08:15 PM	#5
woj <&(©¿©)&> Industry Role: Join Date: Jul 2002 Location: Chicago Posts: 47,882	I'm not sure hoping for deflation is the best strategy now a days... by keeping money in the bank right now, you are probably earning negative inflation adjusted return... __________________ Custom Software Development, email: woj#at#wojfun#.#com to discuss details or skype: wojl2000 or gchat: wojfun or telegram: wojl2000 Affiliate program tools: Hosted Galleries Manager Banner Manager Video Manager Wordpress Affiliate Plugin Pic/Movie of the Day Fansign Generator Zip Manager

05-15-2008, 08:45 PM	#7
dready Confirmed User Industry Role: Join Date: Oct 2002 Location: Toronto, ON Posts: 5,247	Deflation would probably only happen if people stopped borrowing money. __________________ ICQ: 91139591

05-16-2008, 02:13 AM	#9
teomaxxx Confirmed User Join Date: May 2003 Posts: 2,734	so far FED is doing everything they could, to have Japan kind of scenario (zombification of banks), while trying to re-inflate. Hard to tell what will be the outcome of it....But to reinflate economy without raising wages is not possible, Someone should tell them... But at the end there is not enough money in the system to backstop all big players in case of "Credit Default Swap" explosion, which would bring deflation into the game. Last edited by teomaxxx; 05-16-2008 at 02:16 AM..

05-15-2008, 06:11 PM	#2
Fat Panda Porn is Dead. Move along. Industry Role: Join Date: Aug 2006 Posts: 13,295	Deflation sure sounds good to the average person, but deflation is actually a 100x's worse than inflation. With deflation incomes and prices fall, however debt payments (car, mortgage, boat loans, etc) stay the same. Loads of people default and the economy tumbles hard...amongst other problems...

05-16-2008, 02:06 AM	#8
pocketkangaroo Confirmed User Join Date: Jan 2005 Location: Chicago, IL Posts: 8,452	Deflation is horrible but isn't it really the only thing that would fix the economy long term? I just think bailing out banks even more (along with homeowners) will keep homes at an artificially high level that they shouldn't be at. Fact is that homes are overpriced and the quicker they get back to reality the better off the economy is.