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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: David W. Taylor who wrote (928)9/22/2003 1:05:23 PM
From: ild  Read Replies (1) of 110194
 
David, I agree with you on your take on inflation/deflation.
People confuse inflation in prices and inflation as a monetary phenomenon. In fact rising consumer prices and stagnant wages is a very much deflationary because it squeezes the consumer. It RE bubble gets pricked it will also be very deflationary. It used to be that if a guy lost a job and filed bankruptcy he'd have $20K in bad loans. Now this number would be over $100K. Money will be destructed faster than Bernanke can print it.
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