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

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To: John Vosilla who wrote (49844)1/16/2006 12:49:42 AM
From: kris b  Read Replies (1) of 110194
 
Not sure about the purchasing power of your dollar on things you need.

They get cheaper. For example, it took ten years for nominal rents to recover to the 1981 level. Gasoline was a lot cheaper with oil at $ 10/bbl in 1986 versus 1981. Many other necessities of life followed that patter, with the exception, of course, of anything that was controlled/fixed/rigged by the government. I truly enjoyed (I bought two brand new cars, at 30% discount, from dealers who were going broke. My house at 40% discount from the 1981 price) deflation even with 16%-20% unemployment. Fortunately I wasn’t one of them <ggg>
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