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

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To: mishedlo who wrote (50771)1/22/2006 4:00:36 PM
From: jimmg  Read Replies (1) of 110194
 
A great depression and hyperinflation are both extremely low probability events

Mish, how do you think we avoid a great depression under your deflation scenario? Declining asset values spur debt defaults causing unemployment causing further declining asset values and debt defaults. This would appear to be a vicious cycle that would be nearly impossible to break.

How do you we have a deflationary environment and not have a great depression as a result?
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