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

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To: Jack of All Trades who wrote (71240)10/6/2006 4:59:57 PM
From: GST  Read Replies (3) of 110194
 
Obviously you can have buyers and sellers markets in asset classes. In Hawaii, my long term home, we had declining house prices throughout the 1990s. Now they are at new highs but drifting lower in a shitty market. But anybody who takes something like the ebb and flow of housing prices and then generalizes that to say we are in a period of inflation or deflation is just abusing the English language. Deflation refers to a persistent long term trend in all prices when taken together -- and nothing less. You can have opposing trends in various categories of goods and services and of course you can have wild short term price movements. The issue is only in focus when you add them all together and look at the long term trend.
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