SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Mish's Global Economic Trend Analysis
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: rudyt who wrote (70513)10/26/2007 1:53:24 PM
From: mishedlo  Read Replies (3) of 116555
 
disinflation is a falling rate of inflation.
dictionary.reference.com

With disinflation would come falling commodity prices and falling interest rates and rising productivity.

All of those happened in the 90's and the stock market took off.
That is part of a K-Cycle autumn

That said, credit did explode in the 90's. Rising productivity in the internet boom and falling commodity prices masked this inflation by making goods cheaper.

Deflation is the payback for an unsupported boom based solely on credit expansion.

The same thing happened in the 1920's

Credit soared and debts and malinvestments along with it.
The same thing is happening again.

In housing
In commercial real estate
In stock prices

Oddly enough housing speculation in florida that went bust in the 1920's was the first hint of the problems to come.

Mish
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News