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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: stockfiend who wrote (77759)4/16/2008 12:28:49 PM
From: mishedlo  Read Replies (2) of 116555
 
Low interest rates do not equal deflation.
Never said it was. But it is what one would expect to see in deflation.

People walking away from their homes does not equal deflation.
Never said it was. But it is what one would expect to see in deflation.

Credit contraction does not equal deflation.
Believe what you want but a net reduction in money supply and credit is deflation in Austrian Economics.

It is your right to believe otherwise. You can also believe in the tooth fairy if you want.

My model fully explains why interest rates are low, gold is rising, and housing is plunging. Inflation models cannot explain low interest rates while I called for them.

But as I said, you are entitled to believe what you want.

Mish
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