The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: GraceZ who wrote (151222)	9/27/2008 3:18:58 PM
From: grusum	Read Replies (1) of 306849

yes, i agree with what you just wrote. would it be possible to create a deflationary environment where prices gradually decrease over time? i don't mean a deflationary depression. i believe that deflation in prices can happen in thriving economy. most people just don't associate the two. do you think that a deflationary environment would be a good one? (imagine having the value of your savings go up every year instead of down.) do you think that it is possible to have general deflation with a fractional reserve system? would there be any bad consequences to having general, stable, sustained deflation? (what would they be?)

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