If you have cash, deflation's great.
But what happens is that prices and therefore profits fall, which means wages and unemployment rise, which leads to reduced demand, etc., until, well, you know rest of drill. We saw it in the '20s and '30s.
Yes, in the short run, deflation is a boon, but it is short lived.
Krugman and Summers now officially on board for proposition that bubbles are good and necessary, not a mis-allocation of capital. I suppose they're right, the Great Recession brought on by the bursting of housing was a good and great thing. Time for another systemic crisis and exponential increase in debt caused by another bursting bubble.
Yes, indeed, bring it on.
I cannot for the life of me understand why any thinking human being listens to such male bovine manure. |
