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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: Ilaine who wrote (9258)9/15/2001 12:35:46 AM
From: energyplay  Respond to of 74559
 
>>>Deflation is good for creditors.<<<

Up to the point where significant numbers of the debtors can't make payments... Then the creditors loose big.

Look at the "sub-prime" lenders for examples ...like Providian (PVN)

At some point the creditors want to avoid deflation also.

Conversely, inflation is good for debtors up until no one will loan any money. But debtors do tend to benefit heavily from inflation for a long time.

Best Regards, energyplay