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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (27729)	3/3/2005 4:36:38 PM
From: John Vosilla	Respond to of 110194

What you just said is not possible. Clensing of debt (wiping it out, ie. destruction of capital) is the definition of deflation Widespread deflation does not necessarily happen if debt encumbering an asset class gets cleansed. Just look at all the debt wiped out from my example of the S&L fiasco 15 years ago. That was pretty widespread as just about every office building and shopping center in this country had it's value cut in half or even worse. Something for both you and Heinz to ponder.