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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Mike Johnston who wrote (34691)	6/30/2005 11:41:46 AM
From: John Vosilla	Respond to of 306849

tInflation does more long term damage to the economy than any deflation would. The deflationary outcome that you predict would not be as bad as the one that i predict (stagflation). What is better a depression or a depression with inflation ? At some point in the future the foreclosure section of the local paper will be bigger than employment section, no matter if we end up in deflation or hyperinflation. I disagree. Depression is the worst with hyperinflation not far behind. Given the status of the US as the reserve currency and major consumer of resources I think our leaders know this already and feel hyperinflation could never happen in this country so they do what is needed to avert depression. Most likely best case is stagflation with a persistent low rise in interest rates and inflation over the next cycle. Housing down big in certain bubble markets but flat to slightly up stock market flyover country RE as multiples to cash flow contract.