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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 (53954)2/16/2006 8:26:26 AM
From: Wyätt Gwyön  Read Replies (2) | Respond to of 110194
 
Mish,

it is not so much the popping of the bubble that is deflationary it is all of the things associated with it

that is what i meant by saying it would be "marginally deflationary". what i mean is the price decline of the bubble asset is not inflation per se (nor was its rise inflation). but the persistent rise in the price of goods and services in the wake of the bubble has been inflationary (in the traditional sense), so in the wake of a housing collapse, the persistent decline in associated goods and services will be deflationary (to the extent it happens).