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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (367592)	1/21/2008 3:01:09 AM
From: tejek	Read Replies (2) \| Respond to of 1571527

Number 1 is healthy. Number 2 is not healthy. So what happens when the dollar value is decreasing faster than demand is falling, as is the case in the US today? Inflation. No, I think its deflationary. From what I've seen, I don't think inflation is our biggest worry at the present time. I think its deflation caused by the drop in housing prices; that coupled with the lack of financing availability and freeze up in the credit markets and with subprime mortgate resets prompting people to walk away from their houses creates a vicious cycle where more pressure is put on housing prices causing them to fall further. Here is Webster's definition: "a contraction in the volume of available money or credit that results in a general decline in prices"