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

To: GST who wrote (92375)	3/17/2008 11:48:38 PM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

'It is ludicrous to think that the price you pay for living is going to go down because your assets are depreciating' I guess we find out for sure once the correction of the housing/credit bubble is complete.. Misallocation of capital into an asset class that collapses isn't a driving force long term for deflation? Or is it? Why do deflationists conveniently always overlook what happened in the late 1980's and early 1990's when commercial RE nationwide dropped an average 65-70%, residential RE in our three largest states crashed an average of 30-40%, Japan began it's decade long plunge into it's own version of our 1930's depression and fed chairman Greenspan almost blew it by still fighting the inflation war that had long since ended by 1990?