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

To: GraceZ who wrote (151275)	9/27/2008 4:35:41 PM
From: grusum	Respond to of 306849

once again we are in agreement. as a matter of fact, i think people could adjust much easier to mild stable rates of deflation, rather than inflation. thank you very much for taking the time to answer my question.

To: GraceZ who wrote (151275)	9/27/2008 4:40:58 PM
From: John Vosilla	Read Replies (1) \| Respond to of 306849

Grace there is disinflation and then thee is outright deflation/depression. We've gone through the later in many RE markets a good 18 months already in plunging asset values and local GDP drop in RE related activities.. Yet we are not officially in recession in large part because overall CPI is understated IMHO. And most other goods and services have actually been skyrocketing the past couple of years.. Deflationists expecting a major contraction in nominal GDP and money supply can only point to saying long term treasuries have been a good place to hide of late.. A moral victory at best that will decimate them coming out of this funk that seems to have the worst characteristics of 1973-74 and 1990-91..