Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Deflation -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (456)	10/28/2008 10:20:24 PM
From: Mike McFarland	1 Recommendation Read Replies (1) \| Respond to of 621

It seems to me that the quick shot of deflating stock markets, which is mostly behind us, was all the deflation we are going to see. Free money for all, no matter the cost down the line. Hell, I got a 5.25% auto loan the other day. I didn't need the loan and I'll probably pay the balance off next spring but I was in and out of my credit union in ten minutes. The whole thing with corporate paper is very odd-- that must be the bulk of the problem and main risk here. Personally, I'd like to see a little deflation as I'm a saver. But I am not a happy saver--I expect inflation and a gradually declining standard of living. The price of a ten trillion dollar public debt. No free lunch. I'll bet the dollar loses half its value in the next decade, so the value of our debt will be halved, so maybe it is a good thing. So you have to be a bit of a sucker to own treasuries (which I do). But I sleep at night, treasuries are a nice short term thing to feel safe each day. And I'll lose half my wealth over the next decade as the dollar declines. That's my guess anyway. The whole house of cards comes tumbling down if you deflate the balloon underneath--this is going to be a close one, but they probably caught it in time.