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To: Claude Cormier who wrote (136602)	11/15/2008 12:09:39 PM
From: Rocket Red	Read Replies (4) \| Respond to of 313202

So far the consumers are not getting any benifits as they are left too pick up the tab on bail outs. Lay-offs have only started as the whole system is buckeling. banks are hoarding the cash. All 3 Auto Makers ready too fold into Bankruptcy that will not only bring them down but also a whole bunch more companies who are directly involved with the big 3. The list goes on and yes inflation will come back but not for a few years for sure.This thing is not going too be fixed for awhile as its getting worse not better out there. Yes there are some super deals out there and stocks in the end will far out reward gold or silver bullion

To: Claude Cormier who wrote (136602)	11/15/2008 12:14:18 PM
From: loantech	Read Replies (2) \| Respond to of 313202

Claude I know there has been a debate for years on the epic thread and mishes thread about inflation and deflation but IMO it has taken an expansion of credit and money from the credit granting to produce inflation. As credit contracts and or there are defaults I think that spells deflation as the huge guarantees may not be keeping up with the current or future contractions at least for the short and intermediate terms. In the face of defaults and borrowing slowing down which is levered the opposite way in a fractional banking system just as 10 million of credit to a member bank from the fed can turn into 100's of millions of loans 10 millions of defaults can lever the other way to 100's of millions of contraction on the banks books as their phoney reserve requirements shrink.BWDIK? That is why these 3-5% mortgage defaults and 10% of people delinquent is wrecking such havoc IMO.