eyephone said:Add global deflation fears.
http://www.forbes.com/sites/jonmatonis/2012/12/23/fear-not-deflation/Deflation is actually a good thing, because in a deflation prices drop and money becomes more valuable, so deflation encourages people to save money. Deflation rewards the prudent saver and punishes the profligate borrower. The way a society, like an individual, becomes wealthy is by producing more than it consumes. In other words, by saving, not borrowing. And during a deflation, when money becomes more valuable, everybody wants money. They want to save. Whereas during an inflation, you want to get rid of the money. You want to consume. You want to spend. But you don?t become wealthy by spending and consuming; you become wealthy by producing and saving.
Lower prices increase demand; they do not reduce or delay it. That?s why more and more people own flat-screen TVs, cellular telephones, and laptop computers: the prices of these goods have fallen, and people with lower incomes can afford them. And there are more low-income people than high-income people.
No apocalypse is complete without the zeds.momopi said:Refugees drinking unfiltered water from the Los Angels and San Gabriel rivers & park lakes fall ill to dysentery die and return as zombies.
Irvinecommuter said:Whatever...trying to refinance, need more people to buy US Treasuries
Deflation is not a Depression.
It's been shown that the Gub will pull out all the stops to prevent a downward spiral.
Regardless... I don't think we'll ever get to 1929 unless something catastrophic happens... like Zs, WWIII, a big flood or asteroids.
eyephone said:@Inc - previously you said, "deflation might not be a bad thing." I think it's the opposite.
irvinehomeowner said:No apocalypse is complete without the zeds.momopi said:Refugees drinking unfiltered water from the Los Angels and San Gabriel rivers & park lakes fall ill to dysentery die and return as zombies.
Liar Loan said:Remind me again... What happened to Irvine home prices in 1991?
Dallas Fed: Recession Is Unavoidable Without Russian Oil
The global economy likely won?t be able to avoid a recession without a resumption of Russian energy exports this year, according to a study by Federal Reserve Bank of Dallas economists.
?If the bulk of Russian energy exports is off the market for the remainder of 2022, a global economic downturn seems unavoidable,? economists Lutz Kilian and Michael Plante wrote in an article posted by the Dallas Fed Tuesday. ?This slowdown could be more protracted than that in 1991.?
The authors drew a parallel to the 1991 global recession, set off by Iraq?s invasion of Kuwait in the year prior that caused an oil-supply shock.