Quote from: stompix on March 16, 2022, 06:59:47 PM

Quote from: batang_bitcoin on March 14, 2022, 08:30:35 PM

Quote from: 325btc on March 14, 2022, 07:19:25 PM

We know markets will crash and huge deflation...and economy will melt down...

Do you mean to say inflation instead?

Theoretically, a market crash without subsequent government policy to negate the effects can cause deflation.

Remember that deflation means lower prices, less demand for stuff, and a market crash would do exactly this, lower prices for shares for once and fewer returns as companies try to consolidate or avoid bankruptcies, an exodus of money into more secure stuff triggering further sellout, and poeple far less inclined to spend money on goods. The great depression is the perfect example, we had a market crash, assets were liquidated by cash-strapped companies, nobody had to buy them, ending with an average of 7% decline per year in prices.

Since he has mentioned about economy, I've thought of inflation instead. When the market crashes, inflation is what I've been thinking of but with that theoretical explanation, it's right and I've understand about the meaning of it. Prices would decrease and that's the deflation that he's telling and I'm thinking of the other effect for the economy. Well, either of the two as long as the effect would be giving negative impact to each individual, it is what we don't like to happen but it's inevitable.