Quote from: capoeira on August 01, 2014, 09:05:46 PM

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Quote from: pleiotropik on August 01, 2014, 01:33:31 PM

"housemarket is not a ponzi, its inflation driven"

Interesting way of putting it. Would that mean that from 2008 to 2009 US had negative inflation in the order of 60%?

Negative inflation would be "deflation."

Deflation, like in deflationary. That's good, right?

It really depends on what economist you talk to whether inflation or deflation are a "good" thing.

There's actually a good bit of evidence showing that very minimal inflation is good (>=~1%). It gets people to buy things rather than continually waiting for prices to go down.

In this forum, this opinion, shared by about 95% of economists...will cause you a lot of agressive replys.

Btw: what is good or not for a specific economie depends realy on many other factors. Economies try to not find out how deflation would affect their specific situation... because when a deflation is negative it turns desasterous.....inflation is just better to control

Lol, noted. I'm not too concerned. I have pretty thick skin from years of BBS's, newsgroups, and forums

Thanks for the heads up though!!