On Fri, 19 Nov 2010 15:56:12 -0800, jps wrote:

On Fri, 19 Nov 2010 18:14:03 -0500, HarryK wrote:

On 11/19/10 6:06 PM, Wayne.B wrote:
On Fri, 19 Nov 2010 08:58:22 -0500, wrote:

...hysterical...

Sadly.

http://www.youtube.com/watch?v=PTUY1...ayer_embedded#!



That would be really funny if it weren't so true. On the other hand I
don't know what I'd do to fix the economy either. How about
subsidized boats for retired folks? That would put a lot of people
back to work in North Carolina, Florida and a few other places. It
would also drive up the price of boats which would relieve this so
called deflation.


I haven't noticed any deflation.

Well, if you count the housing market, a healthy portion of our
individual net worth and among the major drivers of our economy, you
could make an argument for deflation.

The rise in food, energy and all else may not make up for the loss in
value and the loss of liquidity the housing market is causing.

Thoughts?

The major problem with deflation is that companies would have to lower
prices to the point where they wouldn't be able to sustain the
business. It's sort of like supply and demand in that prices would
fall, but demand would fall also, since there would be even more
layoffs, with fewer people able to buy goods. It becomes a downward
spiral that eventually (not that slowly actually) leads to major
economic depressions.

Here's a good article:

http://www.telegraph.co.uk/finance/e...dangerous.html