Are we starting to see some light at the end of the tunnel? (user search)
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  Are we starting to see some light at the end of the tunnel? (search mode)
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Author Topic: Are we starting to see some light at the end of the tunnel?  (Read 6932 times)
TeePee4Prez
Flyers2004
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« on: March 23, 2009, 10:52:15 PM »

But deflation wouldn't necessarily be a terribly bad thing if it happens slowly.

Ask the Japanese how well that went.

For the housing market, MASSIVE deflation would be a great thing.
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TeePee4Prez
Flyers2004
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Posts: 10,479


« Reply #1 on: March 24, 2009, 06:25:41 PM »

Right. If we go by median housing prices, we are still about halfway to making it back to where we should be. I couldn't believe how expensive housing had become until I saw the charts.

Keep in mind that a good deal of the problem was also lack of income growth in the lower 90-95% of the population.  Inflating these incomes would be another effective way to 'regain a balance' that would be much less damaging than the heavy deflation caused by the housing decline.

Well, something's gotta give.
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