Deflation

[Banjo]

Nov. 16 (Bloomberg) -- The cost of living in the U.S. probably fell in October by the most in almost sixty years, while manufacturing and homebuilding sank deeper into a recession

http://www.bloomberg.com/apps/news?pid=20601087&sid=aTxtStJrKGr0&refer=home

 

[peilthetraveler]

I would not call the popping of a speculative bubble deflation, yet people really want to look at it this way.

 

[nazzdack]

Quote from peilthetraveler:

.............look at it this way...............

The inability to borrow money because of a lack of confidence on the part of bankers, (contraction/deflation of credit), is a more proper representation of deflation which indeed is taking place. A bear market in physical commodities usually accompanies it.

 

[MarginCalled]

Quote from peilthetraveler:

I would not call the popping of a speculative bubble deflation, yet people really want to look at it this way.

Normalcy -> Things are business as usual.
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Speculative bubble -> inflation, relative to
the previous uninflated state.
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Popping the bubble -> deflation, relative to the previous inflated state.
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Normalcy?