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Why Deflation Will Be Long Term
- Thread starter libertad
- Start date
tradersboredom
Guest
in the long term, economies where there is fiat money, inflation is a reality.
the price of houses are just price it was in 2000 1999 so it's not deflation at all.
price of house is dependent on jobs and income levels.
the price of houses are just price it was in 2000 1999 so it's not deflation at all.
price of house is dependent on jobs and income levels.
Quote from libertad:
http://seekingalpha.com/article/112024-why-i-see-long-term-deflation
Several years of raucious and excessive credit availability and its usage marked the high for consumer demand....
The test of demand finds itself in prices.....
The question is.....what prices are moving up today ?
Why will prices move up tomorrow ?
The depression taught many what living without means....and how important savings really is....
Waking up having no money and no where to go is a very powerful wake up call......
Intelligence will begin to mean understanding and living within one's means....the next time around.....
Many will be educated by the "school of hard knocks"....
Quote from fearless9:
Why? asset prices are moving down.
regards
f9
Smart money is trying to put their cash to work ASAP. They took it out in 2007 and now they are fighting over each other to employ it as the suckers are selling.
Dollar is near worthless and will be devalued hardcore. If you sit in cash, you are bending over. Trillions of dollars will be added to the system, why the f**k would you want to be in cash?
tradersboredom
Guest
i wouldn't be holding cash paying 1% interest rate if i didn't have to.
either you spend the money or invest it.
wealthy saudi's with huge cashflow from oil wells don't hold any cash.
Russia, OPEC were rolling in the cash when oil was above $100,literally printin cash.
either you spend the money or invest it.
wealthy saudi's with huge cashflow from oil wells don't hold any cash.
Russia, OPEC were rolling in the cash when oil was above $100,literally printin cash.
Quote from tradersboredom:
in the long term, economies where there is fiat money, inflation is a reality.
the price of houses are just price it was in 2000 1999 so it's not deflation at all.
price of house is dependent on jobs and income levels.
Quote from dont:
Why?
Because the banks are insolvent. Those bad loans are not going to be paid back!
This is not a crises of liquidity its a crisis of solvency.
You couldn't be more wrong.
WHY ARE BANKS INSOLVENT??
Because:
a) Toxic Mortgage Paper
b) CDS written on that paper and institutions who hold it.
Real simple, here.
Government buys ~2 Trillion worth of toxic mortgages.
Then nullifies all CDS as nonnegotiable instruments. Preferably, outlaws them.
Banks are then solvent.
That hasn't happened.
Why?
Quote from Anaconda:
Smart money is trying to put their cash to work ASAP. They took it out in 2007 and now they are fighting over each other to employ it as the suckers are selling.
Dollar is near worthless and will be devalued hardcore. If you sit in cash, you are bending over. Trillions of dollars will be added to the system, why the f**k would you want to be in cash?
Why do you assume cash= dollar. (narrow thinking)
regards
f9
The market is telling you if you dont have leverage and have cash your in great shape. All this talk about a bond bubble as of right now is BS
Quote from fearless9:
Why do you assume cash= dollar. (narrow thinking)
Not narrow thinking but real knowledge.
Hoarding cash, be it the dollar or whatever other fiat currency is a sucker move. Not one central banking is contracting money supply, they are all inflating it.
As I mentioned in a previous post, look at food, water, medical & electricity. No deflation there.
Quote from Anaconda:
Not narrow thinking but real knowledge.
Hoarding cash, be it the dollar or whatever other fiat currency is a sucker move. Not one central banking is contracting money supply, they are all inflating it.
As I mentioned in a previous post, look at food, water, medical & electricity. No deflation there.
And so anyone who sold aussie and bought yen a while back should have been reading the tea leaves in water food electricity etc instead.
Funny, here I was thinking that it is all about timing.
Viva ET ... greatest show on earth.
It is the broad sweeping statements, usually narrow based that I love the most.
regards
f9