Monday, Apr 05, 2010
All is quiet in the print shop tonight..
Yahoo: Deflation on the prowl as Bernanke shuts down his printing press
We were all too close to the tipping point illustrated in Irving Fisher's Debt Deflation Causes of Great Depressions , the moment when the sailing ship catches water and capsizes instead of righting itself by natural rhythm.
Work by Berkeley Professor Barry Eichengreen shows that global trade, industrial output, and stock markets all crashed at a faster rate over the six terrifying months after the Lehman crisis than during the early 1930s. How quickly we forget, and how easily we are seduced by a 76pc stock rally into thinking it was a storm in a teacup. Just wait until the day fiscal retribution comes.
Posted by mark @ 12:28 PM (517 views) Add Comment
2 Comments
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1. enuii said...
Having just checked my local area on rightmove there are no signs of deflation of asking prices and they are the same if not a little higher in some cases as they were last year and the year before. Surely deflation will eventually creep into the UK's housing stock as the prices being asked for some of the naff shoebox properties are more out of sync with the cold economic reality of the real world than they were in the summer of 2007?
2. landofconfusion said...
Volumes have mostly stalled. Here. Some of the better quality houses have moved, if you excuse the pun, but others like my immediate neighbour's haven't.
They currently have their house up for 2.5% less than it's 2005 sold price and still haven't had any firm offers. In fact it seems that buyers are only willing to part with their cash if the house is more or less perfect but judging from the pics' on rightmove they have some weird tastes.