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crash2006

Credit Deflation

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Can anyone tell me when was there a credit deflation due to the financial markets, i know do you. Just like to see peoples answers, especially you jornos.

Edited by crash2006

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Its quite hard to play monopoly round my place since the dog ate the £500 notes.

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I want to know. I had throught there had never been credit deflation.

I'd argue that there are two well known candidates - Japan ~1990 and the USA in ~1930.

The problem with this post is that "credit deflation" is not a well defined term. Maybe we're talking about a shrinking money supply - which begs the question "exactly what do we consider to be money?" - or more literally a reigning-in of credit... which happens at every recession.

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Guest Daddy Bear
Can anyone tell me when was there a credit deflation due to the financial markets, i know do you. Just like to see peoples answers, especially you jornos.

NEVER

Now tell me ...

what is a "Crack Up Boom?" (I Know, do you know? Just like to see peoples answers, especially you deflationists)

That will get you talking.

DB

quick edit: If anyone mentions "what is money?...arghh

pps: Injinn (stay away ! smiley face)

Edited by Daddy Bear

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Credit deflation comes down to an increasingly conservative psychology including....

-creditors increasingly doubt debtors ability to repay

-debtors doubt there own ability to repay

-investors become pessimistic on asset prices and won't leveredge up

-owners of assets default due to falling prices

-faltering economy stresses ability to repay

and many others which feed into each other. So financial markets are a part of that, but there not the cause per say, psychology is.

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In a deflationary environment, debt is a killer, as its value increases while interest is added too.

this is a bust, pay down debt, get some cash.

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NEVER

Now tell me ...

what is a "Crack Up Boom?" (I Know, do you know? Just like to see peoples answers, especially you deflationists)

ooh oooh, I know. It's an explosion caused by the cracking of long hydrocarbon chains during the refining process

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ooh oooh, I know. It's an explosion caused by the cracking of long hydrocarbon chains during the refining process

I thought a Crack Up Boom was some kind of music/drugs gathering for the younger generation.

Am I so out of touch? :unsure:

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yes, thats the one, japan was a debt deflation.

Problem -

Credit deflation last time was deliberate policy to claim power over us all by the banker class.

What's this one about then, do you think?

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yes, thats the one, japan was a debt deflation.

then in your opinion, what is the difference between the two experiences (the great depression in America, and Japan in the 1990's)?

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