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Credit Deflation


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HOLA441
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HOLA445
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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HOLA448

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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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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