crash2006 Posted August 7, 2008 Share Posted August 7, 2008 (edited) 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 August 7, 2008 by crash2006 Quote Link to comment Share on other sites More sharing options...
29929BlackTuesday Posted August 7, 2008 Share Posted August 7, 2008 You're such a riddler... Was it Japan in the 90's? Quote Link to comment Share on other sites More sharing options...
Elizabeth Posted August 7, 2008 Share Posted August 7, 2008 Bump. I want to know. I had throught there had never been credit deflation. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted August 7, 2008 Share Posted August 7, 2008 Its quite hard to play monopoly round my place since the dog ate the £500 notes. Quote Link to comment Share on other sites More sharing options...
A.steve Posted August 7, 2008 Share Posted August 7, 2008 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. Quote Link to comment Share on other sites More sharing options...
robski Posted August 7, 2008 Share Posted August 7, 2008 ... which begs the question "exactly what do we consider to be money?" Light blue touch paper and stand clear! Quote Link to comment Share on other sites More sharing options...
Guest Daddy Bear Posted August 7, 2008 Share Posted August 7, 2008 (edited) 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 August 7, 2008 by Daddy Bear Quote Link to comment Share on other sites More sharing options...
domo Posted August 7, 2008 Share Posted August 7, 2008 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. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted August 7, 2008 Share Posted August 7, 2008 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. Quote Link to comment Share on other sites More sharing options...
kilroy Posted August 7, 2008 Share Posted August 7, 2008 NEVERNow 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 Quote Link to comment Share on other sites More sharing options...
crash2006 Posted August 7, 2008 Author Share Posted August 7, 2008 the USA in ~1930. yes, thats the one, japan was a debt deflation. Quote Link to comment Share on other sites More sharing options...
'Bart' Posted August 7, 2008 Share Posted August 7, 2008 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? Quote Link to comment Share on other sites More sharing options...
Injin Posted August 7, 2008 Share Posted August 7, 2008 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? Quote Link to comment Share on other sites More sharing options...
Mr Nice Posted August 8, 2008 Share Posted August 8, 2008 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)? Quote Link to comment Share on other sites More sharing options...
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