Global concern about inflation, which was widespread just a few months ago, has given way to worries about an opposite and potentially more dangerous problem: deflation. Full Story »
Posted by Dan Kennedy
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Solid, workmanlike story that shows why falling prices, far from being a good development, could actually lead to a dangerous deflationary spiral.
This is a lucid, plain-terms explanation of how widespread deflation could hurt consumers. The story would have been made richer if the reporter had left his desk to go find an example of where this is happening already -- it seems even retail store cutting prices for holiday shopping would have worked fine.
The reporter does an effective job of explaining deflation and why the current drop in the Consumer Price Index matters.
Really an informative primer about another disturbing aspect of the ever deepening recession. What got my attention was the phrase: "Consumer Price Index (CPI) took a rare nose dive, plunging by 1 percent in October, the Labor Department said Wednesday. That's the largest fall in a single month since 1938. "
The article finished with assurances that the global deflation is temporary and would probably be over by 2010. But given the state of the global ... More »
The story clearly shows the accepted wisdom that economic growth is good, deflation bad and shows how hard everyone is working to get us back into growth mode.
Defation, as painful as it may be, lowers our footprint on the planet. The deflation we are experiencing and will experience, even if we match the ... More »
While deflation may be a problem in theshort term, I believe market correction will fix this problem. With people selling and flipping houses at two ... More »
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