Tuesday, October 28, 2008

Stag-Deflation

I'll admit. I've never heard that word used before. Inflation, yes. Recession, yes. Stagflation, yes. Stag-deflation, no. From our favorite, very pessimistic, but usually right Nouriel Roubini: "The Coming Global Stag-Deflation".

I'm still not sure we're headed for deflation though. How can we be with the $10T debt and everyone promising to lower taxes? Oh, yea, the printing press.

Deflation rocks. As long as you have a job.

1 comment:

John said...

Great article. It seems we are already seeing some signs of deflation with Oil, wheat and home prices dropping. I think deflation could happen for a short period of time, but longer term, I don't see it.