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  #1  
Old 08-23-2010, 04:37 PM
Got Goldies Got Goldies is offline
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Default Theft by deflation

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Deflation is generally regarded negatively, as it causes a transfer of wealth from borrowers and holders of illiquid assets, to the benefit of savers and of holders of liquid assets and currency. In this sense it is the opposite of inflation, which is similar to taxing currency holders and lenders (savers) and using the proceeds to subsidize borrowers.

http://en.wikipedia.org/wiki/Deflation

You should see the kind of home you can get in vegas for 90K. It is a 2 story, 3bd/3ba. And its 1998 or newer.

Don't let the savers rob you blind. Get cash. I might buy another one.
  #2  
Old 08-23-2010, 05:19 PM
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How is that theft? If it was real deflation and not just deflation of the housing market you would be able to sell that house and buy the same amount of products you could with the money you used to buy the house. Deflation only really hurts debtors from a value of money perspective.
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Old 08-23-2010, 05:37 PM
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Originally Posted by ryanvms View Post
How is that theft? If it was real deflation and not just deflation of the housing market you would be able to sell that house and buy the same amount of products you could with the money you used to buy the house. Deflation only really hurts debtors from a value of money perspective.
When price drops its a steal. I'm not joking either. Deflation has always hurt debtors. The market is saying 2 years from now it will be even more cheaper.
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Old 08-24-2010, 06:06 AM
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As often happens in these cases people use differing terminology.

From a pure economic perspective, inflation / deflation are solely a monetary event.

Rising prices does not equal inflation, likewise falling prices does not equal deflation.

However, price changes will be the result of expanding or contracting money supply.

With that being said, how is it theft?

If I buy a house for $100,000 and oil is $75 and bread is $2 loaf....then later I sell the house for $50,000....but oil only cost me $38 and bread $1....how is that theft?
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Old 08-24-2010, 09:19 AM
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It is value for YOUR money, more bang for your buck. Wealth preservation in PM's is the way to go. Nice last sentence FREETX. This is what its all about IMO
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Old 08-24-2010, 06:46 PM
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It is value for YOUR money, more bang for your buck. Wealth preservation in PM's is the way to go. Nice last sentence FREETX. This is what its all about IMO
The sheeple are used to hyperinflation because that is what they are told. They are told the banker will save them from their mortgages. I'll gooble her up right here and take the basket to go said the Banker wolf. Youhoo, Red Robin hood!
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Old 08-24-2010, 07:50 PM
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Originally Posted by Got Goldies View Post
The sheeple are used to hyperinflation because that is what they are told. They are told the banker will save them from their mortgages. I'll gooble her up right here and take the basket to go said the Banker wolf. Youhoo, Red Robin hood!
That is funny...
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  #8  
Old 08-24-2010, 08:28 PM
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Originally Posted by Got Goldies View Post
http://en.wikipedia.org/wiki/Deflation

You should see the kind of home you can get in vegas for 90K. It is a 2 story, 3bd/3ba. And its 1998 or newer.

Don't let the savers rob you blind. Get cash. I might buy another one.
Magic 8-Ball tells me that Vegas will be a ghost-town soon and RE will go to zero.

All the jobs rely on disposible income which is now vanishing - and there's no water. Bad combination.
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Old 08-24-2010, 09:03 PM
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Magic 8-Ball tells me that Vegas will be a ghost-town soon and RE will go to zero.

All the jobs rely on disposible income which is now vanishing - and there's no water. Bad combination.
I can guarantee that Vegas has its act together. The minute you drive in on the 15 freeway you'll see this place as the Emerald City. Who wouldn't want to live here? The bums are being squeezed out. Vegas paid for this because of luck deflation.
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Old 08-25-2010, 07:09 AM
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Originally Posted by Got Goldies View Post
I can guarantee that Vegas has its act together. The minute you drive in on the 15 freeway you'll see this place as the Emerald City. Who wouldn't want to live here? The bums are being squeezed out. Vegas paid for this because of luck deflation.
Somehow I hear "ole blue eyes" singing "Luck Be A Lady, tonight"!

(and dear GG, you should add a chart, why not?)
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