Comments on: Deflation pressure not just from housing Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 By: yr2009 Fri, 09 Apr 2010 19:18:22 +0000 Can one type of stimulus or another change anything for real, and save the economy?
So far, have things really improved in the real-world US, or is it just investors who are more upbeat?

By: Woltmann Fri, 09 Apr 2010 13:13:35 +0000 Contrary to anything the analysts try to spin at me, as a consumer, price deflation is good for me personally and in this market I know I just have to wait a little while for the price of most things I want to go down, sometimes considerably. Only a fool would look at things obversely. How many markets is this great stimulus program going to try to prop up artificially? The business-owned mindless cretins in US Congress need to quit perpetuating the price myths being lobbied at them so vehemently by their benefactors and let markets determine their own price levels.

By: jscott418 Fri, 09 Apr 2010 11:58:54 +0000 I think the problems with America started long before the housing bubble. Over extended American’s who continued to spend rather then save has put them in a bind.
The fact that the recession happened this severely should be of no surprise to anyone.
You cannot continue to run a economy on people just creating more personal debt.
Eventually it will collapse and so will the economy and jobs. All consumer debt should be figured on total real income. People should live within their means and yet that would result in a weaker economy. Everyone knows it and we just do not want to accept it. The trouble is that our desire for so many products has put retail manufactures in a highly competitive market. We want to buy so many things that price drove almost all retail markets. Unfortunately publicly traded companies ended up moving a lot of jobs to other countries with cheaper labor simply to try and keep profits up. The unfortunate thing is that for our recovery to take off consumers will have to go back to taking on more debt. But if their financial situation does not improve that is not going to happen. Even if it does the jobs created will be in other countries and not here.

By: Samdog_07 Fri, 09 Apr 2010 02:44:13 +0000 Yes, Mr. Saft, I believe you are correct–and it can be summed up in a phrase straight out of Econ 101: “elasticity of demand.” Pull out housing and oil, factor in some G, and things still look pretty bleak in many—if not most—neighborhoods.

That old consumer base is G-O-N-E … and I’d be willing to bet (what little money I still have left) that it ain’t coming back—anytime soon, that is.

It appears that virtually no one anticipated how incredibly elastic consumers’ demand would be in a time of financial crisis. We did see a hint of it during the spring/summer of ’08, when we experienced the artificial run up in fuel prices. It was quite amusing–and totally unsustainable, with the collapse being driven by consumers who stayed put rather than pay $3.25 for a gallon of gas.

Consumers collectively aren’t paying one penny more for anything, though they can still be moved by bargains. And, yes, there still are pockets of wealth around– they just aren’t very deep nowadays ….

By: Ghandiolfini Thu, 08 Apr 2010 19:29:51 +0000 Oil should be linked to equalisation reserves ?

So you are talking about luxury goods and services.

We have a similar index here, but I always wonder, this housing component, is it capital appreciation/depreciation, interest > <, rent ? Or is it just a buzz word, like the ‘Invisible Hand’, pushing down, that everybody uses, but don’t really know what it means ? Economic existentialism ?