On 12/09/2010 07:08 AM, Pete Theisen wrote:
> Hi Everybody.
>
> Cute cartoon pigs discuss the Fed policies.
>
> http://www.wallstreetwindow.com/post/quantitative-easing-explained
Under Deflation the prices of goods and services go down, so I ask:
1) Have the prices of houses and other real estate gone down?
2) Have the prices for stocks and bonds gone down, along with the
value of most investment portfolios and 401K retirement plans?
3) Have the salaries and wages paid to most American's, including
the unemployed, gone down?
4) Have the interest yields on bonds and notes gone down?
Deflation occurred during the great depression, and contrary to what the
cute video implies, deflation is real and vary dangerous.
During the great depression of 1933, deflation lead to a 25% or greater
unemployment rate, failures throughout the banking systems galore, the
crash of the stock market, that took decades to fully recover, and a
general shutdown in the economy, both in spirit and in activity. These
conditions, including fear about a steadily declining economic, cut down
the demand for good and services, which created a downward spiral into
anarchy, (eg an uncivilized mentality of every man for himself).
Regards,
LelandJ
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