This is how we got into the DEPRESSION, agenda-pushers!!!
"If deflation arrives, it will mean savings and some profits" by John F. Wasik | December 9, 2008
Now that that the diagnosis of a recession has been confirmed, economists are losing sleep over the odds that we'll face a bout of deflation.
There are several kinds of deflation that keep global economy doctors up at night. The worst is an across-the-board body-slam drop in prices of all commodities, economic output, housing, wages, and securities last witnessed during the Great Depression. A less severe form is "stag-deflation," in which the economy doesn't grow, yet commodity prices fall. That's preferable to the ugly 1930s version and may be our present malaise.
A more desirable form of deflation is a decline in commodities prices and savings yields that lasts only for a few months. Deflation is encouraging if you have money to spend. Seeing gas prices dip and holiday bargains at department stores cheers the miser in all of us....
How do you like the insult, Amurkn? Yup, YOU are a MISER for not SPENDING MONEY you don't have and GOING INTO DEBT (banks again) this Xmas season!!
Should you be in the enviable position of having cash, a good credit rating, and looking to buy property, the deflation news is positive. Deflation generally translates into lower long-term borrowing costs. If you choose to finance or refinance during this deflationary time, keep in mind that credit standards are much tougher than they were a year ago.
That's why their is a liquidity crisis, right? So WTF are the banks doing with that bailout dough, other than stuffing it into their pockets?
Lenders will expect to see consistent proof of income, on-time payments on other accounts, and a FICO score well above 700. Request your credit file before you approach a lender to see if it's correct.
You will also need to downsize your expectations for savings yields. When the Fed cuts rates - its benchmark is 1 percent and may go lower - that means paltry returns on certificates of deposit, money-market funds, and other savings vehicles....
Translation: your investments, retirement, etc, is going to be taking another hit!
Keep in mind that the preceding article was from an agenda-pushing scitte sheet that said a depression would be a good idea; being poor is your fault; the financial crisis is the fault of American consumer; Boston business benefits from financial failings; financial failures are a good thing; that endless work and insecurity are a good thing; that these are the best of times; that this bear market is just like any other; that hunger is good business; and has already told us what the Grand Depression of 2009 will look like.
See you at the shit pit in the labor camp, Amurka! If we make it that far.
