Comments on: The Feds Are Trying to Avoid Deflation http://www.dailyreckoning.com.au/the-feds-are-trying-to-avoid-deflation/2008/12/10/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 10:39:45 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Greego http://www.dailyreckoning.com.au/the-feds-are-trying-to-avoid-deflation/2008/12/10/comment-page-1/#comment-56853 Greego Fri, 12 Dec 2008 12:35:24 +0000 http://www.dailyreckoning.com.au/?p=4595#comment-56853 "But deflation can be scary. Buyers assume everything will be cheaper in the future, so they wait for bargains." Hmm... that would explain why no-one ever buys a new mobile phone or computer, right? "But deflation can be scary. Buyers assume everything will be cheaper in the future, so they wait for bargains."

Hmm... that would explain why no-one ever buys a new mobile phone or computer, right?

]]> By: Jason http://www.dailyreckoning.com.au/the-feds-are-trying-to-avoid-deflation/2008/12/10/comment-page-1/#comment-56534 Jason Wed, 10 Dec 2008 18:19:16 +0000 http://www.dailyreckoning.com.au/?p=4595#comment-56534 Federal Reserve Chairman Ben Bernanke and his colleagues are clearly more concerned with the risk of a deflationary spiral than with inflation right now. But deflation can be scary. Buyers assume everything will be cheaper in the future, so they wait for bargains. If no one is buying, factories curb production. Workers lose their jobs and shops close. http://nomedals.blogspot.com Federal Reserve Chairman Ben Bernanke and his colleagues are clearly more concerned with the risk of a deflationary spiral than with inflation right now. But deflation can be scary. Buyers assume everything will be cheaper in the future, so they wait for bargains. If no one is buying, factories curb production. Workers lose their jobs and shops close.

http://nomedals.blogspot.com

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