Started By
Message

re: Serious Damage Done to Precious Metal

Posted on 4/13/13 at 11:16 pm to
Posted by LSURussian
Member since Feb 2005
126966 posts
Posted on 4/13/13 at 11:16 pm to
quote:

Wouldn't deflation be a positive to most consumers

No, because unemployment increases in a deflationary spiral. Full time jobs are reduced to part time jobs. Banks slow lending because collateral values decline. Auto sales slow as buyers wait for prices to fall. Assets usually held for wealth generation purposes (commercial real estate, precious metals, stocks) decline in value.
Posted by kingbob
Sorrento, LA
Member since Nov 2010
67214 posts
Posted on 4/13/13 at 11:29 pm to
If prices are declining, wouldn't that spur spending on cars? If prices are low, most businesses should see an increase in business, which should offset the need to layoff workers. Stocks would decline in value, but in real dollars they would remain roughly the same as the differences in price are purely due to changing from inflation to deflation (their value remains the same relative to the market, only their price changes).
Posted by Meauxjeaux
98836 posts including my alters
Member since Jun 2005
40159 posts
Posted on 5/1/13 at 8:55 pm to
quote:

Full time jobs are reduced to part time jobs. Banks slow lending because collateral values decline. Auto sales slow as buyers wait for prices to fall. Assets usually held for wealth generation purposes (commercial real estate, precious metals, stocks) decline in value.


AKA, Obamacare burdened Obamaterm2.
first pageprev pagePage 1 of 1Next pagelast page
refresh

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram