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re: Serious Damage Done to Precious Metal

Posted on 4/13/13 at 11:29 pm to
Posted by kingbob
Sorrento, LA
Member since Nov 2010
67196 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 OFWHAP
Member since Sep 2007
5416 posts
Posted on 4/13/13 at 11:32 pm to
quote:

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).


But if I anticipate that the car will be even cheaper if I only wait a little longer, then I'll keep waiting. If you have any kind of debt, the dollar value of your debt will remain the same in a deflationary period, so you will have to pay back your debt with a decreased income.
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