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To: Red Badger

Deflation is bad for those who carry debt. Mortgages, other notes secured by real assets, securities, Treasury notes.

Look at the worst of the housing bust with upside down valuations, unable to sell, foreclosures not worth the balance of the note remaining.

Spread that across the whole economy with no end in sight.

That’s deflation, the bad side of it. Companies would collapse due to lack of demand, bank failure would be unrelenting.


8 posted on 02/13/2013 9:13:46 AM PST by RegulatorCountry
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To: RegulatorCountry

I have a 30 year fixed rate mortgage, and I don’t plan on moving or selling until I die, so how would it affect me?..........


9 posted on 02/13/2013 9:21:16 AM PST by Red Badger (Lincoln freed the slaves. Obama just got them ALL back......................)
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