Wednesday, November 26, 2008

What is worse than deflation?

http://ftalphaville.ft.com/blog/2008/11/26/18733/contagious-deleveraging/

Debt deflation. With Banks usually the worse offenders cause they can high leverage.

Just like in 1930, it will be the economic fundamentals that give the best indication of where things are going. House prices continued their downward trend yesterday. High unemployment is not even yet a factor.


We are done with phase 1, sub prime crises, now entering a much worse phase, Global depression brought on by debt deflation.

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