Eric Balkan

Credit Crisis + Mortgage Mess = Deflation?

Very good article, but hard to reconcile deflation with the continued devaluation of the dollar that's fueling -- no pun intended -- big price rises in commodities. And as the Fed continues trying to bail out investors by lowering interest rates, those overseas holders of some $2T of Treasury paper are getting antsy. What we may have here is neither deflation nor inflation, but a reallocation of wealth.