LilBob

Impatient with Upcoming Recovery?

Unfortunately I think deflation is inevitable. We had an economy that was based on hype and false promises. Remember not too long ago when the New York Times reported that Investment bankers were complaining their biggest problem was that the government was requiring them to report asset valuations based on market value? In other words, they had to tell people how much money they really had, not how much money they would like to have.

In this country we're in a state of shock because we've lost our sense of what things cost. The "Low Price Revolution," has filled our discount stores and homes with tons of cheap imported goods while the cost of everything that matters: education, health-care, durable goods-has gone through the roof. Now many Americans are waking up to what is important and they aren't buying so much of the cheap plastic crap. Higher national savings with a mind-set of focusing on those things that have become more expensive should be a good thing, but with an economy that's based so heavily on cheap plastic crap it's perceived as a nightmare.