The Economy: Why it feels even worse

[bad hammy]

An interesting take from the folks at Money magazine (their bottom line: because it is): http://money.cnn.com/galleries/2009/new ... index.html

[mcgato]

I think their housing price slide is seriously wrong. When the housing bubble was forming, they would have said that would be a 10 for the economy. Umm, bubbles are bad. Now housing prices are getting back toward historic norms, and they say that is bad. I'm currently renting and have no desire to buy a place until I think that prices are reasonable. That is probably over a year away. Yes, housing price declines are bad for people who bought at the bubble prices, but not for the people who saw the bubble for what it was.

I can't really argue with their other slides though.

[Halfmiler2]

One thing they somewhat ignore: inflation. People forget how bad double-digit inflation was in 1980. Mortgages were over 20%. Inflation isn't too bad right now but may be a major problem later because of the way the Fed is pumping up the supply of money.

[Pego]

One thing they somewhat ignore: inflation. People forget how bad double-digit inflation was in 1980. Mortgages were over 20%. Inflation isn't too bad right now but may be a major problem later because of the way the Fed is pumping up the supply of money.

What I read in the papers right now indicates that deflation is currently a bigger worry for the economists than the inflation.

[ed gee]

an exception...

http://www.spiegel.de/international/ger ... 86,00.html

Berlin's Poverty Protects It from Downturn

By Sally McGrane

Recession? What recession? From Berlin, it's been hard to tell that there is a global economic downturn. A lack of industry and years of high unemployment mean that Germany's capital can't sink much further.

[Halfmiler2]

One thing they somewhat ignore: inflation. People forget how bad double-digit inflation was in 1980. Mortgages were over 20%. Inflation isn't too bad right now but may be a major problem later because of the way the Fed is pumping up the supply of money.

What I read in the papers right now indicates that deflation is currently a bigger worry for the economists than the inflation.

We weren't saying that last summer when oil hit $147 a barrel. Keep inflating the money supply and there will eventually be a major problem.