|
Deflation naturally follows over-investment and debt bubbles, it's just a natural part of the economic cycle, natural like sunshine and rain, it's happened at least 5 times in our countries history. This situation is like snow in Miami, it's been so long since anyone has seen snow in Miami that they've decided to freak out and crash some cars, when what they probably should do is just calm down and try not to make things even worse by over-reacting.
Yes, it's going to be hard on some people, but it's always hard on some people. What makes indebted borrowers worth more to us than people who have paid their homes off and have been saving money for the past decade, people who are still solvent ? Why is it okay to take a saver's money and use it to bail out troubled borrowers, or to harm successful banks in favor of failing ones ? Why must we retain the status quo simply because it is the status quo ? Change is good, embrace it, go with it, let it happen. It was an unsustainable bubble, stop trying to sustain it.
__________________
What are you pretending not to know ?
|