Roubini Pt. 1
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@mijadedios He definately is a macroeconomic genius,but you should know that deflation does not cause the value of your money to decrease, that is what inflation does. Deflation actually increases the buying power of your money as the price level falls, so you will see the CPI decrease in deflationary times. This is not necessarily a good thing because it causes people and firms to defer investment and consumption since they can buy more later on, resulting in economic stagnation.
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He's a Macroeconomic genius..Deflation is worse than inflation...Deflation would mean our money will be worthless. A new Currency will have to be introduced. If Roubini is getting paid I'm sure he's not buying dollars!
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The other loans are option ARMS which are due to reset to higher rates in 09. Some of those loans are already being defaulted on.
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This our doom.
fillosofert 3 years ago 4
Ressesion!?!?!?
DEPRESSION my friend.
odin422 3 years ago 2