Here comes the deflation...
Consumer prices post biggest monthly drop on record. Gobnmint numbers are here, but, of course, they don't measure stuff the way it used to be measured, so you can't make that claim on an apples to apples basis. Still, prices are dropping, though year over year, we're still paying more for stuff.
Nothing like a worldwide financial panic to reduce demand, and bring down prices, I guess. Does this work itself into a self-feeding cycle and start a depression?
A couple of weeks ago, I would not have entertained that thought for long, but given Paulson's evident panic and his acknowledgement that he has no idea what he's doing, and given Bernanke's utter impotence, I think it's something we ought to consider.
So, is now really the time to let the automakers plow into the deck?