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alstry (< 20)

Price Deflation Accellerating



January 07, 2009 – Comments (7)

Retailers, having just struggled through one of the worst holiday shopping seasons in recent memory, are now trying to share the pain with their landlords.

Many stores are pushing to negotiate lower rents, warning that they mightn't be able to make it unless their costs are cut. Those in stronger positions are finding that the market's turmoil has provided them clout to haggle for lower lease rates.

The above from today's WSJ....

Wages crashing, house prices crashing, land values crashing, commercial building values crashing, stock prices crashing, now rents crashing........its just one big 50% off sale......and some people are still squawking about price inflation????  How hard or big must the 2X4 be before they see the light????

Let's see how low prices can go?????

7 Comments – Post Your Own

#1) On January 07, 2009 at 3:26 PM, EggplantWizard (82.13) wrote:

It's pretty simple really, I, for one, expect some modest price deflation in many areas followed by relatively significant inflation.

First you have deflation as a result of credit contraction, then central bank liquidity measures cause high inflation, but we're still in the deflationary part of the equation.

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#2) On January 07, 2009 at 4:46 PM, FleaBagger (27.50) wrote:

You can't reason with alstry, Egg. By the way, did you ever see the movie "Big Trouble in Little China"? That's a great movie.

Alstry - don't come crying to us when your favorite foods cost 4x what they did in 2008.

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#3) On January 07, 2009 at 5:03 PM, MikeMark (28.91) wrote:

I'm enjoying it! In deflation, those with the most popular form of money get a price reduction benefit. If you have real savings in US$ (or in gold) you are a happy camper.

As far as the rest goes, my ownings haven't changed. What has changed is the measurment system (in US$). It's all fluff that my net worth has been reduced. I still have what I need and ways to accumulate more to help my growing family. 

As far as high inflation coming, get ready! It's on the way, but probably after 2009 (or 2010...)

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#4) On January 07, 2009 at 5:24 PM, alstry (< 20) wrote:

EMC also said it would cut 2,400 jobs

IT, Finance, Airlines, Autos, Construction, Retail, Restaurants, Government, Manufacturing, Healthcare ....all cutting and its just beginning.......

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#5) On January 07, 2009 at 5:46 PM, motleyanimal (35.55) wrote:

Don't worry. Obama is going to throw a virgin in the volcano and the gods will be angry no more.

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#6) On January 07, 2009 at 7:29 PM, mrindependent (33.79) wrote:

Motleyanimal gets the award for best comment.  Thanks for the laugh.

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#7) On January 08, 2009 at 5:18 AM, saunafool (< 20) wrote:

Hard to find a virgin these days...

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