InvestorJabber: Gary Shilling on Deflation
Deflation’s Coming, Says Gary Shilling, And It’s Going To Clobber The Stock Market
Why is Gary still expecting deflation? Because consumers still have way too much debt, and this debt will take decades to work off. Also, consumers are saving money again, which means they aren’t spending it. Banks have plenty of cash and reserves, but the demand for money just isn’t there. And when consumers are strapped and credit is contracting, prices tend to fall.
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Check out what others are saying...[...] as investors turn bearish now heading the warnings of heavyweights such as A. Gary Shilling (see article), it appears time to reconsider recent history and how markets have performed under Doomsday-like [...]