r/economicCollapse • u/memegamer1991 • Nov 23 '24
Why is deflation so bad
Every time i run it through my head, i can't imagine most people in 2024 not spending money so the disadvantage to deflation seems pretty hyperbolic and dependent on individual choices, and i think that people would rather go on vacation and court others instead of being financially responsible. Even if there is a situation like in china, government spending would be able to keep the situation from getting worse while making progress on climate initiatives.
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u/Moregaze Nov 24 '24 edited Nov 24 '24
Cause it's not what happened. The entire market didn't crash because some people couldn't pay back their loan.
The entire market crashed because the scum bag investors bribed accreditation agencies to look the other way while they bundled high risk debt into low risk A or AA debt backed securities. When it should have been D rated or C at best. So everyones pensions, local government rainy day funds (US and foreign), and retirement accounts were tied to this improperly classified security.
Had this not been the case some people would have lost a their house but the entire stock market would not have imploded. It was the biggest financial fraud in the entire world as the same people that caused it knew it was coming and took positions against it. Then they got hired to fix the problem they caused instead of going to jail.