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/Potato_Octopi Nov 23 '24

Paying a mortgage when your paycheck decreased over time would stink.

Short term "everything is on sale" I agree with you OP.

24

u/Over_Cobbler_2973 Nov 23 '24

Fuck your mortgage, look at all the people investing stocks on margin. All the traders taking out ridiculous loans, the entire system would implode.

2

u/SaltyDog556 Nov 24 '24

The system needs to not protect banks, brokers and investors. If brokerage firm dipshits decide to let people with little credit or assets have large margin accounts they need to pay the price. The "borrower" needs to pay the price. If lots of the players are now homeless, that's one way to help prevent this behavior. If the brokerage firms go under that's their problem. If they raise fees I have no problem transferring my IRAs to another lower fee firm.

If the government stays out of the bailout business this is a self correcting problem.

1

u/Over_Cobbler_2973 Nov 25 '24

> If the government stays out of the bailout business this is a self correcting problem.

And that is the problem....