Anon 3:38 has it right, deflation and depression occurs when too much wealth is concentrated at the top. Too many people have not enough money to keep prices and assets up by purchasing services, thus “deflating” everything, even for the rich. The “system” desires equilibrium.

Not sure it will play out that way. The last great disruption aka the Great Depression wasn’t kind to the rich. They overplayed their hand then and got socked.

It may be the same now and the real opportunity may well be for governments to reassert themselves. Anyway, they will have to jump in and put the financial system back in shape.

I agree…and disagree. It is not “inevitable”‘ rather, it is highly more probable (and easy to do) that the rich will get richer.

Some people with modest means may become quite wealthy. They’ll hunker down on consumption, keep on working and saving the maximum possible while scanning around for opportunities, all systems fully activated, then pounce when ready.

Won’t be easy to pull off, but some will do it.

Its obvious to anyone with half a brain that the only people benefitting from the current environment are those with lots of capital. Either because they can protect it better by moving it to the best preservation instrument available or their standard of living is not affected one bit by a 40-50% drop in real value (Oh gosh, my 200 billion dollar portfolio is only worth 140 billion now!)

When real estate settles out, the vultures will fly in buy it cheaply and then rent it back to US at a nice little profit. How decent of them.

This wasn’t “orchestrated” per se, but it is HOW the system works (presently) and the rule makers know best how to navigate it.

BTW, this has become my favorite site.

Thanks for what you do Yves.

Greg