Stearns County, Minnesota | I believe there is deflation in certain segments of the economy. The largest segment in deflation is homeownership and the commercial real estate values. The stock market is also not up to par in value. These two areas have caused the average citizen to lose a lot of wealth. For the average working citizen, most of his wealth was his equity in his home. When the home prices have dropped the way they have and the stock market has also dropped, the average citizen has seen his nest egg disappear. I have seen figures that indicate that 25% of the homeowners are "under water" on their mortgage, meaning they owe more on their mortgage than what their house is worth. So this disappearing wealth affects the buying habits of many people. |
Thought on deflation
