Not exact matches
The sharp jump in
debt yields in tandem was mirrored by a rally in commodity prices, which suggests that investors are becoming less worried
about the risks of
deflation.
The question that I have at this point in the cycle is how low the Fed will get before they get scared
about inflation, and flatten out policy to see which effect is larger —
deflation from overvalued housing assets purchased with
debt, or inflation of goods and services prices.
In the mid-2000s, few thought
about the possibility of
debt deflation having a serious impact on the US economy.
I've been looking at data
about how
deflation can eat away equity and cash flow on leveraged properties and I'm currently considering liquidating some properties to free up cash that I could use to either pay off
debt in case of
deflation, and / or increase my portfolio in a down turn; laying low on buying right now.