Thursday, October 29, 2009
As with inflation, deflation has its winners and losers
Here are some of the people who misjudged the housing market, their job prospects, the chance of a serious financial problem, or some combination of these three reasons or a myriad of other problems which could cause them difficulty in keeping up with their mortgages. I am not one to automatically feel sorry for people who find themselves in financial difficulty, I want to know what happened. But what we should realize is that the Fed's easy money policy distorted prices and caused a lot of good people to misjudged their financial situation. These are the wages of a monetary policy run amok.