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Intel Corporation Message Board

  • silkysully9629 silkysully9629 Dec 30, 2002 10:58 PM Flag

    Life keeps runnin in cycles..........

    The economy cycles from deflation to inflation to what economists call disinflation (low inflation) and back to deflation in a long cycle that lasts roughly 70-80 years. The driving force behind the cycle is credit. In the 1920's the U.S. stock market reached a "bubble stage" after a long period of credit & economic expansion. Then came the market crash & the ensuing depression. Suddenly a whole generation of Americans were not inclined to borrow or lend money. They became savers, hoarding their hard-earned money in case bad times returned. Prosperity returned however, and successive generations were less & less conservative about credit & debt. Inflation peaked in 1980 and there after the economy entered a plateau period called disinflation, which is really just lower or slowly declining inflation. This is an ideal environment for the stock market. By the 1990's credit was the way to go for EVERYONE. A massive debt bubble that was 70 years in the making MUST now DEFLATE! No one individual or group or administration "caused" this to happen. But, happen it did and now the party is over and it's time to pay the band.

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