8.24.2010

Deflation: the neutron bomb for balance sheets

Barron's:
That's the thing about deflation; it's like a neutron bomb for corporate, public-sector and consumer balance sheets. Asset values and returns get decimated while liabilities remain standing. Except that falling interest rates make those future liabilities more onerous, requiring more belt-tightening, which only exacerbates the deflation.

You gonna let that happen, Zimbabwe Ben? P*ssy!

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Exodus! Movement of Jah people!

 Joe Rogan is yet another multimillionaire fleeing California’s insanity. Who’s going to be left to pay the bills?