Comments on: Financial crisis not all bad news http://talkingtiger.org/2008/12/07/financial-crisis-not-all-bad-news/ Fri, 23 Jan 2009 23:18:06 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Jonathan Lange http://talkingtiger.org/2008/12/07/financial-crisis-not-all-bad-news/#comment-410 Jonathan Lange Sun, 07 Dec 2008 13:40:42 +0000 http://talkingtiger.org/?p=699#comment-410 Actually, one of the big threats with the current crisis is that it will trigger a deflationary spiral (i.e. when decreases in price lead to lower production, which in turn lead to lower wages and demand, which lead to further decreases in price -- thanks Wikipedia). And of course, to someone with a mortgage, there's not much difference between lower wages and higher interest rates. You are right though, there is always being a reason to be scared about money. Unless you are a sparrow, or a lily, or trust Jesus. Actually, one of the big threats with the current crisis is that it will trigger a deflationary spiral (i.e. when decreases in price lead to lower production, which in turn lead to lower wages and demand, which lead to further decreases in price — thanks Wikipedia).

And of course, to someone with a mortgage, there’s not much difference between lower wages and higher interest rates.

You are right though, there is always being a reason to be scared about money. Unless you are a sparrow, or a lily, or trust Jesus.

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