BigBrownSanta
Well-Known Member
I'm hesitant to bring it up, but a word I have been seeing more and more on the financial news websites is deflation. Basically that means that goods become cheaper and cheaper, but no one is buying.
That is a cycle we do not want to see. IMO, if GM fails, that may be the ripple that starts a domino effect.
Dannyboy is right, people are not spending money, companies will start cutting prices, people will continue to postpone or stop purchases, companies will lay off more employees, people see or fear the layoffs and will still not spend money, and the cycle starts over again. It's a hard cycle to get out of.
That is a cycle we do not want to see. IMO, if GM fails, that may be the ripple that starts a domino effect.
Dannyboy is right, people are not spending money, companies will start cutting prices, people will continue to postpone or stop purchases, companies will lay off more employees, people see or fear the layoffs and will still not spend money, and the cycle starts over again. It's a hard cycle to get out of.