Tuesday, February 17, 2009

MarketWatch Special Report- The Spiral: A survival guide for the looming threat of deflation.

From MarketWatch:

Don't hope for discounts
If deflation sticks around, history shows it's bad news for almost everybody.

For stocks, it's a slaughter
A sustained period of deflation spells disaster for equities as slack demand eats into corporate sales.

Cautionary tale from Japan's turn
MarketWatch's Lisa Twaronite, formerly based in Tokyo, remembers tough times and silver linings.

Favorable for fixed income
Why bondholders like their chances for riding out a period of weakness in prices.

Where's the party?
Falling prices abound for now, but economists warn that inflation could rear its head before long.

Killing cows to rescue a market
Milk's plunging price has some dairy farmers scrambling to thin their herds. Stacey Delo reports.

$100 bills as toilet tissue?

Will efforts to stave off deflation result in hyperinflation? In an interview, economist John Williams advises hoarding gold and even Scotch to barter.