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Can You Say Stagflation?

April 3rd, 2008 · No Comments Yet

A serious post with a funny video

Stagflation is a term from the 70s.  It is when we have inflation (higher prices) but do not have economic growth (higher wages). This is one of the worst possible economic scenarios. We could be headed that way now. 

Without the higher wages of economic growth we can’t pay the higher prices of inflation. If nobody buys anything then we have even less economic growth. It is not a good cycle to be in.  This article posted on AOL Bernanke Warns of Possible Recession talks about these opposing forces.

Bernanke said “a recession is possible” yet two other members of the Fed are still concerned about inflation. These competing forces could lead to stagflation. So what dos this mean to real estate? I figure tough times mean better real estate deals. Good economic times are good for sellers. Bad economic times are good for buyers.

If you want a more humorous look at Bernanke check out this video. It’s been around a while but if you haven’t seen it it is a hoot. It was created by the Columbia Business School

Happy investing and keep laughing,

Ned

Tags: Business and Finance · Humor

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