Monthly Archives: December 2023

As mentioned previously, the transition from inflation to deflation often occurs in an instance. It’s the moment of panic when people, acting in herd-like concert, realize that their prior beliefs about a market are no longer valid. This is what … Continue reading →

So far, we’ve covered deflation and how, unlike inflation, it occurs in spurts. We went on to see that deflation recurs in cycles throughout history, and explored some of the characteristics these cycles share. Finally, we recognized that the transition … Continue reading →

What exactly is a panic anyway? To understand one, let’s examine the Panic of October, 2008. In broad strokes, here’s what I believe happened: Mortgages that had been packaged and sold start to default in large numbers in 2007, leading … Continue reading →

In 1926, three years before the Great Depression, a Russian economist wrote a paper titled “Long Waves in Economic Life.” He was one of the first to observe that capitalistic economies undergo decades-long cycles of inflation, followed by deflation. The … Continue reading →

We all know inflation. We’ve been living with it for as long as anyone can remember. Slightly higher wages, paying for slightly higher expenses, demanding slightly higher wages. Those that did better, had wages growing faster than expenses. Those that … Continue reading →