Wednesday, January 7, 2009

But who can really wait for the price of beer to drop?

Just saw this over at Minyanville.

Psychology of Deflation

Of course, all of this talk of economic stimulus is moot if the psychology of deflation has taken hold, a psychological state where dollars are saved in anticipation of ever lower prices. A state of mind kind of like, this:

""Forty to 50 percent [discounts] used to excite me," the 43-year-old writer said. "Now, I want at least 70 percent." Turner says she has taken advantage of 75 percent discounts on children's clothes in recent weeks and is willing to wait to get the same type of deals in the coming months."
"Stores Worry Holiday Sales May Be Permanent" - MSNBC

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