[tatsuke95]

>""Having your net worth halved" happens in the inflation scenario. Deflation increases your net worth."

Interesting. We've been in a positive inflation environment since I've been born, and my net worth has increased exponentially.

Deflation will increase the purchasing power of your money due to the fall in prices, but decrease the value of assets you own priced in that currency. Something people seem to be forgetting around here are that wages also fall during deflation, and that results in lower purchasing power and unemployment. Your "work" isn't worth as much anymore. You get paid less. Good deal!

What happened when the housing bubble collapsed and there was massive deflation in home prices? Did those people get wealthier? Did it become easier for other people to spend their dollars on homes at the new low prices? The answer is no and no.

[csense]

> Did it become easier for other people to spend their dollars on homes at the new low prices?

Why is the answer to this question "no"?