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Old 01-14-2009, 06:25 AM   #3
VTGreg
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Join Date: Jun 2002
Location: Charlotte, NC
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I think a period of contraction is inevitable. The economy and consumer spending have been propped up by borrowing for so long that we just can't leverage ourselves anymore. We have fabricated much of our wealth.

I'm not really sure how you can have a contraction period without deflation. A question for those that know the markets far better than I do: Is it even possible to have contraction without deflation of some sort?
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