Deflation

John K. Taber jktaber at onramp.net
Thu Sep 17 04:25:15 PDT 1998


Thanks for all the help with deflation.

Somebody mentioned that bond holders might benefit from deflation. But if corporations are collapsing due to deflation, wouldn't many bonds become worthless?

I think that the most widely held "investment" is money market funds, which have taken the place of savings accounts. Wouldn't deflation cause the collapse of a lot of MMFs?

Fidelity's Cash Reserve for example holds a lot of CDs.



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