Posted on
September 18, 2009
at
3:30 am
What is Debt Deflation?It is a situation in which the collateral (usually a home) that was used to secure a loan decreases in value.
Posted on
September 18, 2009
at
3:34 am
What is debt deflation?Okay here's a scenario, a consumer was able to purchase a home by taking out a mortgage. That loan wouldn't have been possible without collateral, the home was used as collateral. So if the consumer defaults on payments to the lender, the home would be repossessed. What if the potential selling price of the home decreased in value while the consumer was still making payments to the bank?
Posted on
September 18, 2009
at
3:56 am
The consumer would be in the middle of a debt deflation scenario.And so? I mean what happens then?
Posted on
September 18, 2009
at
4:16 am
The consumer still pays for what he owes.
Posted on
October 1, 2009
at
3:20 am
how possible is a debt deflation
Posted on
March 4, 2010
at
3:17 am
How possible is a debt deflation? - I'm not sure but the real estate market is really moody don't you think? When the market value of a place drops - thenso are the properties - question though ... so the consumer's debt amountdeflates as well?
Posted on
May 20, 2010
at
5:18 am
Have you tried at wikipedia?
