Deflation - Why it is much scarier than inflation!

About mortgages - banks encourage now progressive rates (higher now, lower on the end). But if the difference (for the sake of argument) is +500 now and -500 in the end on the rate, with inflation that 500 is worth more now, than people would save in 30 years.

With deflation, whatever I earn now will keep it's value. I can borrow it or keep it under the pillow. It makes no difference to me, but banks could make them safe AND lend it to someone who wants to invest. Still not a bad thing to me.

"Why spend money on a house if that house is falling in value?"

Ok, if that is true, why didn't the high-tech economy sector crumbled already? Every year things are getting cheaper and cheaper. A computer bought now is worth around 2/3 of it's price in ~6-8 months, so why does anybody buy computers? Read more.....