This past Sunday I blogged about Nouriel Roubini’s prediction that the US economy would face deflation in the next 6 months.
Today, cnnmomney.com has also published this article in which they report that deflation is becoming more and more of a concern for central bankers.
In terms of economic health deflation is a bad sign. In terms of mortgage rates the expectation of deflation could help mortgage rates get very low. That’s why I am hoping that expectations for deflation grow so rates can move lower but that we never actually reach that point.