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The era of deflation, bank failures, real estate collapse, higher taxes and financial meltdown are you ready?
Karen Zuba
Mar. 14, 2007
A new era has started. It is the era of deflation, bank failures, real estate collapse, higher taxes and financial meltdown. It will need skill and experience to handle this new era of deflation. The mortgage defaults and foreclosures are early signals confirming the deflationary new trend. The deflation is created from excessive borrowing and hyperinflation in some sectors.
Bank failures are common in the days of deflation. The FDIC who is looked upon as the savior can take care of the three of the major banks. After that FDIC itself is insolvent.
Because of lower tax revenue and increased pressure on spending by the government, the taxes normally shoot up in the days inflation.
A financial meltdown is possible in the current environment.
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