Deflation: A persistent decrease in the level of (consumer) prices or a persistent increase in the purchasing power of money because of a reduction in available currency and credit
Need an example?
Back in 2005, during the boom, the company sold a used hydraulic dirt excavator for $309,000. That same excavator changed hands Tuesday for just $50,000
That would be in San Diego, CA.
This will have an impact on Deere, CNH, JLG, Gehl, and Cat, folks.
By the way--there are a lot of UAW workers in the above-named companies. Expect to hear "bailout" from them in the next 12 months.
HT: Calculated Risk
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