Recessions are inevitable, like death and taxes, but the chances of deflation are slim, barring an exogenous event (e.g., Lehman). We basically had that last year, but the fed stepped in with the btfp and stopped the bleeding. We could just have a long period of slow economic growth where incomes eventually carch up to prices.

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This is why it’s sticky…. They want to thread the needle with this, but they’re going to create a longer period of poor economic performance with this dovish policy. If people believe in inflation At the pump/grocery, they’re going to believe it’s real. No matter what the fed says. We watch the fed, normies don’t. Not really. So if they don’t get this inflation issue tamed, people aren’t going to believe the economy is better so it won’t be.

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> If these prices are here to stay, people will continue to believe “inflation is getting out of control” and budget accordingly. You're right. People see that prices of necessities have gone up a lot and think of inflation. What people may not realize is that if prices are the same a year from now, prices will still be high, but inflation will be 0. >prices deflate because people can either NOT spend, waiting for cheaper prices, or NOT spend because they feel monetary scarcity. I’m both cases its effect on the economy is the same The US economy is largely based on consumption. If people slow their rate of consumption, so goes the economy regardless of the reason. The last retail sales print was bad. We'll see if that trend continues.

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You’re right, I misspoke. They want stable prices. But do you think that’s too removed from the average consumer mindset? If these prices are here to stay, people will continue to believe “inflation is getting out of control” and budget accordingly. The point about the deflationary spiral is a good one and clearly highlights my ignorance about economic terminology. But that being said, the deflationary spiral “effect” is equivalent in my example as that of the proper usage— prices deflate because people can either NOT spend, waiting for cheaper prices, or NOT spend because they feel monetary scarcity. I’m both cases its effect on the economy is the same, and my original questions still stand…

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>Even if Fed policy works, and prices for goods come down The fed doesn't want prices to come down (i.e., deflation). The fed wants "stable prices" (i.e., disinflation). The fed wants the rate of inflation to come down to 2%. >Can this mindset become a self-fulfilling prophecy with respect to the recession? Could this lead to some sort of deflationary spiral? Have there been examples of bolstered consumer spending without having some meaningful deflation on essential goods? The [deflationary spiral](https://www.investopedia.com/terms/d/deflationary-spiral.asp) mindset is where prices are deflating, and people see that, but rather than buy at cheaper prices, they wait for even cheaper prices, and this loop repeats as prices continue to fall.

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A rebound with the dilution we know now ?

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This is a prime example of; Give us a picture that when uploaded to ai, that ai’s best photo to text answer is “the fucking moneys got to come from somewhere”

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Na, I just like their product. Decent tendies with incredible macros. Since their new CEO took over late March they've streamlined their supply chain and brought in new senior management. Only holding a small position of 2500 shares @ 0.34 avg so I'm holding til 0 or the moon.

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Yeah, same here, invested in SP500 before the all time high while it was falling, I figured it was going to skyrocket shortly, I was right but I was a couple of days early. Stop loss fucked me up and I ended up loosing half of the capital. It took me almost a year, but now I’m back to my original amount and a bit more.

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This has to be a photoshop. Please tell me it’s a photoshop.

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