Well, well, well...deflation is not good after all. Seems I've debated a few good men over this very issue. Well, I'll just show you a bit of the article and post a link so you can see for yourselves...that deflation is not good. It's not a good sign and it's not good for the economy. "Everything is on sale. And that's not a good thing. Consumer prices in October fell at the fastest pace in more than 60 years, sucked down by the rapidly deteriorating economy. The prices of oil, food, cars, clothing and electronics have all plunged. Home prices continue to swoon and so do stock prices. As the early reports from the holiday shopping season suggest, the nationwide fire sale might seem like a boon for consumers. But it's increasing the risk that the economy could become mired in a dangerous deflationary spiral â€” a widespread, sustained reduction in prices. That's something that hasn't happened here since the Great Depression." Deflation: Bargains abound, which could be a problem - USATODAY.com Another note regarding home prices..... "Home prices need to drop to affordable levels, and they will regardless of how much money Congress wastes trying to stop prices from falling."