Bailout Bubble

With all these bailouts and the rise in gas prices earlier this year, I was really worried about inflation...mostly because inflation would hurt me personally. Inflation obviously hurts everyone, but it particularly hurts those with fairly low fixed or salary style income. In my job, I can't get more hours and earn more money.

However, rather than inflation, we're seeing deflation right now. Explained here:

One thing to keep in mind about all of those dollars being created out of thin air by the Fed: This volume of this new “money” pales in comparison to the amount of wealth that has been destroyed over the past year, particularly since this past summer. There are fewer dollars chasing after goods, hence we are seeing deflation. Housing, energy, commodities… it’s all declining as wealth is evaporating. Things that don’t decline in price, like health care and education are heavily supported/subsidized/controlled by various governments. But these too will eventually be hit by deflation.

So I suppose, I should be cheerful about deflation, especially if I was previously worried about inflation. And sure, I like paying less for gas and if I hadn't gone to grad school, maybe I'd be able to think about buying a house right now.