> > The expectation of deflation is deeply rooted in regular folks. Everyone is waiting to spend on large items, just not right now. > And this is exactly why s

> > The expectation of deflation is deeply rooted in regular folks. Everyone is waiting to spend on large items, just not right now. > And this is exactly why some inflation (caused by QE and a falling yen) would be a good thing - delays in consumer spending are a classic pitfall of deflation. Waiting until house prices fall isn't a sign of deflation - it's a sign of overpriced housing. Especially compared with the rent yields, vs. rent yields elsewhere in the world (grandparent compared them to Seattle). And it's definitely a good thing - I'm part of the millennial generation, and one of our main issues is that we simply don't have the money to buy property (even to live in), because older people have more money saved up, so they can bid more, hence a bubble (this is what happened in Europe, I assume it's similar in Japan).