This Week on Bear radio: Kit Kitredge shows the way with deflationary frugality

In this episode we discuss how changing consumer preferences, and product substitution play a key role in the deflationary process. Already we see people downsizing their expectations, taking in boarders to their homes, and switching to lower priced substitutes for all kinds of things. It’s starting to look at lot like the Kit Kitredge movie, set in the 1930s. We also talk about how surprising it is to see how long the process of de-leveraging and mal-investment purge is taking.