The Deflation Threat

"We believe the greater threat is the present asset price deflation. Houses, buildings and stocks are not inflating at all. Treasury bill yields have collapsed, long bond yields have fallen and risk spreads on a variety of assets, from GSE's to commercial mortgages, have widened to near Bear Stearns panic levels. These are all strong signs of deflation, not inflation."
RealClearMarkets - Articles - It's Deflation, Stupid