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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Wyätt Gwyön who wrote (34547)6/28/2005 11:09:51 AM
From: mishedloRead Replies (1) of 306849
 
this is the wrong way to look at it, imo. i think what you fail to grasp is that asset inflation is still inflation. Jim Grant pointed that out for years vis-a-vis the stock market in the 1990s (and lately w/r/t the RE bubble). in other words, inflation can be expressed not just directly in consumer goods but in assets. let me explain how i look at it from an MPT perspective. understand here that what i have is a basket of asset classes which in total are a "net worth", of which personal RE is a fixed percentage. you could say that i have an RE "budget" which is defined as a percentage of my net worth.

So when home prices crash will you call it deflation since you seem to be insistant that rising home prices equals inflation?

Do you want it both ways or only one?

Mish
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