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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: mishedlo who wrote (34607)6/29/2005 11:41:05 AM
From: Wyätt GwyönRead Replies (2) of 306849
 
he difference is wages.
in the 70's and 80's we had real wage growth.


what you ignore is the housing bubble is the new "wage growth". in fact, housing "wealth" extraction more than makes up for the real wage growth of past decades. because you think housing inflation only affects new buyers, you ignore all the current owners who use the bubble to prop up their earned income. the effective "bubble income" is growing much faster than wage growth of the 70s. the housing bubble is helicopter money, the most blatant kind of inflation there is.
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