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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: mishedlo who wrote (56401)3/21/2006 5:32:19 PM
From: TimbaBear  Read Replies (1) of 110194
 
Mish

I'm not sure whether you are purposely being dense or what.

A new car is NOT a new car.
IF a new car was a new car then everyone would buy the cheapest car they could get.

If one bought the cheapest new Ford offered by a dealer today and bought the cheapest new Ford offered by a dealer 30 years ago and if we assume the same level of bargaining skills, what one would be getting is comparable enough to measure the change in the price of a new Ford. No hedonics, no nonsense. Keep the value of the Dollar constant and see what the comparison is.

You keep trying to compare Fords to Hyundais to Jaguars and saying that buying the cheapest of those would give you the least amount of inflation OR you try to say that because the more recent new car has some bells and whistles the 30 year ago new car didn't have that somehow we have to adjust downward today's new car price so that we can compare a car we can't buy for that money today with a car we could have bought for the money 30 years ago and this makes sense to you.

Hedonic adjustments are a flawed paradigm, made up by academics and used by politicians to pound sand up the posteriors of the gullible.

If I buy the cheapest standardly optioned new Ford today, I still get 4 wheel motorized transportation, no hedonics can change that and I can't buy today's car using cash and hedonics.

Timba
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