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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: TimbaBear who wrote (56422)3/21/2006 8:24:29 PM
From: mishedlo  Read Replies (1) of 110194
 
The correct comparison in this case is not your dad's house to my house or your house. The correct comparison is your dad's house now versus what he paid for it. I'm sure there is still a market for 700 SqFt houses, albeit a smaller market now then back then. The difference in market appeal is known as functional obsolescence but the Market would account for that without any brainiac trying to add hedonic "improvement" to the equation.

Sheeesh Timba - will you make up your mind?
You were the one trying to compare prices of Ford's years ago to today. Then you keep acting as if I said it.

Once again let me quote you exactly:
"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."

I am trying hard to refute your nonsense then you act as if I said something that YOU said.

As for houses one MUST, to be sensible, take into account the type of windows, fixtures, and features. In other words quality differences. Those quality differences are (or can be real). In other words, similar sized homes in the same neighborhood are not necessarily the same.

NOW after tons of nonsense it seems you want to compare a chicken to a chicken or the EXACT same house from 10 years ago to the EXACT same house today. The only way to do that is to check actual resale values of the EXACT same house (or EXACT SAME Model with the exact same features) over time. That indeed is a valid way to measure inflation and I never said otherwise.
You did say otherwise, which is what this argument was all about.

The problem of course (with cars is that models change and the exact same car from 10 years ago is not really available today). In fact, todays low end Hyundais and Toyotas have more features than some of the top end cars of 20 years ago. If one does not take those differences into consideration then one is not making a proper comparison. A car is not a car. and a house is not a house.

It seems you finally agree with me.

Mish

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