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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: TimbaBear who wrote (56462)3/22/2006 11:49:34 AM
From: Chaka  Read Replies (2) of 110194
 
Timba,Mish,

I have been following this debate and both sides have some valid points. I think the problem of comparing a car from 1930s to a car now is that they are two different animals. If you define a car as just a 4-wheeled means of transportation, then you cannot compare a ford then with a ford now - you have to compare the cheapest car in 1930 with the cheapest equivalent-functionality car that can be built today (I assume that this would definitely be result in price deflation, though nobody would buy such a car, given the safety hazards).

I think that hedonics has some value though it is highly prone to being abused...
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