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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: BGR who wrote (62918)	6/21/1999 10:29:00 PM
From: Mama Bear	Read Replies (1) \| Respond to of 132070

"But, you cannot sell your rental agreement. " People sell leases every day. Barb

To: BGR who wrote (62918)	6/22/1999 9:27:00 AM
From: Freedom Fighter	Read Replies (3) \| Respond to of 132070

BGR, >>Also, rent increases may not track house prices exactly, just as dividends do not track equity price appreciations exactly.<< I essentially agree with everything you say. You may have expressed the point I was trying to make better than I was able to. If a lot of excess money flows into home purchases (or other assets) it is not necessarily captured by rents, leases, incomes etc... but the increased prices reflect something. Assume I am a renter that pays 2000/mo, earn 4000/mo and want to buy the house I am renting. It costs 200,000. If three years later I am paying 2100/mo, earning 4200/mo but the house costs 300,000 I have lost some purchasing power. There was 5% inflation according to wages and rents but 50% inflation according to home prices. This belongs somewhere. Should we also leave out classic paintings, autographs, jewelry, etc...? These can be assets/investments also, but price increases reflect something too. I'm not disputing your reasoning, I'm raising issues in my own thinking and the fact that every change that has been made to the CPI calcs seems to have worked towards lowering the reported inflation. I don't trust "Big Brother". (bg) If you borrowed money from me would you let me calculate the index that is primary in determining how much you will pay? (g) Wayne