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To: flatsville who wrote (37385)	6/2/2000 12:15:00 PM
From: Jack of All Trades	Respond to of 42523

Also when he sells that house he will also have to pay capital gains on that INFLATION :>))

To: flatsville who wrote (37385)	6/2/2000 8:15:00 PM
From: BGR	Read Replies (1) \| Respond to of 42523

Because the home buyer is trying to acquire an asset (like an equity), which is a whole different game. And, acquiring the asset is hardly a requirement, as one can always lease the same house - which is a consumption, and which is not growing at a similar fast pace. Bottom line, acquiring any appreciating asset (after adjustment for inflation) is not consumption, and hence pretty much outside the domain of CPI, as the acquirer may have to pay an initial high price but will be rewarded from the appreciation in future. As far as COLA adjustments go, most recipients either already own their homes or have access to subsidized housing, so there is absolutely no sense is making their payments sensitive to home prices.