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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (22871)	8/3/2004 6:11:57 PM
From: Elroy Jetson	Respond to of 306849

Rapidly increasing oil prices after the 1973 oil embargo reduced national income, but the Fed replaced the lost income with massive monetary injections. The price for this magic trick was a rapid decline in the value of the US Dollar and an accellerating inflation rate which resembled a shaky South American dictatorship. Home price in Los Angeles declined until 1975 and caught the monetary inflation wave after that point. However, that inflation in home prices didn't amount to anything if you take into account the decline in the value of the US Dollar. The median family income during that period declined sharply, even though the number of Fed Certificates they earned increased in number.