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

To: Mike Johnston who wrote (24761)	10/24/2004 12:17:18 AM
From: GraceZ	Respond to of 306849

On the sideline, why do statisticians at BLS use only an adjustment when quality of the product goes up to calculate inflation ? What about when quality drops by 50 %. Actually the very first place hedonic adjustments were used it was to account for what most call depreciation in homes and rental units.

To: Mike Johnston who wrote (24761)	10/24/2004 9:54:09 AM
From: Les H	Read Replies (1) \| Respond to of 306849

[quote]On the sideline, why do statisticians at BLS use only an adjustment when quality of the product goes up to calculate inflation ? What about when quality drops by 50 %.[/quote] Or when a smaller amount of the produce comes in the same size package for the same price, which is a common tactic with candies, cereals, foods in general, etc. Also, when the product falls in price or stays the same but the material is substituted with that of inferior quality, which is often the case with the apparel at the Walmarts and big box stores, and tends to have wear out faster.

To: Mike Johnston who wrote (24761)	10/24/2004 6:15:18 PM
From: X Y Zebra	Read Replies (1) \| Respond to of 306849

The golden rule is : never short EBAY and never short FNM (this socialist outfit will never go bust). EBAY: a true worldwide phenomenon and equalizer for the individual to become the CEO of his own corporation... the perfect tool to implement global Laissez Faire... ? apparently, no less than 69 million people make a living using ebay... FNM: financial engineering... is this the only weapon left against economic destruction from massive importation of jobs (blue and white collar) ? if so, how long will it last? how to protect oneself against the eventual collapse? at the very least, some even more interesting times, lie ahead... Regarding Bush: really scary write up in Barrons, they predict that Bush will pick Bernanke to replace Greenspan. LOL ! was that Barrons you were reading or the new Stephen King horror piece ? -gggg BernanKaput at the wheel... hmmm it makes me wish for the quote... "I would like to die like my grandfather, peacefully in his sleep, unlike his screaming passengers..." as for the CPI… I quit paying attention to the CPI some few years ago when they announced certain adjustments to it... I had CPI escalators in my leases... since then, I slowly started inserting the words "CPI or a minimum of 3% -whichever is higher", in the same paragraph to protect me against the non-inflation that has been in effect since then. A further comment on EBAY: It is amazing that brokers continue to have the high levels of equity for margin requirements when trading EBAY... on the other hand it is nice to see that premiums on options continue to be as high as they are... it makes selling covered calls all that more attractive... As the company grows and continues to conquer new borders, the company simply becomes a better investment... I am not saying that sound diversification and common sense measure should be used in unison with the above comment...