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

To: mishedlo who wrote (34607)	6/29/2005 11:41:05 AM
From: Wyätt Gwyön	Read Replies (2) \| Respond to of 306849

he difference is wages. in the 70's and 80's we had real wage growth. what you ignore is the housing bubble is the new "wage growth". in fact, housing "wealth" extraction more than makes up for the real wage growth of past decades. because you think housing inflation only affects new buyers, you ignore all the current owners who use the bubble to prop up their earned income. the effective "bubble income" is growing much faster than wage growth of the 70s. the housing bubble is helicopter money, the most blatant kind of inflation there is.

To: mishedlo who wrote (34607)	6/29/2005 1:14:57 PM
From: Mike Johnston	Read Replies (2) \| Respond to of 306849

It is not necessary to have wage growth in order to have inflation, just look at Argentina few years ago. High inflation with no wage growth is simply called a declining standard of living. This is what many people are dealing with right now. Wages are stagnant but the cost of living is going through the roof.

To: mishedlo who wrote (34607)	3/22/2006 7:07:03 PM
From: unrealistic_thoughts	Read Replies (2) \| Respond to of 306849

High inflation and no wage growth is called "STAGFLATION". The consumer is falling behind. This is truly what sank carter during the carter years. Our government so far has been able to avoid deflation and hide the stagflation for the past 5 years by channeling the bigtime inflation into the housing market - and perpetually changing the definition of the CPI to strip out "those pesky items that keep increasing at 10% annual rate". Because the lying is rampant and unspoken they have managed to do this. For a while at least. Right now we are on the precipice. We will either explode into stagflation or tip over the precipice into deflation. I predict that we will have our answer by August, just in time to vote our pocketbooks in the November Elections.