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

To: get shorty who wrote (34609)6/29/2005 10:40:17 AM
From: John VosillaRespond to of 306849
 
Inflation is contained by increasing the cost of capital (interest rates), not lowering it. Am I misunderstanding you?

I was referring to low cost of capital as one of the many reasons the CPI is understated. It's a two way street as lower interest rates might help raise the price of the asset while it reduces the carrying costs of owning the asset.


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