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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (56207)	3/18/2006 11:25:38 PM
From: UncleBigs	Respond to of 110194

Cost of living is not up 50% in 4 years. Not even close. House and apartment rents are dead flat over the 4 year period. Food is up marginally. Electronics and clothing are down. Autos are up marginally. Energy, education and medical costs are all up 30% to 50% over the past 4 years. Education costs are either zero or huge for families depending on their situation. Out of pocket medical costs for insured people are pretty minimal still. There are a lot of things that go into a price of a product of service. I know one thing. Aggregate unit demand will be less in the near future than it has been for the past 2 or 3 years. Demand has been unsustainably driven higher by easy credit. A credit contraction doesn't guarantee lower prices but at the margin it is a hell of lot more deflationary than inflationary.

To: John Vosilla who wrote (56207)	3/19/2006 3:07:37 PM
From: Mike Johnston	Read Replies (1) \| Respond to of 110194

I agree with that assessment, 50% in the last 4-5 years sounds about right. And i don't include house prices, just cost of day to day living. House prices are up 100-200%.

To: John Vosilla who wrote (56207)	3/19/2006 8:15:26 PM
From: mishedlo	Read Replies (3) \| Respond to of 110194

All I know is my costs of living are up easily 50% in four years. Please be serious. That is absurd. In my case, food prices have probably gone down (increased competition), I have owned a home and my payment has fluctuated but it is about where it was 4 years ago, we found a better agent and out home owners insurance actually dropped, this is unusual and only relevant to us but we filed a tax protest and actually lowered our property taxes. OK so gasoline prices are higher but the price of the Hundai Elantra we bought (new last year) was probably cheaper than anything of comparable quality 4 years ago. In short we probably have had close to 0% inflation. Strip away the property tax protest and it is indeed positive, perhaps by a few % a year. I do not believe anyone that says living expenses are up 50% in 4 years. Prove it, and start with your mortgage or rent. Mish