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

To: mishedlo who wrote (56488)	3/22/2006 12:35:26 PM
From: suanny	Respond to of 110194

Mish Shouldn't the first consideration in building a basket be the individuals spendable income after taxes.Take fuel for instance,$4,000 as an arbitrary amount for gasoline and heating oil,would be 20% of someone's basket who has 20,000 income and only 4% for someone with 100,000 spendable income.I used fuel because people at each end of the spectrum are compelled to purchase at least enough to heat the house,get to work and shuttle the children.I believe this is the main reason for such wide variety in people's experience of inflation.The results are vastly skewed because the $20,000 person does not have much left after necessities to spend on items which have receded in price,which in many cases are items that are more optional in nature.