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


To: bart13 who wrote (83739)7/17/2007 6:22:40 PM
From: shades  Read Replies (1) | Respond to of 110194
 
The CPI was 17.1 in August 1929 and dropped to 12.6 in March of 1933.

Bart your charts are interesting, keep up the good work - there was so much turmoil and chaos and crazy gubbment tricks and congressman trying to be assasinated back then by other congressmen - do you believe the way the CPI was calculated in 29 was the same as in 33 - it may be I simply do not know - but I see what our politicians and bankers do today - I would not put it past the folks of that era to fudge CPI numbers back then between various years - if you don't have reliable honest data - its hard to make reliable comparisons.

That's closer to 25% than 10%, and that doesn't exactly seem like mild deflation to me, especially considering that doesn't include things like the drop in the Dow from about 380 to about 40, or the average new house dropping from about $8500 to $5700 (admittedly sparse housing data but backed up by apartment rent data that shows similar declines).

The integrity of the data is KEY - I worked in a fortune 5 company - IBM - boy did my eyes get opened at all the lies and corruption and misreported numbers on critical things that affected peoples lives - I don't trust anything - hehe.

Here's the other chart from the 1920-40 period, which has CPI, bank credit and recessions (as defined by the NBER) on it.

As defined by the NBER (sigh) I don't know - maybe it is good - maybe the way CPI was calculated and the people recording those calculations were very honest - maybe not.