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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (78426)	4/28/2008 3:48:04 AM
From: Crimson Ghost	Read Replies (1) \| Respond to of 116555

There are many other distortions in the way inflation is measured aside from home prices. Hedonic adjustments. Bean counters missing the multiplicity of fees that dramatically hike the effective cost for many of credit cards, bank services, cell phone services, hotels, auto rentals etc. Bean counters missing effective price hikes via size and portion shrinkage. Just to mention some things. CPI inflation reportedly would be at least twice as high as the official CPI if measured the way it was during the 1970s before the myriad changes and adjustments designed to screw seniors and justify artificially low interest rates.

To: mishedlo who wrote (78426)	4/28/2008 10:51:07 AM
From: $Mogul	Respond to of 116555

One question to ponder is if the richest americans have more liquid cash then they have had in the last few years. I have a feeling they do, as many assets are being sold off. Economy hoping for the trickle down theory it seems.

To: mishedlo who wrote (78426)	4/28/2008 11:17:15 AM
From: Steve Lokness	Read Replies (1) \| Respond to of 116555

Mish; Home prices are crashing. That is the single biggest expense anyone has. Don't you think though that one reason home prices are crashing is that the energy and food inflation is making it increasingly hard to maintain your home? People in their balloon mania bought homes too big and too grande for them to maintain and so now that the prices of all those things needed to maintain your home are shooting skyward, people unable to pay the piper must sell. That adds to the already heavy supply. .......There is little doubt that the cost of energy to heat/cool your home are jumping as are the taxes just now catching up to the rising values. Even transportation cost to reach your new home in that locked gate community far away from town is an cost although indirect for all the new "trophy" homes. Throw in higher insurance prices. For me there has been no inflation or deflation in my home because I owned it and will own it all along. I don't borrow on it so it's value is meaningless. What is NOT meaningless though is all those cost shooting upwards mentioned above. respectfully; steve