I wasn’t around in the 70’s but I would agree wages may go up eventually as a result of the higher prices across the board. However, the time frame is the issue. Going into a recession we’re going to lose jobs so any increases anywhere could be more than offset by job losses. When wages finally do rise it will be nowhere near the level of actual inflation we are currently experiencing, and nowehere near enough to stop home prices from plummeting.

It will be interesting to see what Helicopter Boy says about inflation tomorrow.

Sounds like most expect a small, but maybe a final cut. I don’t think we will see the end of thee recession until rates go back up. The dollar and therefore inflation certainly have no hope of turning for the better until that happens either.