I don’t really buy that, when there are so many other flaws.
For example, I’m pretty sure that the basket of goods used to track inflation has changed a lot since 1890.
One problem with Shiller’s chart is that it is based on official (understated since the mid 1990’s) inflation numbers.
Also, for those expecting another Great Depression, based on this history it’s a good time to buy a house. During the Great depression house values exceeded inflation by a cumulative ~15% over an 11-year period.
