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November 8, 2007 at 7:54 PM #97616November 8, 2007 at 7:54 PM #97609bsrsharmaParticipant
house prices were not part of inflation calculation
PW – Actually BLS uses a highly convoluted formula called "Owner's Equivalent Rent" to shoehorn home prices into CPI. This is very inaccurate as rent and real ownership costs don't correlate very well, especially during bubble conditions.
November 8, 2007 at 7:54 PM #97599bsrsharmaParticipanthouse prices were not part of inflation calculation
PW – Actually BLS uses a highly convoluted formula called "Owner's Equivalent Rent" to shoehorn home prices into CPI. This is very inaccurate as rent and real ownership costs don't correlate very well, especially during bubble conditions.
November 9, 2007 at 1:25 AM #97674EugeneParticipantunless you drive, eat, pay utilities, and get completely free health care.
okay…
Gasoline is past $3. Oh the horror! It costs me whopping $4 to drive my BMW to work every day (20 miles each way). If I were working as a burger flipper, it would be 1/2 of my hourly salary or 6% of my total budget. I happen to make a little more than a burger fliipper. I think I’ll manage even if gasoline gets past $10 mark.Food … hmmm … somehow I don’t see any growth in food prices. Actually no, I do. Chipotle burritos are about 50c more expensive now than they were in 2002. That’s like 10% increase. And again, I don’t eat so much that my budget would hurt from a 10% increase in food prices.
Utilities and healthcare… I’ll pass here… I don’t remember how much utilities cost 5 years ago, and my employer pays most of my health insurance anyway.
Now. Where do I _really_ spend my money?
Cars. In 2002, I could buy a new Toyota Corolla starting at $12.5k or a new BMW 330 (225 hp) for $37k. Today I can buy a new bigger Toyota Corolla starting at $14.5k or a new BMW 328 (230 hp) for $32k. Weak dollar you say? What weak dollar?
Rent. In 2002 I rented a 1br apartment in UTC for $1100 a month. Today these apartments go for $1350.
Electronics. Today you can get a nice 19″ LCD monitor for $250 or a 50″ plasma TV for $1500. How much did they cost 5 years ago?
Clothes? Books? Toys? Furniture?
I rest my case …
November 9, 2007 at 1:25 AM #97681EugeneParticipantunless you drive, eat, pay utilities, and get completely free health care.
okay…
Gasoline is past $3. Oh the horror! It costs me whopping $4 to drive my BMW to work every day (20 miles each way). If I were working as a burger flipper, it would be 1/2 of my hourly salary or 6% of my total budget. I happen to make a little more than a burger fliipper. I think I’ll manage even if gasoline gets past $10 mark.Food … hmmm … somehow I don’t see any growth in food prices. Actually no, I do. Chipotle burritos are about 50c more expensive now than they were in 2002. That’s like 10% increase. And again, I don’t eat so much that my budget would hurt from a 10% increase in food prices.
Utilities and healthcare… I’ll pass here… I don’t remember how much utilities cost 5 years ago, and my employer pays most of my health insurance anyway.
Now. Where do I _really_ spend my money?
Cars. In 2002, I could buy a new Toyota Corolla starting at $12.5k or a new BMW 330 (225 hp) for $37k. Today I can buy a new bigger Toyota Corolla starting at $14.5k or a new BMW 328 (230 hp) for $32k. Weak dollar you say? What weak dollar?
Rent. In 2002 I rented a 1br apartment in UTC for $1100 a month. Today these apartments go for $1350.
Electronics. Today you can get a nice 19″ LCD monitor for $250 or a 50″ plasma TV for $1500. How much did they cost 5 years ago?
Clothes? Books? Toys? Furniture?
I rest my case …
November 9, 2007 at 1:25 AM #97663EugeneParticipantunless you drive, eat, pay utilities, and get completely free health care.
okay…
Gasoline is past $3. Oh the horror! It costs me whopping $4 to drive my BMW to work every day (20 miles each way). If I were working as a burger flipper, it would be 1/2 of my hourly salary or 6% of my total budget. I happen to make a little more than a burger fliipper. I think I’ll manage even if gasoline gets past $10 mark.Food … hmmm … somehow I don’t see any growth in food prices. Actually no, I do. Chipotle burritos are about 50c more expensive now than they were in 2002. That’s like 10% increase. And again, I don’t eat so much that my budget would hurt from a 10% increase in food prices.
Utilities and healthcare… I’ll pass here… I don’t remember how much utilities cost 5 years ago, and my employer pays most of my health insurance anyway.
Now. Where do I _really_ spend my money?
Cars. In 2002, I could buy a new Toyota Corolla starting at $12.5k or a new BMW 330 (225 hp) for $37k. Today I can buy a new bigger Toyota Corolla starting at $14.5k or a new BMW 328 (230 hp) for $32k. Weak dollar you say? What weak dollar?
Rent. In 2002 I rented a 1br apartment in UTC for $1100 a month. Today these apartments go for $1350.
Electronics. Today you can get a nice 19″ LCD monitor for $250 or a 50″ plasma TV for $1500. How much did they cost 5 years ago?
Clothes? Books? Toys? Furniture?
I rest my case …
November 9, 2007 at 1:25 AM #97601EugeneParticipantunless you drive, eat, pay utilities, and get completely free health care.
okay…
Gasoline is past $3. Oh the horror! It costs me whopping $4 to drive my BMW to work every day (20 miles each way). If I were working as a burger flipper, it would be 1/2 of my hourly salary or 6% of my total budget. I happen to make a little more than a burger fliipper. I think I’ll manage even if gasoline gets past $10 mark.Food … hmmm … somehow I don’t see any growth in food prices. Actually no, I do. Chipotle burritos are about 50c more expensive now than they were in 2002. That’s like 10% increase. And again, I don’t eat so much that my budget would hurt from a 10% increase in food prices.
Utilities and healthcare… I’ll pass here… I don’t remember how much utilities cost 5 years ago, and my employer pays most of my health insurance anyway.
Now. Where do I _really_ spend my money?
Cars. In 2002, I could buy a new Toyota Corolla starting at $12.5k or a new BMW 330 (225 hp) for $37k. Today I can buy a new bigger Toyota Corolla starting at $14.5k or a new BMW 328 (230 hp) for $32k. Weak dollar you say? What weak dollar?
Rent. In 2002 I rented a 1br apartment in UTC for $1100 a month. Today these apartments go for $1350.
Electronics. Today you can get a nice 19″ LCD monitor for $250 or a 50″ plasma TV for $1500. How much did they cost 5 years ago?
Clothes? Books? Toys? Furniture?
I rest my case …
November 9, 2007 at 4:47 AM #976675yearwaiterParticipantJust to remind the most common food items
Milk, Cereal, so many such items increased almost a $2 to $4 in the price range. Well we can’t really compare seeing Plasma TV now rates and 5years back rates due to the reason Plasma is not there in the math when the entire crisis started and many items on a regular buy basis are the major contributors. Plasma, Cloths all these are Year based or event based purchased one time items
5yearswaiter
November 9, 2007 at 4:47 AM #976065yearwaiterParticipantJust to remind the most common food items
Milk, Cereal, so many such items increased almost a $2 to $4 in the price range. Well we can’t really compare seeing Plasma TV now rates and 5years back rates due to the reason Plasma is not there in the math when the entire crisis started and many items on a regular buy basis are the major contributors. Plasma, Cloths all these are Year based or event based purchased one time items
5yearswaiter
November 9, 2007 at 4:47 AM #976785yearwaiterParticipantJust to remind the most common food items
Milk, Cereal, so many such items increased almost a $2 to $4 in the price range. Well we can’t really compare seeing Plasma TV now rates and 5years back rates due to the reason Plasma is not there in the math when the entire crisis started and many items on a regular buy basis are the major contributors. Plasma, Cloths all these are Year based or event based purchased one time items
5yearswaiter
November 9, 2007 at 4:47 AM #976855yearwaiterParticipantJust to remind the most common food items
Milk, Cereal, so many such items increased almost a $2 to $4 in the price range. Well we can’t really compare seeing Plasma TV now rates and 5years back rates due to the reason Plasma is not there in the math when the entire crisis started and many items on a regular buy basis are the major contributors. Plasma, Cloths all these are Year based or event based purchased one time items
5yearswaiter
November 9, 2007 at 7:22 AM #97634bsrsharmaParticipantI rest my case …
Without saying anything about house prices? You couldn't afford them in 2005; You can buy in 2010 at half off (2005 prices) or better. How is that for deflation?
November 9, 2007 at 7:22 AM #97695bsrsharmaParticipantI rest my case …
Without saying anything about house prices? You couldn't afford them in 2005; You can buy in 2010 at half off (2005 prices) or better. How is that for deflation?
November 9, 2007 at 7:22 AM #97706bsrsharmaParticipantI rest my case …
Without saying anything about house prices? You couldn't afford them in 2005; You can buy in 2010 at half off (2005 prices) or better. How is that for deflation?
November 9, 2007 at 7:22 AM #97712bsrsharmaParticipantI rest my case …
Without saying anything about house prices? You couldn't afford them in 2005; You can buy in 2010 at half off (2005 prices) or better. How is that for deflation?
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