[bsrsharma]

This scheme might just work

$404000 Price drops $1000 every day!

now at $404 and dropping $1000 every single day!!!!

http://fortlauderdale.craigslist.org/rfs/472380998.html

[bsrsharma]

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.

http://www.bls.gov/cpi/cpifact6.htm

[bsrsharma]

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.

http://www.bls.gov/cpi/cpifact6.htm

[bsrsharma]

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.

http://www.bls.gov/cpi/cpifact6.htm

[bsrsharma]

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.

http://www.bls.gov/cpi/cpifact6.htm

[bsrsharma]

hipmatt – Macroeconomics is messy due to large number of variables. Actually, Bernanke is being correct on his statements.

1. Inflation is moderating – The fact that house prices are falling at the rate of at least 10% per year nationally and even upto 50% in some isolated markets means overall inflation has to come down. If a person spends, say 30% of income on housing, and house prices fall 10% per year, that alone contributes 3% per year of annual deflation.

2. Weak $ is a plus in some respects – it reduces trade deficits, increases exports, that in turn causes rise in employment etc., Weak $ only hurts importers and people with large accounts of cash (or cash equivalents). Since most Americans have net negative cash (or cash equivalent) – being in net debt generally, inflation is actually not bad for them.

Rest of the statements, I won’t attempt to side with BB since I don’t agree with him. But surely that man is not an idiot. He is just interpreting the data differently.

[bsrsharma]

hipmatt – Macroeconomics is messy due to large number of variables. Actually, Bernanke is being correct on his statements.

1. Inflation is moderating – The fact that house prices are falling at the rate of at least 10% per year nationally and even upto 50% in some isolated markets means overall inflation has to come down. If a person spends, say 30% of income on housing, and house prices fall 10% per year, that alone contributes 3% per year of annual deflation.

2. Weak $ is a plus in some respects – it reduces trade deficits, increases exports, that in turn causes rise in employment etc., Weak $ only hurts importers and people with large accounts of cash (or cash equivalents). Since most Americans have net negative cash (or cash equivalent) – being in net debt generally, inflation is actually not bad for them.

Rest of the statements, I won’t attempt to side with BB since I don’t agree with him. But surely that man is not an idiot. He is just interpreting the data differently.

[bsrsharma]

hipmatt – Macroeconomics is messy due to large number of variables. Actually, Bernanke is being correct on his statements.

1. Inflation is moderating – The fact that house prices are falling at the rate of at least 10% per year nationally and even upto 50% in some isolated markets means overall inflation has to come down. If a person spends, say 30% of income on housing, and house prices fall 10% per year, that alone contributes 3% per year of annual deflation.

2. Weak $ is a plus in some respects – it reduces trade deficits, increases exports, that in turn causes rise in employment etc., Weak $ only hurts importers and people with large accounts of cash (or cash equivalents). Since most Americans have net negative cash (or cash equivalent) – being in net debt generally, inflation is actually not bad for them.

Rest of the statements, I won’t attempt to side with BB since I don’t agree with him. But surely that man is not an idiot. He is just interpreting the data differently.

[bsrsharma]

hipmatt – Macroeconomics is messy due to large number of variables. Actually, Bernanke is being correct on his statements.

1. Inflation is moderating – The fact that house prices are falling at the rate of at least 10% per year nationally and even upto 50% in some isolated markets means overall inflation has to come down. If a person spends, say 30% of income on housing, and house prices fall 10% per year, that alone contributes 3% per year of annual deflation.

2. Weak $ is a plus in some respects – it reduces trade deficits, increases exports, that in turn causes rise in employment etc., Weak $ only hurts importers and people with large accounts of cash (or cash equivalents). Since most Americans have net negative cash (or cash equivalent) – being in net debt generally, inflation is actually not bad for them.

Rest of the statements, I won’t attempt to side with BB since I don’t agree with him. But surely that man is not an idiot. He is just interpreting the data differently.

[bsrsharma]

FLU: OK, I will ask you point blank – how often, you or anyone you know, have felt threatened or intimidated because of your “external features” are different?

Look, we have a war going on on Islamic terrorists & radical Arabs. How many Muslims or Arabs have you heard being harmed? They have better chance of getting mugged in NY/LA/Chicago etc.

If you really need some thing to worry about, I think it may be good to worry about obesity, our national epidemic that is truly killing us all.

[bsrsharma]

FLU: OK, I will ask you point blank – how often, you or anyone you know, have felt threatened or intimidated because of your “external features” are different?

Look, we have a war going on on Islamic terrorists & radical Arabs. How many Muslims or Arabs have you heard being harmed? They have better chance of getting mugged in NY/LA/Chicago etc.

If you really need some thing to worry about, I think it may be good to worry about obesity, our national epidemic that is truly killing us all.

[bsrsharma]

FLU: OK, I will ask you point blank – how often, you or anyone you know, have felt threatened or intimidated because of your “external features” are different?

Look, we have a war going on on Islamic terrorists & radical Arabs. How many Muslims or Arabs have you heard being harmed? They have better chance of getting mugged in NY/LA/Chicago etc.

If you really need some thing to worry about, I think it may be good to worry about obesity, our national epidemic that is truly killing us all.

[bsrsharma]

FLU: OK, I will ask you point blank – how often, you or anyone you know, have felt threatened or intimidated because of your “external features” are different?

Look, we have a war going on on Islamic terrorists & radical Arabs. How many Muslims or Arabs have you heard being harmed? They have better chance of getting mugged in NY/LA/Chicago etc.

If you really need some thing to worry about, I think it may be good to worry about obesity, our national epidemic that is truly killing us all.

[bsrsharma]

The implied assumption, as always, is – "all other things remaining unchanged". Interest rates represent cost of borrowing money. If you lower the cost of anything, there will be more demand generally. {It is true I can eat only so much bread, even at 10 cents a loaf, but demand for money is much more elastic}

[bsrsharma]

The implied assumption, as always, is – "all other things remaining unchanged". Interest rates represent cost of borrowing money. If you lower the cost of anything, there will be more demand generally. {It is true I can eat only so much bread, even at 10 cents a loaf, but demand for money is much more elastic}

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