Forum Replies Created
-
AuthorPosts
-
bsrsharma
Participanthouse 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.
bsrsharma
Participanthouse 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.
bsrsharma
Participanthouse 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.
bsrsharma
Participanthouse 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.
bsrsharma
Participanthipmatt – 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
Participanthipmatt – 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
Participanthipmatt – 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
Participanthipmatt – 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.
November 7, 2007 at 8:15 PM in reply to: Paranoids: Any ABC’s fearful of chinese bashing in the future? #97141bsrsharma
ParticipantFLU: 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.
November 7, 2007 at 8:15 PM in reply to: Paranoids: Any ABC’s fearful of chinese bashing in the future? #97203bsrsharma
ParticipantFLU: 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.
November 7, 2007 at 8:15 PM in reply to: Paranoids: Any ABC’s fearful of chinese bashing in the future? #97212bsrsharma
ParticipantFLU: 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.
November 7, 2007 at 8:15 PM in reply to: Paranoids: Any ABC’s fearful of chinese bashing in the future? #97220bsrsharma
ParticipantFLU: 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.
November 7, 2007 at 6:04 PM in reply to: relationship between money supply and interest rates #97058bsrsharma
ParticipantThe 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}
November 7, 2007 at 6:04 PM in reply to: relationship between money supply and interest rates #97119bsrsharma
ParticipantThe 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}
-
AuthorPosts
