[kev374]

[quote=PadreBrian]To be fair wages have improved at about 4% a year since 2000. The dollar is also only worth half as much. House prices need to get down to the 2002/2003 levels for housing to get back to normal. [/quote]

Not really. Real income has declined over the last 10 years. Real income is income growth minus inflation in other areas food, energy, insurance, transportation, health care etc.

If your income grows by 4% each year but inflation is 5-6% like it’s been (disregarding the fake government numbers of 2% of course) then you’re worse off, not better off.

[kev374]

[quote=PadreBrian]To be fair wages have improved at about 4% a year since 2000. The dollar is also only worth half as much. House prices need to get down to the 2002/2003 levels for housing to get back to normal. [/quote]

Not really. Real income has declined over the last 10 years. Real income is income growth minus inflation in other areas food, energy, insurance, transportation, health care etc.

If your income grows by 4% each year but inflation is 5-6% like it’s been (disregarding the fake government numbers of 2% of course) then you’re worse off, not better off.

[kev374]

[quote=PadreBrian]To be fair wages have improved at about 4% a year since 2000. The dollar is also only worth half as much. House prices need to get down to the 2002/2003 levels for housing to get back to normal. [/quote]

Not really. Real income has declined over the last 10 years. Real income is income growth minus inflation in other areas food, energy, insurance, transportation, health care etc.

If your income grows by 4% each year but inflation is 5-6% like it’s been (disregarding the fake government numbers of 2% of course) then you’re worse off, not better off.

[kev374]

[quote=PadreBrian]To be fair wages have improved at about 4% a year since 2000. The dollar is also only worth half as much. House prices need to get down to the 2002/2003 levels for housing to get back to normal. [/quote]

Not really. Real income has declined over the last 10 years. Real income is income growth minus inflation in other areas food, energy, insurance, transportation, health care etc.

If your income grows by 4% each year but inflation is 5-6% like it’s been (disregarding the fake government numbers of 2% of course) then you’re worse off, not better off.

[kev374]

[quote=PadreBrian]To be fair wages have improved at about 4% a year since 2000. The dollar is also only worth half as much. House prices need to get down to the 2002/2003 levels for housing to get back to normal. [/quote]

Not really. Real income has declined over the last 10 years. Real income is income growth minus inflation in other areas food, energy, insurance, transportation, health care etc.

If your income grows by 4% each year but inflation is 5-6% like it’s been (disregarding the fake government numbers of 2% of course) then you’re worse off, not better off.

[kev374]

You can’t look at just the inflation number without the income growth factor. You have to look at real *income inflation* which is income growth minus the inflation in other categories. If this number is negative then affordability has declined not increased as many are suggesting here!

Real income is declining due to inflation and stagnant wages. This means less affordability.

If income is not adjusting at the same rate as inflation the term “Inflation adjusted home price” makes no sense whatsoever.

Also the 47% drop seems about right. I know a friend who bought his townhome in Aliso Viejo for $185,000 in 1997. Now appraised around $450,000 or so. A 50% drop would be $225,000 so pretty realistic in my opinion.

[kev374]

You can’t look at just the inflation number without the income growth factor. You have to look at real *income inflation* which is income growth minus the inflation in other categories. If this number is negative then affordability has declined not increased as many are suggesting here!

Real income is declining due to inflation and stagnant wages. This means less affordability.

If income is not adjusting at the same rate as inflation the term “Inflation adjusted home price” makes no sense whatsoever.

Also the 47% drop seems about right. I know a friend who bought his townhome in Aliso Viejo for $185,000 in 1997. Now appraised around $450,000 or so. A 50% drop would be $225,000 so pretty realistic in my opinion.

[kev374]

You can’t look at just the inflation number without the income growth factor. You have to look at real *income inflation* which is income growth minus the inflation in other categories. If this number is negative then affordability has declined not increased as many are suggesting here!

Real income is declining due to inflation and stagnant wages. This means less affordability.

If income is not adjusting at the same rate as inflation the term “Inflation adjusted home price” makes no sense whatsoever.

Also the 47% drop seems about right. I know a friend who bought his townhome in Aliso Viejo for $185,000 in 1997. Now appraised around $450,000 or so. A 50% drop would be $225,000 so pretty realistic in my opinion.

[kev374]

You can’t look at just the inflation number without the income growth factor. You have to look at real *income inflation* which is income growth minus the inflation in other categories. If this number is negative then affordability has declined not increased as many are suggesting here!

Real income is declining due to inflation and stagnant wages. This means less affordability.

If income is not adjusting at the same rate as inflation the term “Inflation adjusted home price” makes no sense whatsoever.

Also the 47% drop seems about right. I know a friend who bought his townhome in Aliso Viejo for $185,000 in 1997. Now appraised around $450,000 or so. A 50% drop would be $225,000 so pretty realistic in my opinion.

[kev374]

You can’t look at just the inflation number without the income growth factor. You have to look at real *income inflation* which is income growth minus the inflation in other categories. If this number is negative then affordability has declined not increased as many are suggesting here!

Real income is declining due to inflation and stagnant wages. This means less affordability.

If income is not adjusting at the same rate as inflation the term “Inflation adjusted home price” makes no sense whatsoever.

Also the 47% drop seems about right. I know a friend who bought his townhome in Aliso Viejo for $185,000 in 1997. Now appraised around $450,000 or so. A 50% drop would be $225,000 so pretty realistic in my opinion.

[kev374]

This thief has successfully managed to stick his losses onto the taxpayers, this guy is the one who has been lobbying for these changes…

http://lansner.freedomblogging.com/2008/09/08/pimco-fund-makes-17-billion-in-a-day-after-bailout/

[kev374]

This thief has successfully managed to stick his losses onto the taxpayers, this guy is the one who has been lobbying for these changes…

http://lansner.freedomblogging.com/2008/09/08/pimco-fund-makes-17-billion-in-a-day-after-bailout/

[kev374]

This thief has successfully managed to stick his losses onto the taxpayers, this guy is the one who has been lobbying for these changes…

http://lansner.freedomblogging.com/2008/09/08/pimco-fund-makes-17-billion-in-a-day-after-bailout/

[kev374]

This thief has successfully managed to stick his losses onto the taxpayers, this guy is the one who has been lobbying for these changes…

http://lansner.freedomblogging.com/2008/09/08/pimco-fund-makes-17-billion-in-a-day-after-bailout/

[kev374]

This thief has successfully managed to stick his losses onto the taxpayers, this guy is the one who has been lobbying for these changes…

http://lansner.freedomblogging.com/2008/09/08/pimco-fund-makes-17-billion-in-a-day-after-bailout/

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