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Agree on Greenspan, but do you really believe that the inflation rate has been 1.7%? Actual inflation is estimated to be anywhere from 3-7%, depending on the so
by jazzyk 10y ago
Agree on Greenspan, but do you really believe that the inflation rate has been 1.7%? Actual inflation is estimated to be anywhere from 3-7%, depending on the source.
The Fed, setting interest rates way below the actual inflation, is actually taking money from savers and retirees (rather than rewarding them), or forcing them to be reckless with their money by investing in principal-at-risk investments (which they should not at their age)
- JimboOmega 10y agoWhat source is that? The ones that don't say inflation is 1.7%? I'd like to point out as the other poster did that you shouldn't look at housing in development constrained areas (though that's a very interesting sidebar to the whole thing - how much of development constraint exists to prop up housing prices)? Incidentally "official" inflation in the SF Area is 2.7%, still not 3-7%. (http://www.bls.gov/regions/west/news-release/consumerpriceindex_sanfrancisco.htm http://www.bls.gov/regions/west/news-release/consumerpricein...)
- hx87 10y agoIf you live in a growing but development-constricted city, housing inflation alone would bring your personal inflation rate above 3%, but besides that (e.g. if you live in Houston) the prevailing inflation rate is still low.