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But in 2008 the housing bubble popped and the prices came back down to 2004 levels. Wouldn't you say then that the CPI was correct not to adjust too far to acc
by Negitivefrags 5y ago
But in 2008 the housing bubble popped and the prices came back down to 2004 levels.
Wouldn't you say then that the CPI was correct not to adjust too far to account for it?
And if you think housing right now has increased a lot and the CPI isn't taking that into account, perhaps that says something about what is to come....
- jpmattia 5y ago> Wouldn't you say then that the CPI was correct not to adjust too far to account for it? My point was it missed the largest housing cost rise in multiple generations, despite housing being ~1/3 of the CPI. That it then also missed the downward correction is just more evidence that the CPI is uncorrelated to housing costs.