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That stock market bull run from 2008 with crazy all-time-high P/E ratios? That's inflation. We just don't include security prices in CPI because it's not politi
by boppo1 4y ago
That stock market bull run from 2008 with crazy all-time-high P/E ratios? That's inflation. We just don't include security prices in CPI because it's not politically expedient to let the poors know they're getting priced out of having a meaningful stake in the economy.
- JumpCrisscross 4y ago> stock market bull run from 2008 with crazy all-time-high P/E ratios? That's inflation. No, it isn’t. Your original comment [1] decries people misusing words. Inflation is a measure of real economy price levels. That’s what it means. We have other words for prices of financial assets: indices. You want to talk about multiple expansion, risk premium compression and easy money in finance. That is fine! Lots of people are intelligently doing so! But they go further by discussing concepts, not muddied nomenclature. > don't include security prices in CPI because it's not politically expedient to let the poors know they're getting priced out Or because someone saying inflation is fine because while the price of bread doubled the stock market halved would get shot. [1] https://news.ycombinator.com/item?id=32254910 https://news.ycombinator.com/item?id=32254910