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Folks have been Pointing out issues with US economic metrics for some time. Core inflation only works if you don’t buy food or pay market rate housing. On its f

by lumost 3y ago

Folks have been Pointing out issues with US economic metrics for some time. Core inflation only works if you don’t buy food or pay market rate housing. On its face, the Fed logic makes sense - most people do not pay market rates for housing in the short term. In the long term, everyone pays market rate.

orop8jrj 3y ago
It’s almost like all symbolic logics are leaky abstractions and economics abstraction is being leveraged to leak undesirables in deference to decree of the fiat rich, whose skill is “been alive longer, was born into post world war economy.” The luck is in being alive this long. Doesn’t say anything about their fitness to steer society via socialized memes there’s a communal upside to capitalism. Sounds pretty socialist. “It’s good your agency is expropriated and your value deflated for the cause!”
tnel77 3y ago
Can you elaborate on the housing part? I guess I would have assumed that people paid market rate in the short term and below market rate long term, assuming they owned a house and were starting to see some benefits from locking in that lower mortgage.
- lumost 3y ago
  Assuming that in The long term individuals get below market rate housing presumes that A) individuals will eventually be able to afford home ownership B) the local economy is stable enough for them to purchase a house C) interest rates/principal are low enough at the time of purchase for this to be worth the opportunity cost D) Once I purchase a home, I needn’t move or purchase another at market rates. In the post war years the above conditions held for decades leading to relatively steady home ownership rates and ages of first home ownership. However due to the rapidly rising cost of housing since the late 80s home ownership is rapidly changing. Millennials have famously deferred home ownership, while gen z is starting to believe its is simply impossible to acquire. 22%[1] of all housing sales now go to private equity firms. Unlike the stats collection used by the Fed of asking private home owners what they would rent their house for - rental rates are now often the subject of collusion through pricing algorithms[2]. Finally, individuals rarely own a single house forever - this would reduce economic mobility and be problematic in and of itself. When a home owner purchases a new home, they are subject to market pricing. 1. https://www.dwell.com/amp/article/ban-private-equity-single-family-home-housing-shortage-geoff-smith-db8cbca0 https://www.dwell.com/amp/article/ban-private-equity-single-... 2. https://www.businessinsider.com/real-estate-apartment-rent-price-setting-landlords-realpage-lawsuit-illegal-2023-11?amp https://www.businessinsider.com/real-estate-apartment-rent-p...

by lumost 3y ago

orop8jrj 3y ago

It’s almost like all symbolic logics are leaky abstractions and economics abstraction is being leveraged to leak undesirables in deference to decree of the fiat rich, whose skill is “been alive longer, was born into post world war economy.” The luck is in being alive this long. Doesn’t say anything about their fitness to steer society via socialized memes there’s a communal upside to capitalism. Sounds pretty socialist. “It’s good your agency is expropriated and your value deflated for the cause!”

tnel77 3y ago

Can you elaborate on the housing part? I guess I would have assumed that people paid market rate in the short term and below market rate long term, assuming they owned a house and were starting to see some benefits from locking in that lower mortgage.

lumost 3y ago
Assuming that in The long term individuals get below market rate housing presumes that A) individuals will eventually be able to afford home ownership B) the local economy is stable enough for them to purchase a house C) interest rates/principal are low enough at the time of purchase for this to be worth the opportunity cost D) Once I purchase a home, I needn’t move or purchase another at market rates. In the post war years the above conditions held for decades leading to relatively steady home ownership rates and ages of first home ownership. However due to the rapidly rising cost of housing since the late 80s home ownership is rapidly changing. Millennials have famously deferred home ownership, while gen z is starting to believe its is simply impossible to acquire. 22%[1] of all housing sales now go to private equity firms. Unlike the stats collection used by the Fed of asking private home owners what they would rent their house for - rental rates are now often the subject of collusion through pricing algorithms[2]. Finally, individuals rarely own a single house forever - this would reduce economic mobility and be problematic in and of itself. When a home owner purchases a new home, they are subject to market pricing. 1. https://www.dwell.com/amp/article/ban-private-equity-single-family-home-housing-shortage-geoff-smith-db8cbca0 https://www.dwell.com/amp/article/ban-private-equity-single-... 2. https://www.businessinsider.com/real-estate-apartment-rent-price-setting-landlords-realpage-lawsuit-illegal-2023-11?amp https://www.businessinsider.com/real-estate-apartment-rent-p...