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> Huh ? Yes, check the dismal scientist site, prices did rise over
> 15% in California last year. Over 40% in the San Jose area. If
> that aint RAMPANT asset price inflation, I sure don't know what is.
James. Did you READ what Dennis wrote? Yes, housing inflation in
the Bay area is insane. But the Bay area is an ANOMALY. Look at the
Dismal Scientist site again and you'll see San Jose has the HIGHEST
rate of housing inflation in the country. (If I remember right,
anyway. The site seems to be down now.)
As Dennis pointed out, the AVERAGE housing inflation rate, across the
country, is closer to 3-5%. Which is NOT "RAMPANT asset price
inflation" by any stretch of the imagination.
If you have 100 people and ONE of them has a temperature of 106 degF,
do you slap all 100 of 'em into the hospital? Of course not. And if
ONE small area of the country has housing hyperinflation, should you
expect it to appear across the entire country? Of course not. Sure,
it's possible the Bay area's "fever" could spread, but that would
require fundamental changes in the economy around the country, and
even then it's hardly likely to spread in the same degree as found in
California.
If the entire country was in the 15-40% range, that would indeed be a
major problem. If isolated pockets are in the 15-40% range, that is
a problem ONLY for the people who **CHOOSE** to live there, and it
should not be a driver for national economic policy.
If you don't like the housing inflation in the Bay area, go live
somewhere else. But quit calling people stupid because they don't
think the Bay area is the only thing in the whole freakin' country.
Gary
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