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Do I need to post stock market (equity) and real estate price charts ?
Take a look at major market charts, if it isn't the steepest ski slope of
inflation you ever
saw, you live on another planet. How many thousand percent does a market
have to rise
before you will consider it inflation ?
----- Original Message -----
From: "Gary Fritz" <fritz@xxxxxxxx>
To: <jptaylor@xxxxxxxxxxxxxxx>
Cc: "RealTraders Discussion Group" <realtraders@xxxxxxxxxxxxxxx>
Sent: Thursday, September 21, 2000 9:47 AM
Subject: Re: [RT] Re: Oil inflation
> > 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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