Tag Archives: Deflation

When The Fed Speaks, Housing Listens

Especially since the 1990′s, home prices have largely been driven, directly or indirectly, by the actions of The Fed. The Greenspan Fed enabled the Credit and Housing Bubbles, and the Bernanke Fed is doing everything it can to keep them inflated, extending and pretending, hoping the fundamental core economy will eventually catch up.
Continue reading

Posted in Banking and Finance, Economic News, Foreclosures and Short Sales, The Daily Hotsheet | Tagged Bernanke, Deflation, Foreclosures, Greece, greenspan, Home Prices, Inflation, QE2, QE3, Shadow Inventory, The Fed | 7 Comments

Why housing prices belong in CPI

Whether you define deflation in terms of credit, in terms of purchasing power of the dollar, in terms of the CPI, or in terms of the Case-Shiller CPI, to the complete consternation of screaming hyperinflationists, those predicting deflation got it correct. Continue reading

Posted in Foreclosures and Short Sales, Home Economics | Tagged Deflation, Home Prices, Housing Bubble, Inflation, The Fed | Leave a comment

Apropos of Everything: Take 30 Minutes to Understand What is Actually Happening in our Economy

This brilliant report clearly explains the complex forces at play in our current economy. Topics covered include The Fed, inflation, The Great Depression, The Dollar, deflation, geopolitics, budget deficits, consumer spending, and more.

This is a must-read. Continue reading

Posted in Banking and Finance, Economic News, Financial News, Home Economics, Investing, What You Need To Know About Buying and Selling Real Estate | Tagged Budget Deficits, Consumer Spending, Deflation, geopolitics, Inflation, The Dollar, The Fed, The Great Depression | Leave a comment

What If Home Prices Were Counted In Inflation?

The Fed makes banking policy decisions, largely influenced by the level of inflation, yet home prices are excluded from the calculation. As home prices skyrocketed, inflation – as it felt to people on the street – was probably underestimated. With today’s falling home prices, we could be in a more deflationary environment than economists give credit. Continue reading

Posted in Home Economics | Tagged Deflation, Home Prices, Inflation, Interest Rates, The Fed | Leave a comment

Bernanke, Goldilocks and The Red Queen

Bernanke has bet his bankroll on Goldilocks, but the Red Queen trumps the golden girl. Continue reading

Posted in Fresh Perspectives, Home Economics | Tagged Bernanke, Deflation, Interest Rates, The Fed | Leave a comment