Inflation ain't what folks want you to believe it is, and its finally coming home to roost.
Few people discuss money supply these days when it comes to the economy and investing. Yet it once was a primary indicator of future performance. This complacency will very likely sneak up and bite the markets in a bad way.
With rates rising and home values stagnating in the face of rising unsold inventory, foreclosures are on the rise. It was predictable for those who understand money supply and credit.
It is nice that someone should question core CPI. Now, we need only get them to realize that whichever CPI figure they use, the number is rigged to understate inflation across the board.
Most people believe their homes will maintain their current value, even in the face of the greatest home price inflations of all time. Their logic is that people live in their homes, and therefore they will not have to sell.
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For years real estate investors and home owners alike benefited from the front end of a cheap-credit induced bubble.
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