Because it’s true, particularly assets like equities. Real estate as a little bit of a relationship, but the price increase has more to do with a lack of supply, largely a result of poor governmental policies (e.g., zoning), than monetary policy.

This post was edited on 4/8/21 at 9:13 am

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Posted by rocket31

Member since Jan 2008

41819 posts

Posted on 4/8/21 at 9:14 am to buckeye_vol

quote:
Because it’s true

there is no "true" way to calculate or measure inflation, that has been my point from the beginning.

thats why we are all circle-jerking in this thread back and forth in the first place.

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Posted by SlowFlowPro

Simple Solutions to Complex Probs

Member since Jan 2004

423792 posts

Posted on 4/8/21 at 9:55 am to buckeye_vol

quote:
but the price increase has more to do with a lack of supply

there are 2 big issues i have with this argument

one, our population has not increased in a way that would correlate to the price increase. i'm speaking nationally not in specific hot zones (where this can obviously happen and NIMBYs use zoning to prop up their home values, like SF). the question is how could demand explode like this? there are 3 answers: (1) consolidation of wealth allowing multiple home purchases (2) foreign investment and (3) increased demand

the demand needed for to affect supply in this manner is based solely in unsustainably low interest rates. that is part of inflation. that same increase in money in the system is creating the consolidation of wealth, because only particular populations are accessing these low rates and they're flooding certain markets they see as investments with it. that is inflating these markets.

foreign investment is just an example of "we're the best, worst option" b/c everywhere else is even more fricked

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