Denial:

The CPI series is a composite of many series. From 1917 onward, official U.S. CPI series, those of the Bureau of Labor Statistics (BLS), are used. For 1978 to the present, the series is CPI-U (consumer price index for all urban consumers). For 1917-1978 (the latter year used for linking the series), the series is CPI-W (consumer price index for urban wage earners and clerical workers). For 1914-1917, the series of Paul Douglas is taken in place of the BLS series, because of improvements that he makes. The resulting series is linked to the composite series of David and Solar for 1774-1914.


$519.05 in the year 2006 has the same "purchase power" as $100 in the year 1970.

$2595.26 in the year 2006 has the same "purchase power" as $500 in the year 1970.

80% of $519.05 = $103.81
80% of $2595.26 = $519.06

Spin all you want fool but the dollar has lost 80% of it's purchasing power since 1970 under CPI and not commodities only as you tried to insinuate in your previous post.

Keep bothering me with your drivel and I will rip your precious Dow Jones and other markets to shreds inflation adjusted as well for all the world to see.

http://www.measuringworth.com/aboutus.html

More great news:

Homeowners will see their property values sink by $1.2 trillion next year, and 524,000 fewer jobs will be created -- both a result of the trouble caused by loan defaults and rising foreclosures, according to a report released this week for the U.S. Conference of Mayors.

Merry X-mas to all.

Heaping blame on people losing their homes seems like an over-simplification. If you are sitting in the banker's office, and he or she assures you that you can afford this mortgage, who is going to argue? It's his job to know whether or not you can afford the mortgage, right? And btw, those cheap houses some are waxing nostalgic about, aren't being built anymore. Even if you didn't get an ARM, you still might be in trouble because of increased gas prices, increased health insurance premiums, increased food prices, higher property taxes on your house, ect.

The 'Mortgage Crisis'. The media's been fashioning this into something for the last 6 months, and it continues to gain traction.
Hardly a mention given to the other shoe (unsecured consumer debt-a.k.a.- credit cards) which is poised to drop just as this 'holiday' spending frenzy concludes and as the fledgling new year will be getting off the ground. A Hang-Over from years of excess, from years of perceived yet hollow prosperity. Of forced 'gaiety' if you will allow. All of this's gone on our tab, and now the Piper is expecting payment. Was a time we could've just written him a check from our Home Equity line of credit. But that was a time when we had equity, and that time has passed, and Financial Nuclear Winter is upon us.

This is not the, it's just the beginning. Everyone saw the unethical laws that were being passed. every 10 year more unethical laws get passed. There is absolutely no secret how we got here.

No big deal because no one is dumb enough to still be buying home builder stocks...are they?

Do not blame the consumer on this. Remember Bush bragging about the many new homeowners and you fell for it. Little did you know that his
credit was built from a house of cards and now you have it. Gosh, how stupid can the public be to even fall for this. Houses were way overpriced. What kind of income did it require to pay for those houses think about it. I paid off with 9 3/4 % interest, which was required back in 1979. CEOs of those home loan companies got their millions and left. This whole government is run by crooks and so is the industry.

Prices for property are really based on a totally irrational internal formula based on the actual value of the home (not so much) the community, access to needed goods and services, and what the last guy paid.

In recent years, "what the last guy on the block paid" has taken over from real valuations. Homes went batshit, based on too-open credit, simple greed, and everyone thinking they needed extra room for the 17 servants they didn't have. Whatever happened to ~750 sq ft/per person?

Funny thing, in some regions, it hasn't fallen at all. In the northeast, it actually rose more than a percent. And in NYC, +20%!!

(To those who thought I was hearing things yesterday when I mentioned this, here is a link.)

http://abclocal.go.com/wabc/story?section=local&id=5748195

No, it's the BEST home drop in 37 years!

The prices went up for a few years hit a crest and now are coming down. Idiots who used their second mortgage to buy that giant SUV are suffering so are people who bought 600K houses when can really only afford 300K.
Hey but yellow press outlets like Huffpo are massaging statistical data in order to make money out of fake outrage. Nothing new here.

I hope Bush's crawford ranch burns down and his insurance company tells him to fuck off.

It's "only" retirement savings for ordinary folks - not news for Chimpy & his base.

My wife and I—our family income puts us smack dab on the median income mark for the community we live in. Yet there are no homes nor condos that are reasonably affordable to us where we live. And we don't even have children! I resent mightily the stupid Americans who have been buying much larger homes than they need, thus forcing builders to build homes which are out of range for the middleclass income. I don't think anybody in the power positions in America knows anything about those of us who earn between 45000 and 65000 dollars—that's the median income range for Americans. Who's building really affordable homes for the true middleclass in America? Who cares?

Old News ... Developers are now walking away from developments leaving half finished houses and empty lots for the previous buyers to contend with.

http://www.youtube.com/watch?v=QVFBojFJTZM&feature=related

Original buyers are seeing new homes being auctioned for half of what they paid 1 or 2 years ago.

After a 45-50% run up shouldn't the headline be "Best drop in 37 years."? What is wrong with more affordable housing, except for the idiot flippers?