4th Look at Local Housing Markets in November
5 hours ago
This blog was previously devoted to seeing to it that Larry Summers get to spend more time with his family. Mission accomplished! The next mission is to provide the President with sage Economic advice.
I'm not the first to note this, but prices of houses and interest rates are not included in our measures of consumer inflation. If we include these, the situation in Europe and the USA seems even more deflationary (though in the USA the largest decline in house prices may be over - however, 'undershooting' of prices may occur). In the Netherlands, people are actually postponing the decision to buy a house as they expect house prices to fall further. In't that a 'textbook example' of consumer reactions to deflation? Imnsho, asset prices should be included in the decision. And the debauchment of the dollar? Long overdue!
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