Quote:
Originally Posted by 732002
The CPI would be a better indicator of inflation instead of picking the four
commodities that are up the most. Most families spend a large percentage of their income on housing not cotton.
Why won't income keep up with inflation?
The Fed wants to keep house prices from falling to decrease foreclosures.
Read some financial books about the depression and see what happens when the Fed lets deflation take hold. youtube is for entertainment books are for learning.
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The CPI is a joke, common now food isn't included, fuel isn't included. After I posted that commodities post, I've read a little more and it appears EVERY commodity was up in 2010. Wheat, corn, all metals, by OVER 10%.
Wages always lag inflation. You are going to pay more for the cup of coffee, until you get a raise. If it gets bad enough, you will get raises every couple of months.
The majority of foreclosures happen because the wage earner lost his/her job. There are a few exceptions where it is economically beneficial for under water home owners to bail, but IMHO that number is much lower than the number of foreclosures due to lack of employment.
here's a youtube for your entertainment:
http://www.youtube.com/watch?v=-IiarVvZguY
guarantee you'll learn something from this vid
books are so passé
