Monday, August 28, 2006
The real flipping problem with housing is that the median household income in this country has been dropping for years. Stomping on the little guy isn't exactly going to improve the situation. Stopping unfair competition from under-the-counter illegals would help. Building power plants and drilling our own oil would help. The Fed's idea will hurt the economy instead of helping it.
Furthermore, between 2000 and 2004 inflation-adjusted median household income dropped.
More about this later, but the info is on pgs 29 & 30 of the CPS. An easier summary page which doesn't include 2005 yet is Meyer's Group's.
Fausta, family net worth will rise anytime you have an RE boom. Real median household income hasn't risen since 2000, if you adjust it for inflation and look over the whole period. Seriously. Compare 2000 - 2006 using the old inflation numbers, and no dice. It's falling, not rising, except in the NE.
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