Lance on Jan 18 2008 | Filed under: Domestic Politics, Economics, Investing, Lance's Page, regulation
(cross posted at Risk and Return)
Ben Bernanke gives Congress and the President the green light to take steps to stimulate the economy along with a warning:
(more…)
Lance on Jan 15 2008 | Filed under: Economics, Investing, Lance's Page
(cross posted at Risk and Return)
Paper Economy has taken a close look at what it will take to get inflation adjusted housing prices in Massachusetts back to trend over a five year period. It should be noted that for this to happen sooner the decline would have to be deeper (due to inflation doing less of the work for us.)
The following chart (click for much larger version) shows that in order to bring Massachusetts “real” home prices (as tracked by the OFHEO home price index for Massachusetts) in-line with the average annual return of 2.5% seen since the early 1970s, nominal prices have to complete a 16.8% decline (or 28.8% in “real” terms) from the latest peak.
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