Chart of the Week: Actual Housing Costs (w/o BLS Adjustments

Before 1983, CPI measured housing inflation by looking at
what it cost to own a home (house prices, mortgage, property taxes). After 83,
BLS changed the housing component, using the concept of Owner’s Equivalent
Rent. Revert back to the true cost of housing, and Core CPI spikes to a more
realistic 5.3%.

Actual Housing Costs (w/o BLS Adjustments)


Source: Tim Iacono

BLS perversely lowers Owner’s Equivalent
further as utility costs go up: “CPI calculated the pure rent of the
matched renters by removing the value of any landlord-provide utilities.”

Random Items:

As Gazprom Grows, So Does Russia’s Sway

Analyst Timing Is Off at Key Market Turning Points

China: No Longer Deflationary for the World?

The End of Cheap Oil, Once Again

Millions to receive Social Security boost

Seem like you’re earning less? You aren’t alone

Grand Tasting 2005 To Benefit City Harvest

Quote of the Day:

"Failure is a part of success. There is no such thing as a bed of roses all
your life. But failure will never stand
in the way of success if you learn from it."
~ Hank Aaron

Category: Economy, Inflation, Real Estate

Back Out Housing Adjustments, and Core CPI = 5.3%

Category: Economy, Inflation, Real Estate

Uh-Oh: Apple on the Cover of Time

Category: Financial Press, Psychology, Web/Tech

Weekend Linkfest!

Category: Economy, Financial Press, Weblogs

Eliminate Disaster Stocks from Your Portfolio

Category: Investing

Inflation Spin

Category: Economy, Inflation

A Day of Last Resort

Category: Economy

Crude Price History

Category: Commodities

Well, If You Exclude Oil, You See…

Category: Financial Press

Look Ma, No Inflation!

Category: Economy