Main Entry: gull·ibleVariant(s): also gull·able /'g&-l&-b&l/Function: adjectiveDate: 1818: easily duped or cheated
Isn't this like Katherine Harris being responsible for the Florida vote?
Bottom line, it's all lies folks. The ones cooking the books aren't the ones who should be responsible for reading us the books
The NAR number on Thursday is looking reallllllllyyyy suspect given Friday's horrific new home numbers. And the Fed benign inflation numbers are realllllllyyyyy suspect given your pocketbook, eh?
Thornburg, echoing Pimco bond guru William Gross, believes one reason the official inflation number is held down is a statistical corruption in putting the CPI together called "hedonic adjustments." Say a new computer with extra power and memory costs $100 more than last year's model. That computer nevertheless might, for CPI purposes, show a price decline, since the add-on goodies supposedly are worth much more than the retail increase.
Nonsense, Thornburg says: "It still just does what a computer is supposed to, and if you're paying more for it, that's inflation."
Equally bogus, says Thornburg, is the notion of excluding food and energy prices from the so-called core CPI, the one everyone looks at. "Yeah, they're volatile, but so what?" Thornburg says of energy and food. "People need to drive to work, and they need to eat."
Thornburg also finds that housing costs, which make up 22% of the CPI, are undercounted in the index. They are based on how much a homeowner supposedly would pay to rent his house if he were a tenant. While U.S. home prices surged 13% in 2004, the CPI housing component went up just 2.4%.
March 25, 2006
The NAR is responsible the existing home sales report. The Fed is responsible for the inflation report... Are we really this dumb and gullible?
Posted by blogger at 3/25/2006