Thursday, September 18, 2008

Where the Economy is headed


I like charts and graphs. Easy way to see things - I'll send you to the links to look at them.

All you need to know -

Home Prices - inflation adjusted long term graph.

Real home values, real Dow and real savings rate.

More on the Real Dow

People should strongly consider TIPS - Treasury Inflation-Protected Securities.

A big caveat remains - how much is the BLS lying about the CPI? Quite a bit actually.

A second question - is the GOP even good for the wealthy - if you count wealthy as those with the top 5% of income? They look good for only the top 0.1%.

What does Houston's own Bonddad say? It's hit the fan and practically every American financial institution is struggling to avoid bankruptcy. I said a few weeks ago that those high CD rates from Washington Mutual and Wachovia was a desperate attempt by them to raise relatively low cost cash. Within two weeks I expect to see them merged or go under.

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