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.