Tuesday, February 24, 2009
Don Fishback over at Seeking Alpha has taken notice of the disturbing consistency of the owners' equivalent rent component of the Consumer Price Index and files this report.
Yes, Don, the numbers look a little too good, don't they?
That is, unless you were some wacky group of economists who were looking to allow actual home prices to rise to whatever level they can be pushed to with decades of easy money, but also wanted to see a low inflation number.
Then it would look just right.
Interestingly, yours truly seems to have almost cornered the market on Owners Equivalent Rent as a search term as shown below:
Thinking way ahead here, maybe that should be added to the list of candidate phrases for my obituary/tombstone - "he was more relentlessly critical of the Labor Department's use of owners' equivalent rent in the inflation statistics".