The Mess That Greenspan Made: A shocking turnaround in prices

A shocking turnaround in prices

Tuesday, February 23, 2010

This chart hasn't been updated in over a year and, with recent changes in both the Consumer Price Index and the Case-Shiller Home Price Index, the results are stunning.
Somehow, the bust of 2007-2009 seems to have been all so unnecessary, that is, if a more realistic measure of "inflation" had been used back in the middle of the last decade.

3 comments:

Anonymous said...: Possibly, but central planning via the printing press is really not all that easy. It might be better to just get rid of the printing press, and let them free market set interest rates. Central planning doesn't work in any other area of the economy, why should it work there?; February 23, 2010 6:50 PM
Anonymous said...: But how would the bankers get rich without it? It's all about keeping the bankers in the lifestyle in which they are accustomed.; February 24, 2010 4:28 AM
New Deal democrat said...: Tim, thanks very much for this. Had the Fed been paying attention to this measure of prices, and had they enforced the already-existing banking authority they had back in 2003-2005, a huge amount of pain could have been avoided.

"The Mess that Greenspan Made" indeed!; February 24, 2010 10:12 AM

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