Greenspan’s 59-cent dollar

[Wolfram]

Edgar J. Steele's recent "I See a Silver Moon Rising" makes interesting reading in more ways than just the commentary on silver.


For instance, if your house was appraised at $60,000 in 1987, and its current market value (?) is $100,000, don't go bananas about being $40,000 richer.


Check the inflation calculator


http://www.westegg.com/inflation/ (http://www.westegg.com/inflation/)


and you'll find that under Greenspan's watch from 1987 through last January, the 1987 dollar is worth 59 cents, and what cost a dollar then will cost you $1.68 now.


In other words, you're back to square one.

[Don Wassall]

In the region where I live, housing prices have gone up very slowly. Theprice inflation in real estatehas been relegated to certain cities and states, ala Southern California, the Bay Area, Las Vegas, Atlanta, Boston, New York, South Florida, etc. In most of the "red states" the price of a home hasn't kept pace with inflation even during the "housing bubble."

[Wolfram]

In the region where I live, housing prices have gone up very slowly. Theprice inflation in real estatehas been relegated to certain cities and states, ala Southern California, the Bay Area, Las Vegas, Atlanta, Boston, New York, South Florida, etc. In most of the "red states" the price of a home hasn't kept pace with inflation even during the "housing bubble."


You are correct, Don.


Using the inflation calculator referred to, I would estimate that I'm running around 15 percent below inflation, assuming the calculator is a national average.


The figures for the California Bay area are simply unbelievable--anything under $1 million seems to be almost in the "starter" category! The only time I was ever in San Francisco was in 1986 on company assignment, and even then prices were unreal by local standards.