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Monday, June 09, 2008

Arrgh!

From Newsweek's, The Economy: Why It’s Worse Than You Think (pg 2)
The situation we're in is nowhere near stagflation—the consumer price index is rising at a 3 percent annual rate, compared with 13 percent in 1979. But it's still a shock to the system.
The CPI formula used today is substantially different from that of 1979.It's ridiculous to compare 13% with 3% (actually, more like 4+%) as Newsweek (Daniel Gross) has done.



1 comments

Here's what happens if we add Hosuing tot he Misery Index:

http://bigpicture.typepad.com/comments/2008/06/enhanced-mise-1.html

By Blogger Barry Ritholtz, at 6/10/2008 12:27 PM  

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