Inflation: The Biggest Scam of Our Time
The Consumer Price Index is manipulated in three major ways: weighting, substitution and hedonic indexing. No doubt you’ve experienced it first hand by now; inflation is the biggest scam of our time.
The Consumer Price Index is manipulated in three major ways: weighting, substitution and hedonic indexing. No doubt you’ve experienced it first hand by now; inflation is the biggest scam of our time.
Will mortgage rates continue to rise? Rates are still negative if you know how to do the math of real estate and understand inflation.
An article from Real Trends says the real estate industry accounted for 16.9% of the Gross Domestic Product in 2021. The National Association of REALTORS estimates that each home sale on average generated $113,000 of economic impact. Wow! What other industry, for every transaction, generates $113,000 to the bottom line?
We’ve all been there—regretting not jumping on a great investment opportunity because we talked ourselves out of it. There’s no way anyone could have guessed that a house bought in 2012 with a good debt coverage ratio of 2.5 and a fantastic price per square foot could double in value in under a decade. It could have looked decent at the time, but is nothing to get too excited over.