tag:blogger.com,1999:blog-8358039.post114355563584985066..comments2024-03-25T15:17:04.488-07:00Comments on Captain Capitalism: Ignore M3 at your Own PerilCaptain Capitalismhttp://www.blogger.com/profile/05620212946121617985noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-8358039.post-1143732089498581432006-03-30T07:21:00.000-08:002006-03-30T07:21:00.000-08:00Did attend the Ludwig Von Mises institute a while ...Did attend the Ludwig Von Mises institute a while back.Captain Capitalismhttps://www.blogger.com/profile/05620212946121617985noreply@blogger.comtag:blogger.com,1999:blog-8358039.post-1143691576593606522006-03-29T20:06:00.000-08:002006-03-29T20:06:00.000-08:00You're sounding rather Austrian.You're sounding rather Austrian.Alhttps://www.blogger.com/profile/12200768634540999752noreply@blogger.comtag:blogger.com,1999:blog-8358039.post-1143567058447339262006-03-28T09:30:00.000-08:002006-03-28T09:30:00.000-08:00I'd say that for the S&P 500 part of it is due to ...I'd say that for the S&P 500 part of it is due to the extra cash sloshing around the economy, in part brought on by government programs that give you an incentive to throw all your money into to stock market for retirement. That being said, yes, stock prices should grow faster than inflation as it is assumed competitive and profitable companies will be more efficent than inflation.<BR/><BR/>As for housing, yes, housing too should increase faster than inflation assuming your population is growing and there isn't any more land being made.<BR/><BR/>But the outlandish increase in property prices is beyond population increase. This is due to all the money sloshing around, increasing the supply of loanable dollars which drives interest rates to 6% for a 30 year mortgage.<BR/><BR/>This increases demand for houses as more people can afford more house. And this drives up property prices much higher (read inflation) than normally would have.<BR/><BR/>Sorry not to be more articulate, busy at work here.Captain Capitalismhttps://www.blogger.com/profile/05620212946121617985noreply@blogger.comtag:blogger.com,1999:blog-8358039.post-1143560537536625292006-03-28T07:42:00.000-08:002006-03-28T07:42:00.000-08:00I don't understand why the last chart means anythi...I don't understand why the last chart means anything. Wouldn't you expect stock returns to exceed that of the CPI over a long period of time? And wouldn't you also expect home prices to increase slightly higher than the CPI (although they seem to have increased more than normal recently)?<BR/><BR/>On another note, how did your date go? We were expecting a full report.Anonymousnoreply@blogger.com