IPFS News Link • Housing
Housing Bubble and Everything Bubble in One Simple Picture
• https://www.themaven.net, By Mike Mish ShedlockHow Did We Get Here?
That's easy.
Average Wages vs CPI
Note the correct CPU comparison for this chart is CPI-W not CPI-U, not that it matters much.
No matter what official CPI one uses, the chart is a joke. Why? The CPI only reflects rent, not actual housing prices.
The Fed made this mistake during the housing bubble and they made it again from 2011 to present.