…OP-ED. As usual Tamny confuses nominal prices with relative prices. The variability of the relative price of oil prices has little to do with U.S. monetary policy. Herbert Stein understood…

…Under his plan, oil companies would have to pay a 50 percent tax on profits made when oil prices are above $40 a barrel … But crude oil prices aren’t…

…of looking at this data is at the level of local (i.e. metropolitan area) markets. The following two charts present a sampling of house prices in some major metropolitan markets…

…can be found with regional housing markets. The following graph shows inflation-adjusted house prices in several metropolitan areas over the past 30 years. Note: house prices are deflated by the…

…real gas prices are still lower than prices in the early ’80s. That is true, but current real gasoline prices are higher than after the ’73 oil price shock. Note…

…and leverage is increasing demand. The Bust Housing “bubbles” typically do not “pop”, rather prices deflate slowly in real terms, over several years. Historically real estate prices display strong persistence…

Oil prices are way down over the past couple of weeks. Today they hovered in the $41-$42 per barrel range, compared to a high of around $55/bbl in October. There…

…prices might make sense; and once you concede that asset prices might make sense, you lose the supposed evidence that rates are all wrong.” His logic depends on there being…

…and withdraw from the markets. Once market participants realize that prices have peaked, flight from the markets becomes widespread. As prices plummet, a period of “revulsion” or panic ensues. Those…

I wrote about how high house prices are correlaed with poor growth (partly because that which has gone up goes down). The data set was heroically collected by Jorda, Schularick,…