digginestdogg

Bill Gross Claims the CPI is Understated, But Is He Right?

Hedonic adjustments have no place in a quantitative cost index used in finance and economics--they belong in a qualitative quality of life index. How much time we spend washing clothes has nothing to do with purchasing power or inflation which is what the deflator is used for. That's why Mr. gross correctly calls it a con job. It is deliberate attempt, justified by poor reasoning, to hide the harsh reality that real wages are declining in this nation. Politicians, capitalists, and bankers don't like this to be widely known so they pressure for ruses to hide it. The same goes for excluding food and energy. The CPI has become a text book example of how to lie with statistics.

Bill Gross Wants A PIMCO Bailout

Yeah, great idea. Use my tax money to bail out the housing bubble gamblers who took out liar loans when prudent and fiscally conservative people didn't buy homes. So not only did prudent people not get a mortgage and home equity loan write-off and end up paying much higher taxes, but you suggest those higher taxes go to bailing out the fools who thought only short term and bought in over their heads.