re: confidence in u.s. economy sinks lower-abc/mon
Grant.
The price of property has a much bigger impact on sentiment as it represents the major asset of the majority of people. Any significant decline in house prices or rise in mortgage rates is bound to have a much greater impact than a rise or fall in equity markets, POG ETC.
The REAL rate of inflation depends on your lifestyle, age etc., as the CPI is based on a basket of commodities with various weightings. My wife is constantly telling me how much the price of food has risen! However, as long as labour costs are restrained I don't see any signifcant rise in the OFFICIAL level of inflation.
