Thursday, October 15, 2015

Quote of the Day

October 15, 2015
Investopedia: Effect of Fed Fund Rate Hikes on the Housing Market

With inflation rates and housing prices making up 30% of the consumer price index (CPI), they are the most significant factors in terms of whether mortgage rates increase in the future.

1. Some might argue that inflation rates do not make up any of the consumer price index since the consumer price index is a price index and not an inflation rate index. Of course, you can calculate an inflation rate by using the data in the index. That's not the same thing though. This is all just a technicality that novice hecklers might dwell on.

2. Some might argue that inflation rates make up the full 100% (not just 30%) of the inflation rate calculated by using the consumer price index data. Some might therefore even ask what the other 70% would be if it isn't related to inflation rates. This is a more serious problem that advanced hecklers might focus on.

3. Some might argue that house prices make up 0% of the consumer price index since house prices aren't included in it, only the rental prices of housing (which is clearly not the same thing). This is the realm of expert heckling. It takes a keen understanding of the CPI to dwell on this major flaw.

4. Some might argue that I am a complete idiot for continuing to read these articles day after day when they just keep repeating the same things over and over. We know there will be another article just like it appearing shortly that will tell us all we would want to know about how changing interest rates will affect us. This is what a master heckler would tell us.

Why do I do it? I have no idea. It certainly isn't because I expect to read great advice. Perhaps the clickbait links are most effective when there is something to be heckled within them? Perhaps it is targeting me? The more silly articles I click on the more silly articles are generated? Perhaps it is by design and I am like the lab rat in a maze? Could be. Seriously.

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