Don't worry I was also at first glance.
Basically what the chart shows is that although house prices in Manhattan NYC are appreciating in terms of US Dollars since 2000, they are actually losing value when measured against gold.
What does that mean? It means that the dollar is becoming worthless and real estate is losing true value in terms of wealth at the very same time.
We have reached a situation where we have an inflated currency but deflating home prices.
Stagflation has arrived.
Friday, January 11, 2008
Posted by Chris at 12:01 AM