tag:blogger.com,1999:blog-4900303239154048192.post828053351539897303..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: Drop in Housing Values and Consumption DemandUnknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4900303239154048192.post-30281079598386726602008-12-17T02:43:00.000-05:002008-12-17T02:43:00.000-05:00Interesting post pgl and I need to ask some simple...Interesting post pgl and I need to ask some simple questions here to wrap my head around the magnitudes of the boost you (and me too) think we will need from government spending.<BR/>Leaving alone the assumption that a $1 GDP decline leads to a $0.05 decline in consumption, would it B worthwhile to measure the recent performance of GDP and house prices, say from 1990...note the lag, consumption/GDP, housing related consumption/consumption and get a range of values and possibly a trend for this..instead of your ballpark $0.05? <BR/>Secondly, given the revaluations in the Finance sector, is there a way to back the previously registered GDP values to the new, and lower values? Or izit just built in: wealth creation is fine, but wealth destruction is heresy?<BR/>Thirdly, and lastly for now, does the distribution of wealth impinge on this relationship, no matter how accurately we wish to pin down $1 GDP loss causes $X loss of consumption? If the GDP decline is due to a wealthy few houses burning down does that result in more or less decline in consumption than a thousand cheap houses? <BR/>Ok, keep up the good work.Anonymousnoreply@blogger.com