[lbo-talk] "Save subprime borrowers, not bloated bankers" by Dean Baker

[ravi]

On 21 Aug, 2007, at 15:47 PM, Doug Henwood wrote:
> On Aug 21, 2007, at 3:24 PM, Jordan Hayes wrote:
>>
>> I don't get why you keep saying that a house beats inflation by 1%
>> over
>> the long term and then come to the conclusion that it's no way to  
>> "get
>> rich" ...  Give me 1% over inflation any old day!
>
> GDP averages 3.5% over inflation. Productivity, over the long term,
> about 2%. Stocks, around 7%. Houses are a real laggard.
>

Yes, but I cannot seek shelter, watch TV, host family, or go to sleep  
in/on my stocks (on the other hand, they do not require  
maintenance!). IMHO, one must not go too far in equating rationality  
with calculation, and assuming the former is reducible to the latter.

	--ravi