abraham lincoln abraham maslow academic papers africa aging aid alexander the great amazon america android os apple architecture aristotle art art institute chicago astronomy astrophysics aubrey de grey beck beer berlin bernacke bicycle BIG bill murray biophilia birds blogs bob dylan books bourdain brewing brian wansink buckminster fuller bukowski cameras cancer carl jung carl sagan cemetary change charter city chicago china christmas church civil war climate change cologne construction coop himmelblau copenhagen cornell west cps craigslist crime crown hall cyanotype cyrus dalai lama darkroom data dbHMS death design build dessau detail Diet dogs dome dongtan douglas macarthur drake equaation dresden dubai ebay eco economics economy education einstein emerson emily dickinson energy experiments facebook farming finance finland florida food france frank lloyd wright frei otto freud frum funny furniture games gay rights gdp george w bush george washington germany ghandi glenn murcutt goals good google government graphic design guns h.g. wells h.l. mencken hagakure halloween health health care henri cartier bresson herzog and demeuron honey housing human trafficking humanitarian efforts hydroponics ideas iit indexed india industrial design industrial work internet investments japan jaqueline kennedy jim cramer john maynard keynes john ronan john stewart journalism kickstarter kings of leon kittens krugman kurt vonnegut kurzweil lao tzu law le corbusier ledoux leon battista alberti links LSH madoff malcolm gladwell marijuana marriage masdar city math mead medicine microsoft mies van der rohe military milton friedman mlk money movies munich murphy/jahn music nasa nervi neutra new york nickel nietzsche nobel prize norman foster nsa obama occupy open source paintball palladium print paris parking party passive house paul mccartney persia philip roth philosophy photography picturequote pirate bay pirating plants poetry poker politics portfolio potsdam predictions prejudice presidents process photos prostitution psychology public housing q and a quotes rammed earth randy pausch reading reddit regan religion rendering renewables renzo piano restaurants revolution richard meier richard rogers robert frank rome rubik's cube rule of 72 rumi san francisco sartre sauerbruch hutton saule sidrys schinkel school science screen printing seattle sesame street seth roberts sketch social media soviet sparta spider spinoza sports stanley kubrick stanley milgram statistics steinbeck sudhir venkatesh suicide sustainable design switzerland taxes technology ted teddy roosevelt tension terracotta tesla thanatopsis the onion thomas jefferson thoreau time lapse tommy douglas transportation travel truman tumblr unemployment urban design van gogh venezuela vicuna video video games wall street war werner sobek wood woodshop woodworking ww1 ww2

29 March 2009

Interesting Charts

As an odd point of clarification that has almost nothing at all to do with this post; when I took economics classes in college we never really discussed political views regarding economics. Things like "The Chicago School" of economic thought and free market versus socialism were really just never discussed. I suppose we did talk a bit about government intervention. Mostly we figured out how changing one variable in any given situation would trigger a change in other variables. On tests we would be expected to know how to "create an economic story" and show the changes graphically. Most of it was just studying the history of economics which is really like... the last 100-150 years. I'm sure economists will be better prepared for future crisis's in the next 100 or 200 years when they have better data. Then again by that time I'm sure computers smarter than our (current) selves will be running the show (another subject I know).

Here's a typical page of my notes... don't worry, they're confusing to me (now) too. These 3 charts, that are really one, has to do with floating currency.

This is interesting just because I consider myself to be somewhat "informed" in terms of economics and what not yet was unaware at just how much the various indexes have lost in value. Aside: look at the REIT's (real estate investment trusts) in pink!

This is interesting on several levels. The red line in the center gives the inflation adjusted cost of buying a home. Thus, if you purchased real estate in 1979 it's worth about the same as what it's worth today plus inflation... think 3% a year. This of course isn't the case if you bought in a "hot" area where prices increased dramatically. There are positives (tax deductible interest payments, you get to live there, one of the few investments that's protected from inflation) and negatives (upkeep, generally poor appreciation, highly illiquid, and high transaction costs if you sell) to owning a home, but it is worth mentioning that it isn't a crazy idea to rent and invest the excess money you would have been paying on a mortgage. Then again, in a country with a (previously) negative savings rate, who has the will power to do such a thing?

No comments: