Concern about inflation remain misplaced when the value of the key asset for consumers has deflated to 2004 levels.
Floyd Norris had a good article in yesterday's NYT business page pointing out that home prices are down 33%, according to the Standard & Poor's/Case-Shiller index.
Looking at the regional price declines reveals how broad the price drop is and how close this nation came to a depression on September 15th 2008 with the Lehmann bankruptcy.
Homes in Detroit are at 1993 levels;
Las Vegas at 1999 prices;
Phoenix, Atlanta, Minneapolis at 2000 levels;
San Francisco, Chicago, Denver at 2001 prices;
Dallas, Tampa, Miami, Boston at 2002 marks;
San Diego, Charlotte, Los Angeles at 2003;
and New York, Washington, Seattle, Portland at 2004.