Sept. 30 (Bloomberg) — House prices in 20 U.S. cities declined in July at the fastest pace on record, signaling the worst housing recession in a generation had yet to trough even before this month’s credit crisis.
The S&P/Case-Shiller home-price index dropped 16.3 percent from a year earlier, more than forecast, after a 15.9 percent decline in June. The gauge has fallen every month since January 2007, and year-over-year records began in 2001… –
Comment: We’re in the middle of a major reversal: over the past decades, we had asset inflation combined with consumer price disinflation. Now it is the other way round: we’re in the early stages of asset price deflation combined with consumer price inflation.