National / International News
We have screens at the ready here to watch what happens when stock in the massive Chinese online commerce operation, Alibaba, starts trading in New York. Shares will start at $68, the top of the company's range. But while many investors are eagerly diving in, others are advising caution. Plus, as we've been hearing, the Scots have voted to stay with the United Kingdom, and this--among other things--has a bearing on interest rates. And as Marketplace celebrates its 25th birthday this year, we are looking at the surprising, sometimes delightful and sometimes destructive ways that prices have changed during that quarter century. Last week, we heard a classical definition of inflation from the Harvard professor who literally wrote the textbook definition. But price changes have many causes and can effect people with varying incomes quite differently. Today, we talk to Dean Baker, co-director of the Center for Economic and Policy Research in Washington.
Brunch reading list:
Washington Post: Federal Reserve details new exit strategy, keeps record-low rate
Online real estate site Zillow released a study on Friday that listed the markets for sellers and buyers in the United States.
Stan Humphries, Zillow's chief economist said the lists show an east/west divide.
Most of the best markets for sellers, says Humphries, are on the West Coast. Markets like San Jose, San Francisco and Seattle top the list. Most of the cities that favor buyers are in the east and midwest.
"Markets like Providence, Cleveland and Philadelphia. And it’s not necessarily by historical standards that they’re bad markets," Humphries said.
He said home prices in many of the buyers' markets haven’t risen as sharply, but that also means that when the market slows, home prices won’t crash as hard.
"You know a lot people think realtors are really excited about this hot market, and truthfully we’re not," he said.
Hamilton said right now, buyers are offering way too much for houses. While responsible realtors advise against such irrational behavior, he said, when the market slows and prices crash, clients don’t remember.
"Everyone kinda came back and said, 'Why did you tell me to buy this?'" Hamilton said. "You know, well, if you looked back at that day, we didn’t."
It's time for Silicon Tally! How well have you kept up with the week in tech news?
As Marketplace celebrates its 25th birthday this year, we are looking at the weird, delightful and destructive ways that prices have changed during that quarter century.
But first, let's take a ride...back to 1989.
Back then, the cheapest Accord sedan had just 98-horsepower, hand-crank windows, no AC, and retailed for $11,770.
A commercial for the popular automobile posits that maybe one day, someone will build a better car than the Accord...maybe.
Since then, improvements have been made, and the Honda Accord is currently the best-selling car in America.
But how has the price changed? And when you adjust for inflation, is it more or less expensive than back in 1989?
We checked in with Joe Ciaccia, general manager of Honda Manhattan, to see how much the car will set you back with today's prices. And as for how it compares to its 25 year old counterpart, the answer might surprise you.
Click the media player above to hear more on the surprising affect inflation has had on the Honda Accord.