- 21 Sep 2018 15:11
#14947878
Indeed, this is also evidenced by the fact that homes lost about a 1/3 of their market value (as reflected in price) when the housing market crashed in 2008, which is manifestly a case where prices dropped in a relatively stable supply market. This price drop didn't happen because someone built one million too many homes, which is what @B0ycey 's argument would imply.
If anything, the drop in value (and therefore price) is what killed the supply as a consequence.
"It is when a people forget God that tyrants forge their chains. A vitiated state of morals... is incompatible with freedom."
- Patrick Henry
SolarCross wrote:You are forgetting the desire of the apple vendors for your money. What you are seeing as a "great supply" is to them a "small supply" because on their end of the negotiation the "supply" is your money. I don't think you understood what I said at all.
Indeed, this is also evidenced by the fact that homes lost about a 1/3 of their market value (as reflected in price) when the housing market crashed in 2008, which is manifestly a case where prices dropped in a relatively stable supply market. This price drop didn't happen because someone built one million too many homes, which is what @B0ycey 's argument would imply.
If anything, the drop in value (and therefore price) is what killed the supply as a consequence.
"It is when a people forget God that tyrants forge their chains. A vitiated state of morals... is incompatible with freedom."
- Patrick Henry