The Epic American Credit and Bond Bubble Laboratory Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Crimson Ghost who wrote (75995)	12/18/2006 5:36:43 PM
From: mishedlo	Read Replies (5) of 110194

Prices depend on costs as well as demand. PRICE can be anything anyone wants it to be. Actual sales prices are different. Sales prices are determined by demand. Cost paid is simply irrelevant. What better proof than the current housing market. What people paid or what the "need" to get out of their house is totally irrelevant. All that matters is what someone is willing to pay (demand). Prices can rise all they want (but I will tell you they wont), but there will not be sales at those prices if demand is not there. This of course squeezes businesses into bankruptcy causing more layoffs and more falling demand and of course you know where that conversation goes. In short, you are the one that is wrong. Input prices are more or less irrelevant. If demand dries up it dries up just as it is doing with houses right now. Mish

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next