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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (16676)	2/4/2004 6:43:06 PM
From: JBTFD	Read Replies (2) \| Respond to of 306849

Re <bleeding ALWAYS stops> I was listening to the radio, they were talking about this and one caller suggested that the bleeding will stop once we have attained equilibrium salary-wise with the rest of the world. That's a sobering thought.

To: patron_anejo_por_favor who wrote (16676)	2/5/2004 2:42:33 AM
From: Oblomov	Read Replies (1) \| Respond to of 306849

What do you mean, "we"?

To: patron_anejo_por_favor who wrote (16676)	2/5/2004 1:52:45 PM
From: gpowell	Respond to of 306849

The pain will not end if salaries equilibrate, since resource use decisions are based upon opportunity costs. Therefore, regions will specialize in the products where they are most efficient. This holds even if one region enjoys an absolute productivity advantage over another region in a shunted industry. In other words, workers in a relatively unproductive industry, even if they are more productive than the rest of the world, will find that their industry will lose share to other regions. Thus, on the local level, the industry will stagnate or shrink. This will occur whether or not our standard of living is rising or declining, but, in fact, would be more highly correlated with a rising standard of living. Silicon Valley is a perfect example - since it still contains some of the best agricultural land in the world. But, why grow plums when you can make 10x more by selling your land to apple computer.