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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (78874)	5/7/2008 7:46:22 PM
From: benwood	Read Replies (2) \| Respond to of 116555

That actually sounds like what I said -- condo builders have "one supply of condos" so to speak. A homeowner has one supply of homes, too. It's just an all-or-nothing proposition if selling, and then the homeowner is left with the problem of where to live. That doesn't sound at all like an oil producer situation to me. I do see correlation between an oil producer and any entity that holds an actual supply of homes/condos, e.g. a builder with 100s or 1000s, namely that a fraction of supply is sold off periodically, and holding back supply (via higher prices) can eventually lead to lower return (e.g. the bubble popped and prices went way down. When condos/homes were in short supply (compared to demand) then prices just kept going up and up. Kind of like oil today.