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You may be surprised to learn that investment vehicles act like normal goods, too. They respond directly to supply and demand.
by ktRolster 10y ago
You may be surprised to learn that investment vehicles act like normal goods, too. They respond directly to supply and demand.
- st3v3r 10y agoBut if you buy an apartment as an investment, and just sit on it, you're not doing anything to affect the price of housing, nor anything to help the housing crisis.
- ktRolster 10y agoBut if you buy an apartment as an investment, and just sit on it, you're not doing anything to affect the price of housing You are definitely affecting the price of housing by doing that
- st3v3r 10y agoYou're right. I should have said, "You're not doing anything to help lower the price of housing."
- mrec 10y agoDemand for normal goods goes down when prices rise. Supply of normal goods goes up when prices rise. Neither is consistently true of housing in the markets we're talking about.
- ktRolster 10y agoNeither of those is consistently true of any product, you are doing it wrong. Drawing supply and demand curves as a straight line is the economics equivalent of a frictionless surface, or a perfect sphere.