5 ms·
Are there people treating food as an appreciating asset?
by remexre 5y ago
Are there people treating food as an appreciating asset?
- thegrimmest 5y agoSure there are, food is traded on commodities markets just like everything else.
- xboxnolifes 5y agoWhich works nothing like the housing market.
- nmfisher 5y agoIf government policy was designed so that the price of food was outstripping income growth, that would definitely be a problem.
- thegrimmest 5y agowhy does the outcome have to be due to the design of government policy? Why can't it just be a consequence of the free interaction of people?
- imtringued 5y agoBecause everyone told me to blame the government.
- nmfisher 5y agoBecause government policy heavily influences the price of housing, which is an essential good?
- reducesuffering 5y agoBecause the government: 1. Manipulates interest rates directly affecting house prices 2. Changes tax rates depending on housing (mortgage interest) 3. Buys mortgages 4. Zones areas which can restrict or increase supply based on policy. Yes, if they didn’t do any of these, people wouldn’t blame government policy and we’d see what a functioning market results in.
- Adrock 5y agoSorry, but that's not how commodities markets work. Commodity futures are not appreciating assets and neither are the commodities themselves. The contracts have expiries and are not long-term stores of value. Just because something is traded doesn't make it an appreciating asset. In the case of commodities, they're typically traded as risk management instruments, not something that inherently provides returns.
- waynesonfire 5y agoI dunno, but Bill gates is buying a lot of farm land.
- Y_Y 5y ago> This year I invested in pumpkins. They've been going up the whole month of October, and I've got a feeling they're going to peak right around January and BANG! That's when I'll cash in! ("Homer vs. Patty and Selma", Simpsons S06E17) H. J. Simpson was doing this back in 1995, though to be fair he was in futures, rather than the raw asset.