Comments on: Home Sweet American Bubble Investing Pie: Lessons from the Great Depression Part XXIII: The Worst Housing Crash in American History.

By: Rebelyell

Rebelyell — Mon, 03 Aug 2009 13:43:30 +0000

>>Actually, there’s a lot of people who have proposed a price floor on oil prices. And there’s lots of good reasons for one.<<

The best reason for a price floor on oil prices is that price floors tend to operate as price caps. For example, if we set a price floor of $80 per barrel on crude oil, producers will know that they have a ready market at that price and will make long-term investments that they otherwise would not make.

Remember, twice in the past 20 years crude prices have dropped below $20 per barrel, forcing many producers out of business and forcing the capping of many producing wells. This oil production is often lost forever and the wells can’t just be uncapped. A price floor of $80 would likely increase production enough over the next 15 years to forestall major shortages. A floor of $100 would likely cause such a glut there would be no place to store all the oil.

By: surfaddict

surfaddict — Wed, 10 Dec 2008 19:47:39 +0000

stevejust
I disagree, there is NEVER a “good” reason to have price fixing on ANYHTHING.
Just cuzz YOU don’t like me smoking the tires in my 67 Camaro, and sitting at lights in my Crew Cab Dually doesnt mean I dont like it. Your artificial pricing works for you, but not for me!! I might be a bit delusional and idealist as far as free market economy goes, but i believe the little guy always gets the best product for the best price if you leave the market to function freely. I’ll buy a car that gets a million miles per gallon, if they build it. It’ll get built cuzz ill buy it. Why punish me in meantime? If you really wanted us “off” oil, wouldnt you encourage us burnnning more so we run-out sooner? I dont wanna hear the polution argument either, when was the last time any of us rode our bikes to work?

By: Jason

Jason — Wed, 10 Dec 2008 17:31:41 +0000

I got out of the crock market back in 2002 and got a fed gov job. All my assests are in FDIC accounts, treasury notes, gold and silver coins and ammo. Yep, I got cash on hand too as well as food, water, etc. I”m ready for my neighbors to turn into animals. And I’ve got Italian relatives to back me/us up. We died getting to Amerika and we will die to stay here as well.

Jason

By: PSPS

PSPS — Wed, 10 Dec 2008 05:01:57 +0000

As has been said here before, what’s the point in propping up housing prices when they’re too expensive to begin with? Nobody will buy except, perhaps, the Chinese who come here now on property-buying junkets.
~
A just-finished eight-unit condo project here has its 950 SF units asking $450K! $470 per SF? What a joke!

By: St Alphonzo

St Alphonzo — Tue, 09 Dec 2008 23:58:52 +0000

And it goes a lot further stevej. Does capitalism only work during bubbles? Uber-wealthy don’t usually invest–they speculate because it’s play money. It’s a game–they don’t’ care about collateral damage, obviously. The frightening thing is that we as humans are not getting more intelligent–just more arrogant. Like we all stayed at Hol Inn Express and think we’re friggin masters of all things economic. No, we are becoming less intelligent, less motivated, and more irresponsible. This Depression will possibly provide some motivation to get back to understanding our interdependence.