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| I wish to apologize for my misleading remark by Commander Tansin A. Darcos 11/18/2015, 5:17pm PST | ||||
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Commander Tansin A. Darcos wrote:I wish to apologize for the above misleading title. Had I annotated it, it would have read "The pricing of houses here as quoted by the other poster is roughly correct for current market values." I was not trying to say that prices are what they should be, however, houses sell in a free market where they are priced according to the three rules of real estate: location, location, location. A house, absent some special consideration, is priced relative to the prices of similar houses in the same neighborhood. If a house is placed on the market at too high a price, it sits there until the owner either accepts a more reasonable price or lowers the price to comparable prices for similar properties in the same area. Now, market factors can change this, so a 3 bedroom house in a depressed area (currently Phoenix, Las Vegas, Mississippi or Alabama) might cost 1/3 of what a one bedroom condo in San Francisco or 1/10 of a similar condo in Manhattan even though the much more expensive properties might not even be similar or might even be worse. So, on second thought, I take back my apology. If you think housing prices are too high, blame the government for inflating the currency to worthlessness. If the dollar becomes worth less in purchasing power, prices go up to compensate for this loss of purchasing power. You want prices of things to stop being expensive? insist that your legislators in Congress return to a precious metal standard for the dollar, balance the budget each year, and pay off the debt. This, of course, would be politically impossible since the only place to get enough money to do this even with drastic cuts in non-entitlement and military spending (cut entitlement spending and the seniors arrive in Washington with torches and pitchforks ready to string up their Congresscritter and/or vote them out of office) is to raise taxes on rich people, and the so-called pledge not to raise taxes the Republicans gave to Grover Norquist scares them that they'd be voted out of office for breaking their promise. Someone has to pay for all that deficit spending that is not covered by taxes, and that is by inflation reducing the value of currency. Hell, it could be worse; if the Chinese weren't taking all those dollars for the stuff we import from them the deficit would be even more. Or as the comedian Gallagher (he of the "Sledge o'Matic") said, "Be glad the Arabs are taking American dollars for their oil instead of something valuable." |
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