A thing I think is underappreciated: prices measure changes which have often already happened in the world. The change in price is not itself usually the event itself. (Speaking of prices for assets here more than for products.)
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For example, during the financial crisis, the value destruction wasn’t house prices falling, mortgages going under water, derivatives blowing up, or the bailout. These were all epiphenomena. The value destruction was society overallocating productive capacity to housing.
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(Certain cities in the US are currently engaged in a contest to see who can destroy the most value by illegalizing deploying productive capacity for housing, an event which also impacts prices, in the other direction.)
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Replying to @patio11
Could you restate that? There are too many negatives for me to make sense of it
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People want to live in places like the SFBA. There are insufficient homes there. Making enough to close gap is illegal. This destroys value (decreases net societal amount of the state of having things people want) but increases prices of homes in places like the SFBA.
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