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
In two consecutive tweets you're arguing that building housing destroys value and not building housing destroys value ?
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Building houses people want creates value; building houses they don’t destroys it. The housing boom was concentrated in areas and at prices where the houses were not appropriate to the needs of the people who’d consider living there.
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