It is traded.

And we saw that.

And that caused housing prices to go up.

So we know that housing prices went up.

You know what happens at that point?

We've been talking about the law of demand and how if we hold all else equal, a change in price, price goes up, the quantity demanded goes down and the price goes down, the quantity demanded goes up.

If you expect the future price to go up and the good or the product in question is something that you can store, well, depending on how much you expected to go up, you're probably more likely to buy now buy before the price goes up.

So for example, let's think about Scenario, a Scenario 2.

Well, imagine we have other, say other ebooks' price goes up. WRlTING

So something very interesting is happening.

No, what happened to us, Chris, is that power, it's priced off the margin.

You can see this in the data.

Depression.

Now, we have this whole securitization,

look it's energy, not oil, which counts.

What do I mean by that?

And luckily for us, it is a fairly intuitive idea.

They want to encourage high volume purchases, and so they have stepped pricing that is oriented to create volume.

Now what would happen if these things changed ?

We can even say, from 2000 to 2006.

Let's look at these cases a little bit more carefully and figure out what's going on.

As expected, the price of imported goods rose.

The companies know that.

The price of rice rose by more than three percent.

And because housing prices went up, what did that cause?

Or maybe the price of a....the price of a Kindle goes up, WRlTING so the price of a Kindle...let me write it this way

I'd want to produce less.

And there is a little bit of a negative feedback, if price goes up.

If this thing changes, this is going to move the curve.

Demand for housing was going down.

And then there's this guy, okay.

And then there's finally there's the affordability question.

And if that money supply that's affected by all of those things grows faster than the total real productivity of the economy, then it will generally increase the level of prices.

How is spending going up?

It graphs the size of the house in square feet to the sales price in thousands of dollars.

Even that banana that you buy at the grocery store.

Well in this case I paid 100 for the bank account.

And this is very relevant to what's going on in the world today.

It's the best price that someone's willing to give you for something.

Now compare that with real price increments.

And just out of thin air, just by one person getting cheap credit and overpaying for something, everyone in the neighborhood thinks that they just got 900,000 of wealth, or at least in this example.

And I'm doing this just to show you a point

And you can think about why they haven't.

It is certain that the price of gold will go up.

So of course, what matters in a home?