Econ 101 teaches us that price is driven by supply and demand. If supply is short and demand is high, prices are high. Do you know that old saying, put your money where your mouth is? People don’t spend their money on things they don’t believe in. Said another way, people don’t pay millions of dollars for something they believe will be worthless in a few years.
If global warming is real, and everyone really really believes it is real, a tiny shack on the beach does not cost $2.2MM. A tiny shack on the beach is literally worthless, or at most, it’s only worth whatever value the buyer places on the few short summers he may have the use of it, before it and the whole town is underwater.
Oh, BTW this example is a cheaper one, and not even close to being on the beach, actually:
If everyone really believes global warming is real, this entire town is worthless. People would be selling for pennies on the dollar to get out now. If the elites really believed their Teslas were saving the world, Avalon would be a ghost town.
Keep this in mind when you read that the $740B “Inflation Reduction Act” making its way through Congress this week includes $369B to “fight climate change.” HERE.
That’s your money. They really hate you.
What beachfront property says about global warming
Global warming is a crisis no one believes in. At least, most people don’t believe in it. The market shows us that. More technically, people voting in the mortgage market with their money on balance do not believe in global warming.
Sure, I could have started this by pointing out, as many other observers have, that warmists ex-president Barack Obama and billionaire Bill Gates have recently bought low-lying beach properties. That certainly seems in conflict with what they claim to believe about global warming and rising sea levels. But Obama and Gates are human beings. We human being are often inconsistent. We sometimes support USC football and UCLA basketball. Some of us root for both the New York Yankees and the Dallas Cowboys. We sometime drink more than we know is good for us.
Another thing that is true about President Obama and Mr. Gates is they are not smarter and are not able to process more information than the rest of us who make up the market. As of now, interest rates on loans for beachfront properties are no higher than interest rates for loans on other properties, comparing first homes to first homes and vacation homes to vacation homes. Thus, all of us — i.e., the market — are not concerned that global warming will affect beachfront property values negatively in the next 30 years…
8 thoughts on “How to explain the myth of global warming to your Leftist friends, in two words”
Yep. Been saying for years that if it were true the elites like Obama wouldn’t be buying beachfront property. But this, the price, is even more convincing. Liars gonna lie …..
Saw this on a tweet….too bad liar liar pants on fire didn’t literally manifest.
And they are going to hire almost 90 thousand new IRS agents to make darn sure they get our money…
Heavily armed agents… making the IRS larger than every other agency combined.
Remember this? It’s on the way.
$2.2 mil for a 1000 sqft of “beach block” house in a place that’s a ghost town for 8 months out of the year. And they’ll have no problem at all getting the asking price. They’ll probably get more.
There’s actually something to the global warming thing and it’s related to Fatima
While in West Cape May NJ recently, I found a vacant lot with a For Sale by owner sign, and so I called to inquire about the price just out of curiosity. The lot was about 200×400, 1 mile inland, and on a street that has a rural feel with a mixture of some nice and some run-down homes. I was estimating a 500K pricetag. My jaw dropped when I was told the asking price was 1.6 million. I let out a little laugh and thanked the man for calling me back and I didn’t need to waste any more of his time. Crazy! No global warming in South Jersey!
It’s insane what’s happened to property values down there. My brother bought two condos just off the boardwalk in Ocean City in the early 90s for $60K each. Parlayed those into a beachfront mansion in San Diego, a house in Europe, and an early retirement.