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Posted by Andy B
on 11/5/2009, 4:01 am, in reply to "Re: The ultimate cream puff: First Model Year Car"
71.72.69.164
Adam Smith would disagree. The value of a thing is what it will bring.
Of course, I'd argue that way of thinking led to our current economic woes. A house is only worth market value if you're going to sell it. It's worth the value of rent on a similar house, plus some coefficient of you getting to own it. Extreme disparity in the two numbers would cause you to sell it, and reap the rewards. Instead, we used "market value" to give us an excuse to spend money we didn't have. Then, when the market value went into the crapper, we forgot that there is a real value to owning a house, and just defaulted on the damn thing. Adam Smith, you can suck it.
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