Land Speculators

Land Speculators - Land Speculators 10/22/2009 Land...

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Land Speculators 10/22/2009
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Land Speculators What is a Speculation? “A financial action that does not promise safety of the initial investment along with the return on the principal sum. Speculation typically involves the lending of money or the purchase of assets, equity, or debt but in a manner that has not been given thorough analysis or is deemed to have low margin of safety or a significant risk of the loss of the principal investment.” - Graham & Dodd, Security Analysis
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Who Are Speculators? Land Speculator “Actual Settler”
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Davis Home Prices - From Zillow.com Land Speculators
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Las Vegas Home Prices - From Zillow.com Land Speculators
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Land Speculators
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Pros 1. Encourage / Discourage Consumption in Response to Information 2. Liquidity in Markets Cons 3. Prices can Deviate from True Value if Information is Wrong 4. Economic Bubbles Land Speculators 1. If a refinery is destroyed, the price of gas goes up, leading to decreased consumption, lessening the impact of the shutdown. 2.
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This note was uploaded on 11/05/2009 for the course ECON 111A taught by Professor Wilson during the Fall '08 term at UC Davis.

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Land Speculators - Land Speculators 10/22/2009 Land...

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