Mexican License Plates

Quote: Pacomartin

But this was like a Super 8, which are normally $59 to $69 jumping to something like $700. There were three conventions in town at one time. The manager said that basically if they get one super rich person who will do anything rather than sleep in his car, it's enough to make their whole business quarter.

Someone needs a lesson in economics.

1) A thing is worth what people are willing to pay for it. A good or services that sells for more than that, will see lower sales than it might have.

2) Scarcity raises prices. A ten-fold increase seems extreme, but see point 1). If enough people are willing to pay such prices, then it's not extreme. Besides,

3) Higher prices help towards an even distribution.

This one's more complicated. Say there are a total of 15,000 hotel rooms in the resonable vicinity of a large convention or expo. If prices remained the same, then those booking early could snap up more rooms. For example,a company sending 12 people to a convention (not unreasonable if they will have a booth) could order 12 rooms, one for each person, or more likely 6 rooms. But if prices are high, even for early bookings, the company will likely pay for only 3 rooms,a nd cram 4 people in each. This leaves 3 to 9 extra rooms in the inventory for other people.

The same principle applies to hotels in evacuation routes/zones facing a natural disaster.

Quote: Nareed

Someone needs a lesson in economics.

USA is not a pure capitalist society, where the law of supply and demand is the only governing rule. There are laws that only permit so much gouging during special events. I am reasonably sure that the posted rate on the Super 8 hotel room is not over $700.

Quote: California Civil Code Section 1863

(a) Every keeper of a hotel, inn, boardinghouse or lodginghouse, shall post in a conspicuous place in the office or public room, and in every bedroom of said hotel, boardinghouse, inn, or lodginghouse, a printed copy of this section, and a statement of rate or range of rates by the day for lodging.

(b) No charge or sum shall be collected or received for any greater sum than is specified in subdivision (a). For any violation of this subdivision, the offender shall forfeit to the injured party one hundred dollars ($100) or three times the amount of the sum charged in excess of what he is entitled to, whichever is greater. There shall be no forfeiture under this subdivision unless notice be given of the overcharge to such keeper within 30 days after payment of such charges and such keeper shall fail or refuse to make proper adjustment of such overcharge.

Quote: Pacomartin

USA is not a pure capitalist society, where the law of supply and demand is the only governing rule. There are laws that only permit so much gouging during special events. I am reasonably sure that the posted rate on the Super 8 hotel room is not over $700.

I'd reconsider that statement in light of high unemployment levels and a recession that just goes on and on among bouts of anemic recovery.

Quote: Nareed

I'd reconsider that statement in light of high unemployment levels and a recession that just goes on and on among bouts of anemic recovery.

Not following your statement. Do you think I should reconsider the truth of the statement? Or are you suggesting that USA is purely capitalistic?

All I am saying is that normally it is not legal to charge whatever you can get. I was trapped in a hurrican once, and a local restaurateur was arrested for charging $10 for two pieces of bread with a slice of bologna.

Quote: Pacomartin

Not following your statement. Do you think I should reconsider the truth of the statement? Or are you suggesting that USA is purely capitalistic?

I'm asking how government meddling in things it doesn't comprehend is working out for you.

Quote: Nareed

I'm asking how government meddling in things it doesn't comprehend is working out for you.

In my opinion, the problem is not enough meddling.

The global financial crises was mostly caused by Bush deregulating the banks and Wall Street.

Quote: Wizard

The global financial crises was mostly caused by Bush deregulating the banks and Wall Street.

That's a common myth.

But please, don't let me stop you. Do list all the deregulation undertaken by Bush.

If a beat up old piece of tin was worth that much... I'd be counterfeiting Mexican license plates all day long.

Actually Mexican license plates are a perfect example of why Mexicans are so stupid. I recall walking along the streets of Greenwich Village and seeing all those Mexican plates on the back of cars. Stupid owners couldn't even install the plates correctly. Plates put on the rear of the car by the owner clearly said "Front".

Quote: Wizard

In my opinion, the problem is not enough meddling.

The global financial crises was mostly caused by Bush deregulating the banks and Wall Street.

You should have said, "Clinton," Wiz. Glass–Steagall, which I assume you mean by "deregulating" banks was repealed in 1999.

FWIW I work in banking and it is hardly a "deregulated" industry. There are a half-dozen laws we must deal with in just the mortgage area every day. Those laws regulate everything from how fast a decision must be made to collecting racial data on the borrower. If the borrower meets you face to face and declines to answer their race as the banker you have to guess.

We should not blame "Wall Street" as much as the American Consumer who wanted to buy houses with no money down then elected politicians who pushed for it to happen. The same consumer demands 10%+ returns on their IRA or they pull their money and go somewhere else. Wall Street in nothing more than the business of providing money to those willing to pay to get it. Just as the book at Caesars puts a price to take your action so does Wall Street. Just as the book manager tries to balance his action, so does Wall Street.

The prospective homeowner wants a mortgage. The retiree wants a stream of income to meet his needs over 30 years. Wall Street just puts these two together. The retiree is worried about the risk. A risk-taker is looking for some return. Wall Street then puts them together. Wall Street naturally charges a fee for these services, after all we are not communists.