Skip to comments.
U-Haul Economics (California's Meltdown)
Marketwise Black Box ^
| 10/25/03
| Rick Ackerman
Posted on 10/25/2003 12:18:39 PM PDT by Cicero
click here to read article
Navigation: use the links below to view more comments.
first 1-20, 21-40, 41-46 next last
Here's a reality check on Gray Davis's handling of the California economy. The numbers are astonishing.
1
posted on
10/25/2003 12:18:40 PM PDT
by
Cicero
To: Cicero
Mexico City to Los Angeles, FREE.
To: Ernest_at_the_Beach; RonDog
Ping
3
posted on
10/25/2003 12:22:35 PM PDT
by
Cicero
(Marcus Tullius)
To: Cicero
The numbers are not only astonishing but simple to understand.
Thanks for posting this.
4
posted on
10/25/2003 12:23:51 PM PDT
by
Mears
To: LibertyAndJusticeForAll
Well, no. If you did an economic analysis, you'd almost certainly find that Mexicans are willing to pay substantial sums to be trucked like cattle into California, whereas the going rate the other way is relatively small.
It's only free when they get there, which indicates how government tries to distort market forces--until it goes bankrupt.
5
posted on
10/25/2003 12:25:42 PM PDT
by
Cicero
(Marcus Tullius)
To: Cicero
Not to burst the bubble but the reasoning behind the pricing is based on the unit's chance of return.
The COR (chance of return) is based on two factors. Population and changing demographics.
In the case of California population is the chief factor. There are simply so many more people in California than Washington, Oregon, Idaho or Nevada that the odds of a prompt return are low. Even if a similar percentage of populations in the periferal states were changing demographics you'd still end up with the units all stacked in the periferal states.
To: Cicero
Having recently rented a U-Haul that appeared to be older than me I wouldn't give 10 cents for one going anywhere.
7
posted on
10/25/2003 12:33:28 PM PDT
by
Straight Vermonter
(We secretly switched ABC news with Al-Jazeera, lets see if these people can tell the difference.)
To: Amerigomag
Also, the rates don't just reflect the difficulty of keeping U-Hauls in California, but the value of keeping a U-Haul in Califormia. The intrastate U-Haul business in populated states so dwarfs the business in Las Vegas or Boise that having a trailer/van sitting out there is a pointless drain of capital.
To: Cicero
You're right, I forgot that the coyotes charge a very high fee.
To: Amerigomag
Exactly..LOL...
I wonder why this Chicago economist didn't look at the price of homes, and how fast homes are bought when they go on the market in Cal. He should have looked at the low inventory of existing homes for sale. Most realtors would kill for listings, as the percentage of people looking to buy are far greater than existing homes that are avaiable.
Of course some here will tell us that it's the illegal aliens that are buying those $500,000 (and up) homes.
:o
10
posted on
10/25/2003 12:38:21 PM PDT
by
Joe Hadenuf
(I failed anger management class, they decided to give me a passing grade anyway)
To: Amerigomag
However you figure it the numbers can only show that more uhauls are leaving than entering. California is losing settled people- those with possessions. It is no different if the surrounding states are heavily populated or not. We are not measuring change relative to these other states at all.
11
posted on
10/25/2003 12:38:31 PM PDT
by
arthurus
(When the other shoe drops, look out for the cleats!)
To: Thud
You will find this very much of interest.
To: Cicero
You can check out any time you like. But you can never lee-ee-eeve.
I got out in 1999.
To: ModelBreaker
I beat the rush - I left in 1993.
14
posted on
10/25/2003 12:56:18 PM PDT
by
coloradan
(Hence, etc.)
To: LibertyAndJusticeForAll
There are other factors at work here.
It occurred to me that it wouldn't cost $900 (or even half of that) to hire someone to drive a U-haul from Las Vegas back to LA, empty.
So why the $900 difference between rates? Has to be supply-and-demand, the trucks are so in-demand in LA that they can charge whatever they like and someone will rent them.
It's an insight into the tremendous volume of evacuees.
15
posted on
10/25/2003 12:59:02 PM PDT
by
ZOOKER
To: msdrby
ping
16
posted on
10/25/2003 1:00:20 PM PDT
by
Prof Engineer
(FreeRepublic, Jim Robinson's evil plot to take over the world with information addiction)
To: coloradan
I beat the rush - I left in 1993.Ouch.
Your home you sold probably doubled in price just since 93....They are now bringing above full price offers.......
Yowza...
Regards.....
17
posted on
10/25/2003 1:02:17 PM PDT
by
Joe Hadenuf
(I failed anger management class, they decided to give me a passing grade anyway)
To: Cicero
Interesting.
To: Cicero
Sounds like it would be cheaper (if a little less convenient) to fly to Las Vegas or Phoenix and drive a U-Haul to California and back, thus making it a local trip.
19
posted on
10/25/2003 1:06:08 PM PDT
by
TenthAmendmentChampion
(Free! Read my historical romance novels online at http://Writing.Com/authors/vdavisson)
To: Russian Sage
Your point is well taken, but if those moving to California overwhelmed the number leaving would not the rates be reversed for the same reason you proposed?
20
posted on
10/25/2003 1:09:43 PM PDT
by
monocle
Navigation: use the links below to view more comments.
first 1-20, 21-40, 41-46 next last
Disclaimer:
Opinions posted on Free Republic are those of the individual
posters and do not necessarily represent the opinion of Free Republic or its
management. All materials posted herein are protected by copyright law and the
exemption for fair use of copyrighted works.
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson