I think part of the point is to illustrate that we are not experiencing a temporary downturn.
A new base is being established in all matters economic - especially among "luxury" items.
The number of Lloyd Loar mandolins, Pre-war Martin acoustic guitars, and vintage Fender electrics that are languishing for extended periods without sale could be considered astonishing compared to the pace and price of sales in 2007. The Jeffries at the Button Box might also be relevant here.
Real Estate vales are depressed. Commercial development - even Dubai - is stagnant. Tourism has diminished significantly.
Even the ice makers for the shrimpers in Louisiana have closed their doors - due primarily to the oil gush.
All of this does, in fact, affect the price and pace of all goods bought and sold.
And the price and pace of 2007 - too often the hopeful point of reference when it comes to valuation - will not return for many years to come.
You are correct that it only takes one buyer and a seller for a transaction to occur.
But it requires many buyers to make a market; hence the demise of more upscale and specialty retailers in the last couple of years than can hardly be counted.
The current pace of the market is sluggish at best, and price is correspondingly suppressed.
I cannot think of anything - even oil, with the daily wasteful gushing in the Gulf - that is consistently more expensive today than it was in 2007.
I realize that supply and demand is at play here. But what drives demand - the desire for something accompanied by the capacity and willingness to pay the asking price.
My illustration is just that - an illustration of the economic dynamics that are being experienced globally.
Other references/benchmarks may be more useful, and my numbers may need to be tweaked, but the outcome will be consistent with my illustration.
My point is that the price and pace of the worldwide market has been significantly altered, and many - if not most - have not thoughtfully considered that the accelerated pace and elevated prices of the market just three years ago have left us and are not likely to return for a very long time.
My point, simply stated is that "things ain't what they used to be" ... and they're not going to be.
Edited by danersen, 05 July 2010 - 08:19 AM.