Sunday, October 02, 2005

Economic Rationalism

MyWay News
But what Katrina spared, the real estate rush now imperils. The arrival of speculators threatens what's left of bungalow neighborhoods that are among the Gulf's oldest communities, close-knit places of modest means where casino workers, fishermen and their families could still afford to live near the water.

Many, underinsured and with few alternatives, see no choice but to sell.

"It's the oldest part of Biloxi, full of old families. This was a place they could still afford to come to and settle," said Bill Stallworth, a city council member who represents much of the area. "Now that's being taken away."

It doesn't take much for a property owner in those neighborhoods to attract prospective buyers. A call to a real estate agent fetches bidders the same day. A for-sale sign in the yard is almost as good. In some neighborhoods, owners can wait for unsolicited offers from people who show up at their doorstep.

The forces of destruction that Katrina brought to the Gulf Coast are now being mitigated, some might say, by the speculators who followed in her wake with money for those who had none.

I couldn't help but see the parallels to the situation here.

Economic rationalism strikes again. Emphasis added.

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