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10 August 2004 @ 02:37 pm
Ever heard of a volcano?  
I just switched on the TV for a sec, and saw Oprah talking to Donald Trump.
They started talking about how they both like investing in real estate because it is a physical asset, as opposed to the "piece of paper" you get with stocks.

Then Oprah said she liked investing in land because "God's not making any more", that beach-front land in Hawaii is a great investment because "God's not making any more". Okay, in financial terms she's pretty well correct, at least assuming a normal human life-span. However, it is highly amusing that she chose Hawaii as her example.

The Hawaiian islands are a chain of islands formed by a sub-oceanic volcano. Basically, the continental plate is moving over a pocket of magma, and from time to time this magma explodes, spewing lava into the sea. This lava cools to form rock, becoming an island. Because of the movement of the continental plate, the island moves away from the magma, and the next time it explodes a new island is formed. That's how you get a chain of islands like Hawaii.

Therefore God (or if you are an atheist, the Earth) is making more land in Hawaii. It's an ongoing process. When you think in geological time-spans instead of measly human life-spans, the world is an ever shifting place, with islands, and even continents, being created and destroyed.

I guess that doesn't have too much impact on real estate prices. Except of course for the threat of volcanic cataclysm looming over the Hawaiian islands.
Mikmareth_redorb on August 9th, 2004 09:58 pm (UTC)
Volcanoes and real estate....
There was an article on www.abc.com.au in the news just in section about a US scientist trying to generate funding to watch an active volcano on the African coastline, as it has begun sinking into the sea and if it happens to erupt in a certain way (which from the article appears to be likely, take any article with a grain of sensationalism of course) the resulting tsunami's will probably wreck the US eastern seaboard and the Carribean. They didn't really mention what would happen to South America, I'm assuming they just don't particularly care.
Jacobyak_boy on August 9th, 2004 10:53 pm (UTC)
Re: Volcanoes and real estate....
I'll use that particular grain of salt on my chips, thanks.

Sounds interesting, though.