Talk:2327: Oily House Index

Explain xkcd: It's 'cause you're dumb.
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Dangit Randall, this was my retirement plan & now everybody's gonna want to try it! ProphetZarquon (talk) 00:53, 2 July 2020 (UTC)

Negative Equity (owing more than the house is worth) shouldn't be an immediate problem under most circumstances. If the householder isn't actually wanting to move and can still afford the asked-for repayments then it doesn't change the physical situation at all. The bank has no problems so long as the household has no problems, as they ride over (temporary) pricing crashes and emerge the other side. It's when banks get nervous that the home'owners' might default and thus put pressures on them (e.g. 'negotiating' for unsustainably greater repayments or 'immediate settlement' of the unforeseen temporary deficit) that they could tip their so-called customer over the edge. And an increase of defaulting further suppresses house-prices (general availability of sell-quick homes by owners/bank and/or the reduced neighbourhood value around abandoned properties not sold nor (officially) lived in) to draw more agreements into the self-creating danger-zone. Of course it aint as simple as all that. And permanently being underwater due to coastal flooding, probably won't sit well with the actuaries behind your continuing loan if your property isn't in Innsmouth... 09:31, 2 July 2020 (UTC)


Can someone figure out where I went wrong here?
>The comic then applies dimensional analysis to this index: dividing $/sqft by $/bbl yields a result whose dimension is a linear measurement, which can be called length. 1 barrel is 5.6 cubic feet. The average price per square foot of a new single-family dwelling in the USA in 2019 was about 119 $/sqft, while the price of oil in mid 2019 was about $60/BBL or $337/cubic foot. Dividing gives 60/337 feet-1 or about 5.61 feet. (This doesn't match the value shown on the chart of around 15, so we have done something wrong here. :))
Thanks. Stevage (talk) 00:54, 2 July 2020 (UTC)

Since barrels are in the denominator, you have to divide by 5.6 to get the price per cubic foot. LegionMammal978 (talk) 01:00, 2 July 2020 (UTC)

Shouldn't area divided by volume be height, not length? It would also fit better with the graph. 03:41, 2 July 2020 (UTC)

For dimensional analysis, you don't care about the physical context of the units, just about the dimension they are associated with. Height is horizontal length, so it has the dimension of length. In the context of the comic this length can be interpreted as a height, but in another context, it could be a length in a different orientation. 04:16, 2 July 2020 (UTC)

Should we start a category of dimensional analysis comics: e.g. 687, 1707, 2312 --WhiteDragon (talk) 07:41, 2 July 2020 (UTC)