Tuesday, November 16, 2010

Paging Paul Krugman 7: Diamond Sells for $47 Million

I'm sure Paul "I'm worried about deflation" Krugman will have no trouble explaining away this record breaking price, as another sign of deflation.
At auction, Sotheby's just sold by far the most expensive diamond ever. The rare pink diamond sold for $46,158,674 at a Swiss auction, according to the AP.

London jeweler Laurence Graff bought the 24.78-carat "fancy intense pink" diamond and immediately named it "The Graff Pink."

Graff bought the last record-setting stone back in 2008 for $24.3 million -- approximately half as much.

Gus Lubin, who wrote the story up for Business Insider, obviously doesn't have the fine nose for deflation that Krugman does. Lubin concluded his story:

You don't have to be an economist to see there's some inflation going on here.
Ahh, but Gus, if you were a Nobel Prize winning economist writing for the NYT, you would easily realize this is a sign of deflation.

No comments:

Post a Comment