The more you pay for sex, the better the economy
Riga, Latvia, 19 July 2009. The Latvian Hooker Index is not showing any signs that the economy is on a rebound. Prices still linger at around US $60, showing signs of deflation and a general slump in the Baltics.
The price of Latvian prostitutes, along with the number of extramarital affairs happening have both been proposed as accurate indicators of economic health there, though this could apply anywhere in the world.
According to economists, "animal spirits" play a considerable part in the inner workings of the business cycle. This may be part of the reason business cycles have always been so hard to predict.Previously:
John Hempton, from Bronte Capital, suggests that the price of prostitutes in Latvia is a good barometer of Baltic economies and their overall wellbeing.
"The contractual terms of prostitution are short (an hour, a night) and entry to the industry is unconstrained," he says. "That means that the prices are very flexible."
This price flexibility is essential to mirror the economic bigger-picture, as it can change overnight.
Prices have slumped about two-thirds in the past year or so, and deflation looms in the Baltic region. This index seems valid and accurate so far.
Another similar way of measuring economic conditions is by looking at extra-marital affairs. The people doing this are www.illicitencounters.co.uk.
This site facilitates such encounters, and has more than 300,000 members.
"It has to do with people's confidence levels," says Rosie Freeman-Jones, a site's spokesperson. "When the markets are up, they think they can have an affair because they feel they can get away with anything. When the market hits the bottom, they are looking for a way to relieve the pressure."...MORE
Latvian Hookers Signal No Recovery for Economy
Here's Bronte Capital:
On a more positive note, I researched this Sunday Telegraph story in depth:
Blondes march in Latvia 'to cheer-up nation'
Apparently I am not the only analyst focused on this area:
The first-ever blonde parade featured women dressed in pink and white
Photo: AFP/GETTYLed by an orchestra, the first-ever blonde parade featured women dressed inpink and white, some accompanied by lapdogs, in a charity fund-raising event that organisers hope will become an annual event.......The parade was part of a "Blonde Weekend" which also featured a blonde golf tournament, a little lady fashion show, an evening ball, and a children's drawing competition."It's a great time to spend in the parade and contribute to a charity," said Ieva,one blonde spectator."Finally something different, something positive because I'm tired of hearingabout the crisis," said another, 70-year-old Ausma.The event attracted many locals and puzzled tourists....
RIA Novosti:
Latvian blonde parade to become annual event
Der Spiegel:
Blonde Parade Lifts Spirits in Gloomy Latvia
AFP: Blonde therapy lifts spirits in crisis-hit Latvia
Two blondes are pictured as they parade through the streets of the capital Riga
And many, many more. Just like the coverage of the NYSSA.Although the story is in a lot of places, I'll give the Hat Tip to Boom2Bust.
[so to speak? -ed]
*As I said in "Etymology of the terms Bull Market and Bear Market":
I know a Latvian philologist. She looks like Marina Orlova, the YouTube sensation (I seem to recall one of Ms. Orlova's videos getting two million hits.) I like it when she teaches me words....
