Is there a relationship between street-drug prices and financial markets?

Discussion in 'Economics' started by crgarcia, Sep 26, 2008.

  1. Sometime ago an article (can't find it now) mentioned that Freakonomics said something about it.

    Please no conspiration theories here, it just suggests that street prices for drugs are a measure of the broad economy.
  2. Probably some validity to that theory.
    I've heard from anonymous Fed. Law Enforcement sources that if we legalized drugs, our banks would surely fail.
    Another interesting theory that I"d like to see tested.

  3. how is that?

    drugs are legal in Holland and I don't see any dutch banks failing.

    also, pardon, but what the fuck do the law enforcement sources know about banking and economy?
  4. Drugs follow supply & demand just like everything else.

    Probably depends on the drug though, I bet crack, heroin, pills etc. go up in bad times (people losing their job and getting addicted) while coke and weed go down, with the reverse during a strong economy.
  5. It may be similar to booze. During bull markets, people are more willing to pay-up for more expensive booze brands, i.e. choosing Johnnie Walker Gold Label over Black Label or Hennessy XO over VS. During bear markets, people drink cheaper stuff on the bottom shelf for a quick buzz.