UBS Ties Jump in Lunar Land Value To U.S. Housing
The Long and Short of Buying Property on the Moon
They say it's a sin not to take a sucker's money. So I'm pleased to report that real estate prices on the moon have skyrocketed 40 percent since the beginning of 2007, according the lighthearted analysts at UBS. As if unaffected by the subprime meltdown's gravitational pull, property on Earth's nearest orbiting neighbor has risen from $16 an acre in January to a high of $22.50.
"Our calculations suggest lunar land prices appear to be a reasonable lead indicator of U.S. house prices by around 12 months," the bank was quoted saying. "This suggests a trough in U.S. house prices may occur around the beginning of 2008." And while UBS states their "esoteric research" is in no way a forecast, moon real estate agents have seen a galactic bump in traffic since the news broke yesterday.
Sites like the Lunar Registry and Moon Estates sell plots in a variety of sizes to fit any budget. LunarLandOwner.com claims that as of 6:30 last night, "over 2,000,000+ (sic) people from 176 countries around the world own extraterrestrial property."
So if real money is changing hands over pieces of paper, is this really different than other equity trading? Sure the moon is untouchable for most citizens, but that might change some day, and the value of that possibility has been created through a speculative market.
The short answer is "yes" with a "but" the long answer is "no" with a "maybe."
In all cases these companies justify their "business" under the 1967 United Nations Outer Space Treaty which explicitly forbids any government from claiming or sovereignty over a celestial body such as the Moon. Individuals and private businesses, however, are not prohibited from exploiting the Moon. As such for the past few decades, creative entrepreneurs, such as Lunar Embassy "Head Cheese" Dennis Hope, have sold hundreds of millions of acres of lunar property. According to the BBC, buyers include "Hollywood stars, large corporations -- including the Hilton and Marriott hotel chains -- and even former US presidents Ronald Reagan and Jimmy Carter."
With such well known clients and millions of dollars in sales, in the short term moon real estate seems like a legitimate business. But the long term reality is that no government recognizes the validity of the plots being sold. In essence this creates an economic game of hot potato -- whoever is holding the deed when time runs out, loses. Moreover, and most of the "reputable" sites acknowledge this, the laws governing ownership of celestial bodies is subject to change at any time.
Despite this, business in "final frontier" real estate is booming. It is a testament to the human condition that people are willing to pour money into an intangible dream, the only real value of which comes when the owner looks up to at night sky and imagines a better future. Perhaps that is why the Lunar Embassy is run by a man named Hope.
By Emil Steiner | December 18, 2007; 1:55 PM ET | Category: OFF/beat
Posted by: trt | December 18, 2007 2:14 PM
This is like selling air. I can't believe that UBS is seriously advising people to invest in this kind of nonsense.
Posted by: Patty H | December 18, 2007 2:29 PM
To the moon! Dennis Hope is a carpet bagger of the worst kind. He bilked millions out of cash for selling nothing of value. Way to contribute to society. Says that he has no complaints. HERE'S 1!
Posted by: Keisha | December 18, 2007 4:25 PM
Space should be for everyone to enjoy, not just the privilaged or the rich but really everybody. Science is our first obligation and economics second
Posted by: Perry | December 18, 2007 10:45 PM
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The value of the moon is the H3 on it. Once the powers get wise to that then you can forget about claims you and yours might have.