Cartoons
Prophetic Cartoon – Housing Crushes Economy
I created this cartoon in 2006. The following year marked the top of the real estate market, and as it turns out, the end of excessive financial leverage. In early 2005 I began studying the effects that the explosion of exotic loan products and the deterioration of lending standards were having on home prices. I wrote an essay (because I do things like that) about the real estate bubble that was brewing in the housing market later on that year.
Since then, I haven’t stopped trying to warn people about the inevitable collapse in real estate prices. My family made me sit on the porch during holidays, and friends would dart across the street into oncoming traffic rather than suffer through another real estate bubble rant. They were right in one respect – I was, and still am a crank. I’m not offended because I stuck to my beliefs even as they became more and more unpopular and unwanted.
Of course, I’m pretty ticked off that the real estate and credit bubbles (and pretty much all things financial) imploded, – it sucks for me, too. I sincerely hope all the affected markets find a bottom before we are all forced to barter for food and rub sticks together to make fire.
Have a pleasant weekend. And remember, when the jackasses who said real estate prices would never fall now trumpet that the world is about end, take comfort in the fact that they will be proved wrong once again.
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Tags: Cartoons, credit, credit crisis, credit-bubble, finance cartoons, housing-market, humor, real estate bubble, real-estate Discussion
2 comments for “Prophetic Cartoon – Housing Crushes Economy”
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When they are proved wrong….
When should those of us with a lil’ bit of non-invested cash begin purchasing stocks (after we drop below 8000?)….and in what? Smaller, regional or local banks? Auto companies with alternaitve energy plans?
PS. I didn’t notice before that the tree-economy has a little scared face!!
I think the market may have fallen a bit too far too fast – there were forced liquidation rumors flying about all week. But, the economy is going to suffer over the next few years due to the messy state of the finance industry. If you have at least a 5 year time horizon, it would make sense to put a portion of the money you’ve set aside for gambling into Exchange Traded Funds (ETFs), which are baskets of stocks. You can buy index or industry specific ETFs- although you’ll need a brokerage account because they trade like stocks. It is wise to avoid company-specific risk, that is why I like ETFs – and they’re easy to get in and out of. Go to amex.com to find out more about them. And, I would stay away from banks until the dust settles. (Many Regional and local banks made a lot of bad construction and development loans.)