Monday, December 3, 2012

TIME LAPSE: Presenting The U.S. Housing Bubble

This is a pretty cool video of the housing bubble. The one thing that would have made it more fun is if there was a graphic of Greenspan and Bernanke pumping up the bars with dollar bills and then Bernanke suddenly stopping in the summer of 2008, as the bars crash.





The creator is Nick Gogerty... via The Daily Bail

6 comments:

  1. Hmmmm..

    Dallas data problem early methinks.
    But cool demo. Picture tells a thousand eh?

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  2. So why are all the values flat in 2000? A house in Vegas cost the same as DC or San Francisco

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  3. Dear Robert, I mentioned this before: the way you embed videos for some reason doesn't allow them to show up correctly on windows phones. Any chance you could fix that? And if not, then can you please include links to the videos in addition to embedding them? Thanks!

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  4. this time around there was a link too... Sorry for jumping the gun!

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  5. Are you looking at the same video as me? Because in he video you posted, the bars started collapsing in 2006 and into 2007, shortly after the fed funds rate was raised, which required less inflation than otherwise.

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  6. MrP: The values are flat in 2000 because the creator normalized all housing values across different cities to $100 in 2000. He did this so we can see the relative increases and declines in housing prices relative to their year 2000 value. In other words, don't read the dollar values as actual dollar amounts. Read them as percents, with the year 2000 being at 100%. So when prices in Miami go to $275 (275%), for example, they've really just increased by 175% vs what they were in 2000, when they were at the $100 (100%) mark.

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