Thursday, January 03, 2008

More Frightening than the Average Rollercoaster

This video represents US house prices from 1890 to the present day adjusted for inflation and plotted as a roller coaster. The equivalent graph is given here. The question is "Where to next?"

The sub-prime crisis that has already started to affect US house prices is very well explained here. The article suggests that the the effects of the crisis are likely to play out over the next 2 years. Who was it that said that "When America sneezes the World catches a cold."?

What did I say about Happy New Year?