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[Getting Graphic] Mood Swings And Hard Landings

Getting Graphic is a semi-sort-of-irregular collection of our favorite BIG real estate-related chart(s).

Source:WSJ


In a particularly sobering outlook for the economy and housing, Mark Whitehouse makes some interesting points on the argument for a hard landing in housing [WSJ] [1]. The “aftermath” of a soft landing if you will. In other words, what happens next?

The boom has depended heavily on the upbeat psychology of consumers, builders and lenders. As moods swing, the landing could be very hard indeed.

“We could be underestimating the dark side,” says Mark Zandi, chief U.S. economist at Moody’s Economy.com and among the first to seek to quantify the housing boom’s broader effects. “Euphoria could turn into abject pessimism very quickly.”

The argument for this greater pessimistic view point is the idea that we have no prior track record of similar behavior:

Which brings to mind the question: How will the consumer react?