Was ice cream at the root of the financial crisis?

The conventional wisdom is that a massive housing bubble (and all of its attendant excesses) caused the financial crisis of 2008.  I have my doubts.

It’s more likely we had an ice cream bubble.  In 2006 U.S. ice cream production reached its peak of 914.7 million gallons, according to the USDA.  Production then began to plunge, continuing its downward spiral in every year since.  In 2011 it stood at a meager 799 million gallons.

If this isn’t a market bubble, what is?

Is it a coincidence that home prices began their slide shortly after ice cream production fell off a cliff?

Case-Shiller U.S. Home Price Index

 

 

 

 

 

 

 

And then we had a financial crisis.

Think twice before you eat that bowl of ice cream.  Your indulgence may be planting the seeds of the next economic upheaval.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s