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?
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.