- Rent gets cheaper when housing prices fall. That's a redistribution of wealth from the rich to the poor.I also like Scott's use of trends (evaluating every issue in context of similar situations). God bless this man for moving away from poop jokes:
- While it will be harder to get a mortgage for an $800K house, that house is only worth $500K now. That should make it a lot easier to qualify.
- Gas at $4 per gallon is a necessary condition for creating the next economic boom: renewable energy and green technology.
- A good recession now and then is necessary to purge the economy of things that need purging.
- College students are starting to choose technology majors over finance majors, probably because of the financial headlines, and this bodes well for the future.
And allow me to leave you with a pinch of optimism, just because I can. I call it Adams' Rule of Obvious Calamities. It states that any calamity that is foreseeable by the public at large won't turn out so bad after all. The best recent example was the Y2K problem, where computers worldwide were expected to fail. It seemed impossible that those issues could be resolved in time, but they were.The Credit Crunch Explained (Scott Adams)