THE CREDIT CRISIS: AN ECONOMIC ROLLERCOASTER RIDE RICK TOBIN
eemingly every financial implosion time period of the past one hundred (100) + years here in the USA
was due to the combination of a “boom” economic time period, subsequently followed by an economic
“bust” time period. During the “boom” or prosperous economic time periods such as “The Roaring 20s”,
the availability of capital was much more flexible as related to easier real estate, stock margin, or
business loan options at the time.
The availability of capital is typically the number one driving force behind a “boom” or “bust” time period as it
relates to real estate cycles. “Easy Money” time periods such as “The Roaring 20s” and “The Sub-Prime / “EZ
Doc” Mortgage Era” (2002 to 2007, approximately) were both prime examples of economic “boom” eras,
which preceded economic “busts” such as The Great Depression (1929 – 1939), and the ongoing “Credit
Crisis” (www.thecreditcrisis.net).