Gas and Home Prices: What a Difference Two Years Can Make

It was only four years ago that home prices were rising at the rate of 20 percent per year and gasoline cost less than two dollars a gallon, yet it seems like a distant memory.

When you think about the Hummer in its heyday back in 2004 and early 2005, this chart just about tells the whole story - home equity burning a hole in the pockets of millions of homeowners and being able to fill up a 33 gallon tank for about $50 or so.

Once the hurricanes struck in 2005 ... well, we all know what Hummer lots looked like after Katrina and Rita swept through the Gulf Coast.

 

Comments

[Maniac in Motion]

So funny, I was just thinking about that! Very cool chart.

[davethebrave]

Homage to the idea that anyone can afford anything they want - "just not all at the same time". Using the concept of deficit spending - in most cases - always result in negative earnings. Most people that are caught in the current housing /economic trap were simply operating with a false perception of value and really not planning for the future. The real blame can be summed in "short term gratification".

[WAKEUP]

Short-term gratification has now spawned long-term grief.

[GUY FOX]

People who bought Hummers thought they were buying $tatus and prestige. "Hey! Look at ME! ME! ME! See how big IT is!"

I can only laugh at them. Today... when I see somebody driving down the road in a Hummer... I think of fool and idiot. I could use far harsher epthets here to describe a Hummer owner, but the editors would probably censor it.