3. Household and nonprofit entity asset growth since 1988 (in current period $ trillions) $100 Real estate bubble “too hot” asset growth begins
$90 $80
“Great Recession” cuts values $12 trillion
.COM bubble “too hot” asset growth
$70 $60 $50 $40
2011 Q4
2011q2
2010q4
2010q2
2009 q4
2009 q2
2008 q4
2008 q2
2007 q4
2007 q2
2006 q4
2006 q2
2005 q4
2005 q2
2004 q4
2004 q2
2003 q4
2003 q2
2002 q4
2002 q2
2001 4q
2001 2q
2000 q4
2000 q2
1999 q4
1999 q2
1998
1996
1994
1992
1990
$20
1988
$30
If in 1988 someone setting Goldilocks “not too hot, not too cold” alarm levels might have used 5% as the low and 6% as the high, combining sustainable real growth of 2.5% to 3% with “normal” inflation of 2.5% to 3%. Today’s post recession asset values teeter at “too cold” levels after a 2nd dip.