Link: How We Spent

Bloomberg’s new Data View feature is quite compelling. A recent interactive visualization focused on [changes in consumer spending][bb] over the past 30 years. The most eyebrow-raising thing I noticed while looking over the various graphs was that almost all of them reveal a change in consumer spending about three years before the collapse of the mortgage bubble: some time between late 2005 and early 2006 consumer spending dips significantly and continues to dip until it bottoms out in 2008. I am not enough of an economist to know if this dip helped break the bubble or if it reveals that consumers were, in some way, aware of the bubble and already anticipating the trouble to come.


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