CRANES OVER MIAMI, PRE-2008 STOCK MARKET AND REAL ESTATE CRASH
When you have been around as long as I have, you start to notice patterns. Specifically, you learn that when something goes up too fast, it is usually followed by going down even faster. It is the law of physics. That law has been proven since man has been able to record events.
I lived in Miami during the crash of 2008. A couple of years before the crash, I would look out on the Miami skyline and worry. I worried, because my degree in Economics, and my understanding of the laws of supply and demand, told me that seeing 40 cranes over the city was the beginning of a real estate ‘over supply.’
Unfortunately, my fears were proven true and every developer, real estate attorney and investor I knew was suddenly crying poverty.
I am all for a rising stock market, of course, but when we see Dow increases of 200 and 300 points a day, consistently, we should be careful, because what goes up always comes down. If the market crashes, the only thing Trump can point to will also crash. And if that happens, suddenly all of the outrageous things he has said and done will be used against him, even by Republican members of Congress. Because let’s face it, Congressional Republicans always side with the person who can best ‘butter their bread.’