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 A Picture is Worth A Thousand Words

A picture is worth a thousand words means a single still image can be used to portray complex idea.

The following chart shows the housing prices in the United States. This chart assumes that the aim should be to get house prices rising again. The chart shows that even though there is a decline of 25% the cost of houses is still way too high. Government efforts may hinder the prices of houses from going up and may be help the prices to reduce but eventually the prices would increase again; it would just be a postponement of what is to be expected. The chart enables someone to understand the long term average of housing prices. In 2000 the median value of a home in the United States was $119,600; in 2006 it rose to $221,900. Home prices always rise every year in line with the Consumer Price Index.

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The price would have increased by 17% to $140,000 if the leaders had followed long term trends but instead they rose to 86% because of the unreasonable lowering of interest rates to 1% by Alan Greenspan. The increase skyrocketed to 86% because of criminal pushing for loans, home buyers stupidity and foolishness, investment bankers' greed and hubris and lowlife mortgage brokering. In 2009 the median value was $150,000 and $180,100 in 2008. Housing prices are still overvalued by 20%. From this chart one can see that averages which are long term are brought about by over evaluation periods followed by undervaluation periods. In 2006 there was a housing slump in the housing prices (Nutting, 2006), this shows that the model might be right in predicting the prices.

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There is a need for prices to fall by twenty percent or they could fall by 30%. The chart shows how the housing market should be manipulated to correct its fair value. This chart can be very useful for the president and other leaders who have a direct impact on the housing prices. For instance Bush moved in to help homeowners in 2007(Solomon, 2007). The chart can also be a guide to people who pay mortgage. This model can be attested for by Christie (2010), from the chart one can see that in 2010, the prices seem to be stabilizing and this is the case since Christie reported that home prices seem to be becoming stable. They prices jumped a considerable 3.6% in 2009. Berra (2008) argued that the adage a picture is worth a thousand words mostly applies in geometry. She argued that a drawing of any object usually convey information more quickly than a long written description, drawings and sketches are used by many people in many occupations to convey ideas.

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