Sequoia Capital Market Presentation Deck
FROM VIRTUOUS TO VISCIOUS CYCLE
MORTGAGE RESET
DELINQUENCIES/FORECLOSURES
PRICES FALL
MEWS DECREASE
CONSUMER SPEND FALLS
JOB MARKET ERODES
RECESSION
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
Wy%
0
-5
-10
-15
-20
-25
-30
-35
UNEMPLOYMENT SPIKES HIGHER
1992 1994 1996
Boston
Chicago
Mortgage Delinquency rate
US unemployment rate (RA)
Denver
Case-Shiller composite-10 home price index: by region
(12-month change as of July 2008)
1998 2000 2002 2004 2006 2008
Los Vegas
L.A.
4.33
Miami
6.1
O
San Diego
NY
II
San Francisco
8.0
7.5
Source: Federal Reserve, Haver, Bureau of Labor Statistics, Census Bureau, Factset, Morgan
Stanley Research, Case-Shiller & DB Global Market Research.
7.0
6.5
6.0
5.5
5.0
4.5
4.0
3.5
y/y%
0
-5
-15
Washington D.C.
-20
-10
-25
-30
-35View entire presentation