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HOLA445
On 13/04/2022 at 19:10, Data Dave said:

image.png.fb470b503008e91bcb68e7a572623bb0.png

The thing that is odd about this chart is that the white line tends to be a leading indicator and the 2 things now look disconnected.  Red line is headed up and white line down.   Is there a reason for that?

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HOLA446

Yes, it's a funny one isnt it. Partly why I thought id share. The answer is I dont know.

Those larger tick ups in the Bankrupcy Index have usually preceded the Junk bond yields rises. As you say currently disconnected, meaning dislocation and either that will remain and buck the trend of this graph, or bankruptcies will tick up... (or junk bond yields could fall I guess too)

Bonds yields are having a 'moment' everywhere though, so to speak.

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2 minutes ago, dugsbody said:

Exactly.

Low interest rates allowed people to bid house prices higher and still pay the same per month. Interest rates have been the main driver of house prices globally, for many decades.

The driver for posting this here was to keep it handy for the never-ending pensioner hating arguments on this forum, not to start a discussion on it in this thread.  There are a few other plots I need to re-find and post here also.

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4 minutes ago, kzb said:

The driver for posting this here was to keep it handy for the never-ending pensioner hating arguments on this forum, not to start a discussion on it in this thread.  There are a few other plots I need to re-find and post here also.

Then you don't understand the arguments.

Mortgage payments as a percentage of income have stayed roughly the same as average, but because of lower interest rates the cost of the house has become stratospheric and disqualifies a lot of people from owning it.

Not to mention that obviously the data is self correcting. If people can't afford a house in an area that their parents could (on lower wages too), then they move to a worse area where they can afford, and wow, would you look at that, mortgage payments as a percentage if income stats stay the same.

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6 minutes ago, dugsbody said:

Then you don't understand the arguments.

Mortgage payments as a percentage of income have stayed roughly the same as average, but because of lower interest rates the cost of the house has become stratospheric and disqualifies a lot of people from owning it.

Not to mention that obviously the data is self correcting. If people can't afford a house in an area that their parents could (on lower wages too), then they move to a worse area where they can afford, and wow, would you look at that, mortgage payments as a percentage if income stats stay the same.

I'm sure there will be yet more rounds of the same arguments coming very soon.  Save it for then.

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14 minutes ago, kzb said:

I'm sure there will be yet more rounds of the same arguments coming very soon.  Save it for then.

Meanwhile, you can keep denying reality that the young have a much, much harder time buying an equivalent house to their parents generation.

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8 hours ago, cnick said:

https://wtfhappenedin1971.com/

WTF Happened In 1971?


-The Walt Disney World Theme Park is opened in Florida.
-A new stock market index called the Nasdaq debuts.
-Intel release the world's first microprocessor, the 4004.
-Born June 28 1971 – Elon Musk, South African-born Canadian-American.
-Nixon Ends Convertibility of U.S. Dollars to Gold and Announces Wage/Price Controls.

Its the last one, enit?

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