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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (12678)	10/2/2004 6:14:38 PM
From: Elroy Jetson	Read Replies (4) \| Respond to of 116555

You're right, when we look carefully at this chart, one might clearly imagine that Equity Extraction by Home Owners could possibly peak within the next few years and then head down. While not actually true, in a real world sense, it's important to hold onto your imagination regardless of what anyone else says. home.pacbell.net Maybe if we alter the actual data with the number of seasonal sunspots the chart might look a little more optimistic. Maybe we could manipulate this chart of increasing debt load with that clever birth/death method used to report far more job creation than actually exists. What if we look at the data while clicking our heels and repeating "there's no place like home, there's no place like home!" Yeah, that's the ticket.

To: GraceZ who wrote (12678)	10/2/2004 8:17:30 PM
From: NOW	Read Replies (1) \| Respond to of 116555

a tiny decline off the top according to Kariels data. you really are Dr. Pangloss.

To: GraceZ who wrote (12678)	10/3/2004 9:29:17 AM
From: russwinter	Read Replies (1) \| Respond to of 116555

<trend has peaked and is heading down> This is a debt servicing chart, not a debt trend chart. The trend of taking on more debt has most certainly not turned down. Household debt from the 2Q, 2004 numbers is still rising about 7%, well above personal income gains. The ability to service that debt hasn't climbed only because we had a 1% Fed Funds rate when this chart was pulled together. But with rates slowly climbing, so will debt servicing requirements. Lots variable rate loans out there.