Weekly Indicators for June 27 – July 1 at Seeking Alpha
by New Deal democrat
Weekly Indicators for June 27 – July 1 at Seeking Alpha
My Weekly Indicators post is up at Seeking Alpha.
There was yet more deterioration this week, focused on the long and short leading indicators.
But consumer spending still seems to be holding up.
As usual, clicking over and reading should bring you up to the virtual moment about the economy, and bring me a little pocket change to buy lunch.
My simulator’s leading indicator
do you see how inflation is causing treasury yields to rise? during times of disinflation Treasury yields were falling thus giving homeowners the opportunity to refinance their home frequently enough pay them a living wage. as the tide Peaks then begins to rush back out to sea homeowners see this opportunity vanish Into Thin Air. to retain some return on their Capital they take the capital out of their home and put it into treasury bonds now paying higher and higher interest or into dividend stocks such as utilities. with so many homeowners selling their homes to reinvest the capital, home prices drop by the mechanism of :
Supply/price/demand
. first the homeowners sell their secondary homes, their recreational homes, their vacation homes, and homes that they are renting out to Airbnb. later they sell their primary place of residence with one contract that will allow them to sell but rent back from the new owner. those owners who are agile enough to act quickly sell first before the prices drop excessively; but the procrastinators wait too long and lose much more money during the next five years of falling home prices.
good
luck
!