Monday, October 30, 2017

Three from New Deal Demoncrat

New Deal Demoncrat - leading indicators negative for second straight quarter. Quote:
There are two long leading indicators in the GDP report: real private residential investement and corporate profits. Since the latter is not released until the second or third revision, the less leading proxy of proprietors' income serves as a placeholder.

Real private residential investment declined at a -6.0% annual rate, following a revised -7.8% annual rate for Q2 (blue in the graph below). That's even worse when you take into account that the best measure is housing investment as a share of GDP (red). Since housing investment declined and GDP rose, that's an even bigger hit.
Yes, and that's especially bad if the housing cycle is the economic cycle.

Yeah seriously, he's been wharrgarbling about Trump for a while, but now with actual data backing him up he's got my attention.

New Deal Demoncrat - weekly indicators: mortgage rates turn negative. And just imagine how worse it'll be with a new Fed chair hell-bent on raising rates by a couple percent because of all the hyperinflation we've been having.

New Deal Demoncrat - real cost of renting versus home ownership. I guess what the working class is supposed to do is go back to living 6 to a room, like in the age of Dickens.

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