SPX/Spy Down Down we go, how far down nobody knows
Simple, Descending volume, increasing price equals????
Divergences speak for themselves
1.5 Trillion dollars in student loans
Housing market PRICES getting very high due to previous lower rates which cause a demand/supply inconsistency
New Auto average sales price all time high of 33,560, also luxury cars/SUV sale gaining market share over mainstream brands due to high demand.
41.2% of all households carry some sort of credit card debt.
Households with the lowest net worth (zero or negative) hold an average of $10,308 in credit card debt.
Based a on report from Black Knight, more than 80% of all people with a mortgage have in aggregate approximately $5.4 trillion in equity available to borrow against from a first-lien cash-out refinance or a home equity line of credit (HELOC) as of Q3 2017, the highest level on record. The increase in home prices has driven the increase in home equity loans.
52% of HELOC balances were greater than $100,000 at the end of last year, TransUnion found. 2016
So what happens in all the above instances when rates go up? It puts stress on each and every avenue we have as citizenss for a meaning of living our lives. Its true the economy is growing very fast and unemployment is at all time low, but what does this really mean? Will we be able to keep up with our DEBT? Unemployment is low but this does not mean wages have increased. Feds HAVE TO raise the rates with this kind of growth we are seeing in this economy to keep inflation under control. The way I see it, we bought our way out of a recession with stupid low rates only to trip over our own growth when rates go up into another recession/depression. Are we that impatient as a society?
This time it will be a lot worse. In 2007/2008 we did not have the problems we see now in emerging economy's. Greece,Italy,Spain all debt problems. China creating a false bottom in their markets yesterday. This is getting messy and its only accelerating. I'm short SPY.
Divergences speak for themselves
1.5 Trillion dollars in student loans
Housing market PRICES getting very high due to previous lower rates which cause a demand/supply inconsistency
New Auto average sales price all time high of 33,560, also luxury cars/SUV sale gaining market share over mainstream brands due to high demand.
41.2% of all households carry some sort of credit card debt.
Households with the lowest net worth (zero or negative) hold an average of $10,308 in credit card debt.
Based a on report from Black Knight, more than 80% of all people with a mortgage have in aggregate approximately $5.4 trillion in equity available to borrow against from a first-lien cash-out refinance or a home equity line of credit (HELOC) as of Q3 2017, the highest level on record. The increase in home prices has driven the increase in home equity loans.
52% of HELOC balances were greater than $100,000 at the end of last year, TransUnion found. 2016
So what happens in all the above instances when rates go up? It puts stress on each and every avenue we have as citizenss for a meaning of living our lives. Its true the economy is growing very fast and unemployment is at all time low, but what does this really mean? Will we be able to keep up with our DEBT? Unemployment is low but this does not mean wages have increased. Feds HAVE TO raise the rates with this kind of growth we are seeing in this economy to keep inflation under control. The way I see it, we bought our way out of a recession with stupid low rates only to trip over our own growth when rates go up into another recession/depression. Are we that impatient as a society?
This time it will be a lot worse. In 2007/2008 we did not have the problems we see now in emerging economy's. Greece,Italy,Spain all debt problems. China creating a false bottom in their markets yesterday. This is getting messy and its only accelerating. I'm short SPY.