Home Mortgage Debt Possibility

Here's the most recent quarterly data from the Flow of Funds Accounts.

The data appears (using the power of the eyeball) to be rolling over a bit (no longer parabolic). I added a 5th Order Polynomial simply because it fit the data best and might offer some possible glimpse into where the trend wants to head next (assuming nobody rescues it).

I just want to remind you that if it was THIS easy to predict future trends I probably wouldn't waste my time writing this. I'd be out making some serious money right now. ;)

That being said, it is my belief that the housing market and/or debt bubble is going to continue to be a slow motion train wreck. This chart doesn't exactly change my opinion.

As hawkish as Bernanke's been lately, I can't imagine he'll let several trillion dollars of real estate wealth turn into an "illusion of prosperity" without a fight, especially if he's got a perfectly good monetary printing press simply going to waste. Then again, he might have to in order to protect the dollar. I'm not willing to even offer a prediction on that.

This is not investment advice. I'm just some random anonymous poster on the Internet. What do I know?