Tuesday, November 27, 2007

Flow of Funds Fun! v.7 (Musical Tribute)



This is a continuation of the previous Flow of Funds Fun! post. I have extrapolated the trend lines out to the year 2011.

I thought it would be useful to see how long we'd need to stagnate in order to return to the mean. 2011 seems like a decent ball park estimate, assuming we started stagnating as of June 30, 2007 (the last data points in the chart above).

Of course, once we start stagnating it might take a long time to stop. As seen in the 1970s, we don't necessarily have to stop just because we've hit the mean.

Behold the flight [to quality] of the bumblebee!



Let's just hope there's a chair still available when the music stops. Unless I'm mistaken, there doesn't seem to be all that many chairs.

See Also:
Flow of Funds Fun! v.6

Source Data:
FRB: Flow of Funds Accounts
St. Louis Fed: Population: Mid-Month
BLS: Consumer Price Index

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