I live in the USA and I am concerned about the future. I created this blog to share my thoughts on the economy and anything else that might catch my attention.
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
No comments:
Post a Comment