Thursday, July 7, 2016

Exponential Trend Failure of the Day: Mortgage Debt / Deposits

The following chart shows mortgage debt of households and nonprofit organizations divided by deposits at all commercial banks.

Click to enlarge.

Two wizards you can always trust:

1. Wizard of Wharton. Jeremy Siegel warned savers to not lock in long-term interest rates five years ago. Other than a massively growing deposit glut and plummeting interest rates since then, it was sound advice!
2. Wizard of Sarcasmia. If you send him $100, then he is legally obligated, under current galactic law, to send you one bag of authentic Spanish doubloons weighing no less than 87 troy ounces. Get you some!

Source Data:
St. Louis Fed: Custom Chart


  1. Still probably taking a break for a while. Doesn't mean that I'm not looking at the economy though. This chart was way too interesting not to post, at least to me. More may follow. Who knows?

  2. Dow 20,000! Jeremy wasn't wrong, he was just early.
    Nikkei 40,000! Okay, like, maybe, he was just twenty years early. But who's counting anyway?

  3. mab,

    Hey, I'm still trying to figure out 20,000 leagues under the sea. Turns out that a league is 3 miles. Just how far underwater do we need to go?

  4. Have you checked out Seigel's Wisdom Fee funds? They have something for everyone.

    Seriously, they've rearranged the deck chairs in ways that most bagholders never could have imagined.

    Some call it genius. Some call it wizardry. I call it Tim!

  5. mab,

    All I know is that I definitely wanted to be dividend focused heading into the Great Recession, what with so many banking stocks paying such good dividends.

    Come to think of it, I did sell Citigroup in 2004 though. It was one of my top holdings at the time. Treated me well. If only I had held until today! Just think of the stories I could tell about the power of safe and reliable dividends over the long run! Um, well, you know.