Saturday 26 November 2011

More leverage equals bigger housing bubbles.



Everyone knows it to be true; if the household sector increases its borrowing, then the housing market will explode.  The curious thing about this chart is some of the really leveraged countries we never hear about - like the Netherlands and Denmark.

What happened there, I wonder?  Will they suddenly jump out of the wardrobe and say "Boo"?

2 comments:

Anonymous said...

It was all painfully predictable.

Anonymous said...

What's the correlation on that. Because just eyeballing it, it looks terrible.

The fact you can draw a line through it, doesn't make that line meaningful.