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"?


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.