4 ms·

If you read beyond the headline you'll see that no, it's not a mystery

raverbashing 5y ago
The map also supports that story.
belter 5y ago
It is a mystery and a warning of a serious bubble. The bubble will grow to levels never seen in history. Future generations will be saddled with historical high taxation levels. Some Central Bankers will show up at the US Congress or European parliamentary inquiries.They will pull another Greenspan - "I had no clue how the economy really works" type of excuse while getting back to their golden retirements: https://www.theguardian.com/business/2008/oct/24/economics-creditcrunch-federal-reserve-greenspan https://www.theguardian.com/business/2008/oct/24/economics-c... For example at least commenting from an European perspective nothing makes sense: - Real wages (for example in the European Union) are decreasing or stagnant for years - Example data point for 2020 for ex: https://www.statista.com/statistics/264605/development-of-real-wages-in-eu-countries/ https://www.statista.com/statistics/264605/development-of-re... - Most companies are only alive due to governments subsiding jobs, that in reality, do not exist anymore. Ex: KLM and Air France pilots receiving some of the highest salaries in the world, while their airplanes sit on the tarmac.: https://simpleflying.com/air-france-klm-traffic-drop/ https://simpleflying.com/air-france-klm-traffic-drop/ The main issue is that very shortly, the increased debt that most countries were forced to incur will be due soon. Very soon and in, ( what else ? ), increased taxation: https://www.bloomberg.com/graphics/2021-coronavirus-global-debt/ https://www.bloomberg.com/graphics/2021-coronavirus-global-d... All this should mean most persons should thing two times before paying inflated values. Clearly is not not happening. In Europe it is common to see interviews with couples who just got into the so called property ladder. Most are actually ashamed of confirming how much they paid for the microscopic house they just purchased... - Not sure in the US, but in Europe very few young workers are able to get permanent contracts instead of temporary 2-3 years contracts. By law, most countries require those to become permanent contracts after 2-3 renewals but that is not happening. European banks in the last few years, significantly increased the requirements to qualify for a mortgage, requiring both spouses working, permanent work contracts required,minimum apportion of capital sometimes of 10% to 15 % of the value of the house. Just a minority can rely on the "Bank of Papa and Mamma". So this also fails to explain some of the bidding wars seen in the last few months. It is mostly driven by speculators flush with cheap money and central banks complete irresponsibility. It also shows another massive failure on the part of banks to perform their due diligence concerning future prospects. Cue now a US budget that throws away 100 years of economic theory and the world will be in for a very VERY rough ride: https://www.nytimes.com/2021/05/27/business/economy/biden-plan.html https://www.nytimes.com/2021/05/27/business/economy/biden-pl... Initially will be a party worthy of the scenes in the Wolf of Wall Street. The core question here is at which point does THIS matter ? : https://www.visualcapitalist.com/20-trillion-of-u-s-debt-visualized-using-stacks-of-100-bills/ https://www.visualcapitalist.com/20-trillion-of-u-s-debt-vis...

The map also supports that story.

It is a mystery and a warning of a serious bubble. The bubble will grow to levels never seen in history. Future generations will be saddled with historical high taxation levels. Some Central Bankers will show up at the US Congress or European parliamentary inquiries.They will pull another Greenspan - "I had no clue how the economy really works" type of excuse while getting back to their golden retirements: https://www.theguardian.com/business/2008/oct/24/economics-creditcrunch-federal-reserve-greenspan https://www.theguardian.com/business/2008/oct/24/economics-c... For example at least commenting from an European perspective nothing makes sense: - Real wages (for example in the European Union) are decreasing or stagnant for years - Example data point for 2020 for ex: https://www.statista.com/statistics/264605/development-of-real-wages-in-eu-countries/ https://www.statista.com/statistics/264605/development-of-re... - Most companies are only alive due to governments subsiding jobs, that in reality, do not exist anymore. Ex: KLM and Air France pilots receiving some of the highest salaries in the world, while their airplanes sit on the tarmac.: https://simpleflying.com/air-france-klm-traffic-drop/ https://simpleflying.com/air-france-klm-traffic-drop/ The main issue is that very shortly, the increased debt that most countries were forced to incur will be due soon. Very soon and in, ( what else ? ), increased taxation: https://www.bloomberg.com/graphics/2021-coronavirus-global-debt/ https://www.bloomberg.com/graphics/2021-coronavirus-global-d... All this should mean most persons should thing two times before paying inflated values. Clearly is not not happening. In Europe it is common to see interviews with couples who just got into the so called property ladder. Most are actually ashamed of confirming how much they paid for the microscopic house they just purchased... - Not sure in the US, but in Europe very few young workers are able to get permanent contracts instead of temporary 2-3 years contracts. By law, most countries require those to become permanent contracts after 2-3 renewals but that is not happening. European banks in the last few years, significantly increased the requirements to qualify for a mortgage, requiring both spouses working, permanent work contracts required,minimum apportion of capital sometimes of 10% to 15 % of the value of the house. Just a minority can rely on the "Bank of Papa and Mamma". So this also fails to explain some of the bidding wars seen in the last few months. It is mostly driven by speculators flush with cheap money and central banks complete irresponsibility. It also shows another massive failure on the part of banks to perform their due diligence concerning future prospects. Cue now a US budget that throws away 100 years of economic theory and the world will be in for a very VERY rough ride: https://www.nytimes.com/2021/05/27/business/economy/biden-plan.html https://www.nytimes.com/2021/05/27/business/economy/biden-pl... Initially will be a party worthy of the scenes in the Wolf of Wall Street. The core question here is at which point does THIS matter ? : https://www.visualcapitalist.com/20-trillion-of-u-s-debt-visualized-using-stacks-of-100-bills/ https://www.visualcapitalist.com/20-trillion-of-u-s-debt-vis...