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XYZ metric is at its highest ever! Is it adjusted for inflation and the rise in population in that period? (hint: it isn't) 10 seconds of simple math usually
by paxys 2y ago
XYZ metric is at its highest ever!
Is it adjusted for inflation and the rise in population in that period? (hint: it isn't)
10 seconds of simple math usually takes the steam out of the vast majority of such sensationalized headlines.
- deleted 2y ago[deleted]
- piva00 2y agoYou're correct about the figure not being adjusted for inflation but the metric on the rise compared to last year is concerning: > Credit card lenders wrote off $46bn in seriously delinquent loan balances in the first nine months of 2024, up 50 per cent from the same period in the year prior and the highest level in 14 years
- bbatsell 2y agoThat is not an independent variable. For example, lenders could have decided that the market in 2023 was on the way up and not writing off as much debt would allow them to collect more delinquent accounts in the future. In 2024, they think that anyone who would have been able to pay them has done so, so they wrote off the defaults they postponed from 2023 and also increased the speed of their write offs because their predictions about the economy changed. While it tells you something, it’s certainly not an accurate measure of spending habits or ability to pay.
- sosodev 2y agoA lot of those metrics are percentages which are always adjusted for population.