One series that DQYDJ likes to follow quite often is the market’s current stance towards expected inflation over the next 5-30 years. It’s an easy calculation to make – you subtract the real, inflation adjusted yield from non-inflation adjusted yields – the missing factor is ‘CPI‘, or what CPI the market expects over the next […]
June 29th, 2006. It was an innocuous day as the stock market was booming in the post-9/11 recovery. The economy was torrid and the unemployment rate was 4.6% in the USA. That fall, I opened up my checking account with Charles Schwab with their floating-rate free checking account (with no minimums or ATM fees) was paying […]
To see 2016 data, click here. In this article, a continuation of our American Net Worth series, we explore the net worth it took to be in the 10%, 25%, 50%, 75%, 90%, and 99% (the ‘one percent’) bracket in 2013 for American Households headed by 18-24 year olds, 25-29 year olds, 30-34 year olds, […]
Editor: we updated this data for 2016 SCF data. Continuing our little series on American Net Worth secrets revealed by the Federal Reserve’s 2013 Survey of Consumer Finances, I figured we’d zoom into a little segment of the population where more than a few politicians have made their careers: retirees. Okay, that’s a big segment. […]
Editor: we reprised this post with newer data. Last year, we published a mildly interesting article which stated that the correlation between income and wealth isn’t that strong (despite what we have been told). Today we’ll follow it up with the correlation of wealth and income with a twist – we’ll see how it changes […]
Lost among all the discussion about the Federal Reserve is an interesting question: is there a bound on the behavior of the Fed? Enter the Taylor Rule (background) and the Taylor Rule calculator, which you can find on this page. What is the Taylor Rule? First proposed by Economist John B. Taylor in 1993, the Taylor […]
Last October, I mentioned that I had finally hit a net worth of zero, celebrating the occasion of being officially worthless. At that point I mentioned that my next step was to buy a house. I can now say that I finally did get down and buy a house, closing on June 13th). I started […]
Have you been paying attention to the mortgage market lately? That’s one of the reasons why we’re around… to keep track of these things! We’ve been watching the recent mortgage rate spike with a bit of curiosity (and our fingers crossed) as we’re planning on taking advantage of a refinance on our primary home. Looking […]
Media and fellow bloggers alike enjoy bemoaning the hazardous plague of inflation. I will show that not only is this argument not grounded in reality, but that it also ignores many ancillary benefits of an inflationary rate: spending encouragement, debtor relief and avoidance of a deflationary spiral.
We have dealt a lot recently with historically low interest rates and their implications on not only the cost of housing and mortgages, but also implications for consumer credit and inflation. Although we have explained home price affordability in the San Francisco Bay Area before, we haven’t discussed the large variance in regional real estate prices.