Investment markets Overview – w/e 22 Nov 2013

According to a report by think-tank, the Centre for Social Justice, personal debt in Britain has reached £1,430,000,000,000, nearly double what it was a decade ago and about equal to the nation’s economic output. The report, entitled, “Maxed Out,” confirms that real wages have fallen to 2003 levels whilst the cost of living has risen by 25% over the past five years, mainly due to essentials such as rent, gas and electricity. Whilst careful not to judge, in respect of government and/or central bank policy, it goes on to observe that the Bank of England’s drive to historically low interest rates sends a clear signal that saving is not financially beneficial, whilst encouraging even higher debt levels within the already overvalued residential property market. Mortgage debt, at £1.27 Trillion, already accounts for 89% of that £1.43 Trillion number and at an average £112,640 per household has tripled since 1999. In 2012 there were arrears on 300,000 mortgages in the UK, with 34,000 homes being repossessed and although the number is 30% lower than the 2009 peak, it’s still 60% higher than 2006. With the interest rate cycle having now turned higher, regardless of what Mr Carney says, this number is set to soar.

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Subscribe to the Full Investment Markets Overview Newsletter which contains the following additional commentaries:-  

  • US economic data . . .

  • Euro-Zone   . . .

  • The UK . . .

  • Out East   . . .

  • The $US index  . . .

  • Within the commodities complex  . . .

  • Economic data due next week includes  . . .

  • It was a bad week for the Reverend Paul Flowers, the former Chairman of the near collapsed UK bank, The Co-operative.    . . .
     

  • Charts:-
    1. Indices Weekly
    2. US CPI M on M vs US Employment Cost Index
    3. House Price Earnings Ratio – Southeast vs UK Average
    4. Japan Merchandise Trade Imports Y on Y vs Japan Merchandise Trade Exports Y on Y
    5. Commodity 1 Week Moves
  • Table:-

13 Indices, 11 columns of detailed information, for accurate analysis

“Regulators appear to have no accountability”

Click  HERE to view Details of the full version of this Newsletter

which includes full text and detailed Charts for each section

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