There are a lot of pics doing the rounds about US housing, with commentary to the effect that things are a bit bubblish.

The below is one such, & the implied is that as mortgages rates reprice, the homeowner is squeezed…


Now flit your eyes from the US, to the world, below, & note Australia and New Zealand. It is quite extraordinary, what we have achieved, here in a little corner of the world.


Without a doubt, this is the Achilles heel of the country. It’s not commodities, believe it or not.

They go up, and down, and usually the dollar with it, and as such have a natural hedge, to a degree, and are typically quite well protected given very favourable cost curve positioning.

It is the homeowner, and how over-bought, over-levered, and vulnerable to a downturn they are.

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