This helps explaining why equities and earnings are doing ok in nominal terms despite historic lows in consumer sentiment and collapsing leading indicators 👇 There is a difference between nominal and real revenues and earnings. We see just nominal numbers. Chart @PatrickKrizan I find current Weimar comparisons ridiculous and inappropriate, but nevertheless history teaches us that shares of companies having the power to pass higher costs to their customers during hyperinflation were reliable stores of value.

There have been three main factors driving the real estate bubble in Germany, and everywhere else, in the last few years.

1. Continuously lower mortgage rates 👇 that’s obviously behind us. Rate of change is unprecedented, quickly destroying housing affordability. 2. Boomers were the last generation with more than two children. Children were moving out driving RE demand, but boomers did not scale down. This is behind us, the reverse effect is kicking in. Boomers start to pass away, children move back into the house, or sell it. Demand gone

Fingers crossed for those who recently bought a house above asking price 👇 Chart @PkZweifel 2/3 US new home sales, no bueno 👇 ht @Lvieweconomics

What many don’t understand:

Capitalism = unequal distribution of wealth

Socialism = equal distribution of poverty 2/2

Best case in socialism = poverty and misery

All socialist countries so far = closed borders to avoid flight from the socialist paradise, people shot at the border, famine, terror, atrocities.