Yesterday, we asked what the Misery Index would look like if the CPI and Unemployment were reported honestly.
A colleague at Credit-Suisse suggested adding in the annual change in house prices to the misery index. Suddenly, we can see that the consumer is in as much pain as in the early nineties and the early eighties.
If house prices, Unemployment and CPI carry on as expected, this index will be at all time high within a year.
By way of comparison, the old format misery index is below: