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🌍 UK mortgage resets flip the UK economy upside down

Chamath's numbers: 40% of all UK mortgage dollars are interest-only adjustable loans that reset in January to around 4%, so households have to spend three to four times more just to keep their homes. Layered on a Bank of England that is about to hike 140bp while simultaneously declaring itself an unlimited buyer of gilts to backstop the Truss fiscal package - raising rates and acting as a backstop for bad policy at the same time, with no real check and balance - the UK becomes the first place the global debt-service squeeze actually breaks. His timeline framing: the UK thing happens in about six days, the US version plays out over six or nine months the exact same way.

0 CONVICTION
peaked 42.0 EMBER
EMBER
band
▼ SHORT EWU
expression · bearish macro
WRONG
result · return -21.9% · vs SPY -40.3%
2023-10-01
born 2022-10-01 (E98) → window closed

other ideas on the same ticker, same direction: Bond vigilantes hit Western Europe: French OATs to 5.5-6%, UK gilts to 6% 59 (EWU) · Bond vigilantes hit Western Europe: French OATs to 5.5-6%, UK gilts to 6% 59 (FXB)

⚖ Why this result

fully deterministic — computed from daily closes on the scoring date; nothing below is editable or hand-set

  1. Window: 2022-10-01 → 2023-10-01 — first mention + 12-month horizon, then the window locks.
  2. The call: ▼ SHORT EWU (primary play). EWU rose 21.9% over the window → return (sign flipped for a SHORT) = -21.9% (the call lost money).
  3. Benchmark: holding SPY over the same window returned +18.4% → vs SPY = -21.9 − (+18.4) = -40.3% — what this call made or lost against just owning the index. This is the number the result uses.
    Direction-only read: -3.4% — did EWU move the predicted way relative to the market. The two only differ on a SHORT: this call was right about direction relative to the index but still cost money versus holding it.
  4. Rule fired:
    · RIGHT — return ≥ +10% AND beat SPY by 5+
    · HALF — return ≥ +5% OR beat SPY at all
    ▶ WRONG — everything else
  5. Credit: supporters of a WRONG earn 0 each, opposers the opposite — this feeds the scoreboard. supported: Chamath

Conviction timeline

bands: green ≥ 65 · watch ≥ 45 · ember ≥ 15

Plays vs SPY · % since first mention (2022-10-01)

Plays

expressionsymbolkindrelevancerationale
▼ SHORT EWUetf PRIMARY direct UK equity exposure to the household-payment shock
▼ SHORT FXBetf adjacent sterling is where the Truss/BOE policy incoherence priced first

Mention log newest first

Chamath
Chamath macro 53% · n=47 · E136 (2023-07-09) · explicit_prediction · strength 3 ▶ 34:30 SUPPORT
“The UK, it seems like, I don't know what you guys think, it's definitely going to 7%. And it could go to 8%. I mean, it could be a very bad situation for the UK. They're in a lot of trouble.”
Chamath
Chamath macro 53% · n=47 · E98 (2022-10-01) · explicit_prediction · strength 3 ▶ 30:22 SUPPORT
“So in the UK, 40 percent of all mortgage dollars are interest-only arms that will reset in January to around four percent.”

Who built this conviction

each voice's total push on the score, in conviction points across every mention — supports and opposes · share = % of all mention-driven movement

Chamath
Chamath 53%
2 scoring events · 100% of moves
+58.1 → net +58.1

⏳ decay drained -39.7 over the idea's life — that's time passing, attributed to no one

Score events

episodekindΔafternote
E98 2022-10-01 init +42.0 42.0 E98 born by Chamath (explicit_prediction x3)
E99 2022-10-07 decay -1.7 40.3 E99 silent
E100 2022-10-14 decay -1.6 38.7 E100 silent
E101 2022-10-22 decay -1.5 37.2 E101 silent
E102 2022-10-29 decay -1.5 35.7 E102 silent
E103 2022-11-05 decay -1.4 34.2 E103 silent
E105 2022-11-19 decay -1.4 32.9 E105 silent
E106 2022-12-03 decay -1.3 31.6 E106 silent
E107 2022-12-10 decay -1.3 30.3 E107 silent
E108 2022-12-16 decay -1.2 29.1 E108 silent
E109 2022-12-24 decay -1.2 27.9 E109 silent
E110 2023-01-06 decay -1.1 26.8 E110 silent
E111 2023-01-13 decay -1.1 25.7 E111 silent
E112 2023-01-20 decay -1.0 24.7 E112 silent
E113 2023-01-27 decay -1.0 23.7 E113 silent
E114 2023-02-04 decay -0.9 22.8 E114 silent
E115 2023-02-11 decay -0.9 21.9 E115 silent
E116 2023-02-17 decay -0.9 21.0 E116 silent
E118 2023-03-03 decay -0.8 20.1 E118 silent
E119 2023-03-11 decay -0.8 19.3 E119 silent
E120 2023-03-17 decay -0.8 18.6 E120 silent
E121 2023-03-24 decay -0.7 17.8 E121 silent
E122 2023-03-31 decay -0.7 17.1 E122 silent
E123 2023-04-07 decay -0.7 16.4 E123 silent
E124 2023-04-14 decay -0.7 15.8 E124 silent
E125 2023-04-21 decay -0.6 15.1 E125 silent
E126 2023-04-28 decay -0.6 14.5 E126 silent
E128 2023-05-12 decay -0.6 13.9 E128 silent
E129 2023-05-19 decay -0.6 13.4 E129 silent
E130 2023-05-26 decay -0.5 12.9 E130 silent
E131 2023-06-02 decay -0.5 12.3 E131 silent
E132 2023-06-10 decay -0.5 11.8 E132 silent
E133 2023-06-16 decay -0.5 11.4 E133 silent
E134 2023-06-24 decay -0.5 10.9 E134 silent
E135 2023-07-01 decay -0.4 10.5 E135 silent
E136 2023-07-09 reinforce +16.1 26.6 E136 Chamath support x3
E137 2023-07-14 decay -1.1 25.5 E137 silent
E139 2023-07-27 decay -1.0 24.5 E139 silent
E140 2023-08-04 decay -1.0 23.5 E140 silent
E141 2023-08-11 decay -0.9 22.6 E141 silent
E142 2023-08-18 decay -0.9 21.7 E142 silent
E143 2023-08-25 decay -0.9 20.8 E143 silent
E144 2023-09-01 decay -0.8 20.0 E144 silent
E146 2023-09-22 decay -0.8 19.2 E146 silent
E147 2023-09-29 decay -0.8 18.4 E147 silent