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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 44.7 EMBER
EMBER
band
▼ SHORT EWU
expression · bearish macro
MISS
outcome · R -21.9% · α -40.3%
2023-10-01
window closed

⚖ Why this verdict

fully deterministic — evaluate.py replays this from daily closes; 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 → direction-adjusted R = -21.9% (the call lost money).
  3. Benchmark: holding SPY over the same window returned +18.4%α = -21.9 − (+18.4) = -40.3% — what this call made or lost against just owning the index. This is the number the verdict uses.
    Stock-selection 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:
    · HIT — R ≥ +10% AND α ≥ +5
    · PARTIAL — R ≥ +5% OR α ≥ 0
    ▶ MISS — everything else
  5. Credit: supporters of a MISS earn 0 each, opposers the inverse — this feeds the scoreboard weights. 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

Chamath
Chamath macro w=1.06 · 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.”
Chamath
Chamath macro w=1.06 · 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.”

Who built this conviction

each voice's total force on the score — supports and opposes from every mention, weighted exactly as the replay applied them · share = % of all mention-driven movement

Chamath
Chamath w=1.06
2 scoring events · 100% of moves
+61.7 → net +61.7

⏳ decay drained -42.2 over the idea's life — that's time passing, attributed to no one

Score events

episodekindΔafternote
E98 2022-10-01 init +44.7 44.7 E98 born by Chamath (explicit_prediction x3) [w=1.06]
E99 2022-10-07 decay -1.8 42.9 E99 silent
E100 2022-10-14 decay -1.7 41.2 E100 silent
E101 2022-10-22 decay -1.6 39.5 E101 silent
E102 2022-10-29 decay -1.6 37.9 E102 silent
E103 2022-11-05 decay -1.5 36.4 E103 silent
E105 2022-11-19 decay -1.5 35.0 E105 silent
E106 2022-12-03 decay -1.4 33.6 E106 silent
E107 2022-12-10 decay -1.3 32.2 E107 silent
E108 2022-12-16 decay -1.3 30.9 E108 silent
E109 2022-12-24 decay -1.2 29.7 E109 silent
E110 2023-01-06 decay -1.2 28.5 E110 silent
E111 2023-01-13 decay -1.1 27.4 E111 silent
E112 2023-01-20 decay -1.1 26.3 E112 silent
E113 2023-01-27 decay -1.1 25.2 E113 silent
E114 2023-02-04 decay -1.0 24.2 E114 silent
E115 2023-02-11 decay -1.0 23.3 E115 silent
E116 2023-02-17 decay -0.9 22.3 E116 silent
E118 2023-03-03 decay -0.9 21.4 E118 silent
E119 2023-03-11 decay -0.9 20.6 E119 silent
E120 2023-03-17 decay -0.8 19.7 E120 silent
E121 2023-03-24 decay -0.8 19.0 E121 silent
E122 2023-03-31 decay -0.8 18.2 E122 silent
E123 2023-04-07 decay -0.7 17.5 E123 silent
E124 2023-04-14 decay -0.7 16.8 E124 silent
E125 2023-04-21 decay -0.7 16.1 E125 silent
E126 2023-04-28 decay -0.6 15.5 E126 silent
E128 2023-05-12 decay -0.6 14.8 E128 silent
E129 2023-05-19 decay -0.6 14.2 E129 silent
E130 2023-05-26 decay -0.6 13.7 E130 silent
E131 2023-06-02 decay -0.5 13.1 E131 silent
E132 2023-06-10 decay -0.5 12.6 E132 silent
E133 2023-06-16 decay -0.5 12.1 E133 silent
E134 2023-06-24 decay -0.5 11.6 E134 silent
E135 2023-07-01 decay -0.5 11.2 E135 silent
E136 2023-07-09 reinforce +17.0 28.2 E136 Chamath support x3 [w=1.06]
E137 2023-07-14 decay -1.1 27.0 E137 silent
E139 2023-07-27 decay -1.1 26.0 E139 silent
E140 2023-08-04 decay -1.0 24.9 E140 silent
E141 2023-08-11 decay -1.0 23.9 E141 silent
E142 2023-08-18 decay -1.0 23.0 E142 silent
E143 2023-08-25 decay -0.9 22.0 E143 silent
E144 2023-09-01 decay -0.9 21.2 E144 silent
E146 2023-09-22 decay -0.8 20.3 E146 silent
E147 2023-09-29 decay -0.8 19.5 E147 silent