These houses aren't bear traps, US optimism du jour Two charts to nurture some hope this morning. First, a reminder that when long established trends turn, they can do so very quickly. Both arrive via a presentation from Pictet & Cie, and concern US housing. In this one, the effects of an end to the six year bear market for house prices are healing household finances quite rapidly. The proportion of mortgaged homes worth less than the loans held against them is now at 15 per cent and falling. Even if that does not encourage more lending and consumption, at the very least it means more people can now move house to change jobs or pursue opportunities elsewhere. But if it were to be part of an accelerating cycle of greater confidence, household formation, lending and spending, well, there is plenty of room for the latter to grow and extend the recent upward trend. We'll put the rest of the presentation in the usual place. Related links: The kids are moving out - FT Alphaville When household formation growth returns - FT Alphaville Another look at US household formation growth - FT Alphaville An update on US household formation - FT Alphaville