Quick programming note: Basis Points will be off the rest of this week. Happy Thanksgiving, everyone!
What I’m Reading
Cash Cows: An unprecedented supply chain crisis has resulted in public container shipping companies hitting all time highs for net revenue. To put this in perspective, the $48.1 billion in 3Q21 container shipping profits was almost 50% higher than total FANG (Facebook, Amazon, Netflix and Google) profits and the 42.7% net income to revenue margin was almost three times higher. Compared to cash cows Apple and Microsoft combined, container shipping industry profits were still almost 15% higher with a profit margin that was almost 30% higher. MarineLog
Off Site: With home prices surging, factory-built homes are once again drawing interest as a potential cost effective solution. Wall Street Journal
No End in Sight: Third-quarter multifamily absorption level broke the record set last quarter and is the highest on record since tracking began in 2000. Globe Street
Enigma: Understanding household formation is critical to understanding the direction of the housing market. However, increased investor activity, the growing popularity of second homes and pandemic-related measurement issues have made assessing household formation trends even more difficult than before. CalculatedRisk Newsletter
Low Hanging Fruit: One thing that the US government could do to immediately reduce inflation is get rid of tariffs. Econbrowser
Chart of the Day
Source: Marine Log
WTF
The Great Escape: A cow in Brazil escaped from a ranch and ended up in a resort where it somehow got stuck on a waterslide. AV Club
Packin’ Heat: A woman pulled a gun on a Popeye’s employee over a dispute about food because Florida. The Tampa Free Press
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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