What I’m Reading
Tipping Point: China Evergrande has defaulted on the debt it owes to global investors, according to Fitch Ratings. Evergrande has already said it would “actively engage” with its foreign creditors to come up with a plan for restructuring but any such plan will require the blessing of the Chinese government. The market has long-anticipated that this would be the case. NY Times FWIW, I still don’t see this having much of an impact on US markets.
Outside the Box: Battered mall owners are looking to alternative users – think casinos, medical facilities, amusement parks, schools, offices and storage units – to fill more than 90 million vacant square feet. Bloomberg
Catch 22: Amazon has increased its wages dramatically for warehouse workers. This is generally a good thing in terms of raising lower end incomes and has effectively implemented a wage floor in markets with Amazon facilities without government intervention. However, it also comes at a cost that includes pulling workers from non traditional job classes. The nation’s shortage of bus drivers is a good illustration of the issue. Bloomberg
Grinding to a Halt: US population growth from July 2020 – July 2021 was the slowest in over a century. Of course this was mostly due to the pandemic but the slowdown dates back to 2016, after which immigration slowed dramatically. This likely becomes a much bigger long-term problem if immigration doesn’t pick up again in the post-pandemic era. Calculated Risk
Chopped Up: Companies that provide a co-warehousing space are growing in demand among industrial users, and it’s not just small businesses driving the gains. Bisnow Expect to hear more about this space in the coming months as warehouse prices and lease rates continue to rise.
Chart of the Day
The number of people who prefer to work from home is now substantially higher than it was in 2020.
Source: Mike Zaccardi
WTF
Mother of the Year: A Missouri mother is facing jail time after she admitted to stealing her estranged daughter’s identity in order to secure student loans, enroll in college and date younger men. NY Post
Extra Motivation: An Ohio woman began shooting a gun in a Wendy’s drive through when workers at the fast food chain took “too long.” (h/t Adam Siegel) Yahoo News
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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