What I’m Reading
Lockdown: China has locked down the business center of Shenzhen, a city of 17 million people which includes one of the country’s largest port complexes, due to a COVID outbreak. NBC News In a “normal” environment, this would be headline news but it isn’t being discussed that widely yet thanks to the Ukraine invasion. This is a big deal and will absolutely cause more supply chain/inflation problems.
Political Risk: With the housing market tight and rents exploding higher in much of the country, an increasing number of municipalities are considering rent control measures. Wall Street Journal What is most astounding here is that this hasn’t worked anywhere that its been tried and typically makes the situation worse. But why let the facts get in the way of a decent sounding narrative?
Hungry Hippos: PE giants are allocating capital to real estate at a blistering pace, as the sector continues to outperform fixed income on a relative basis. Consultants expect the trend to continue to accelerate over the next decade. Evergreen Memos
Self Inflicted Wound: International migration to the US has fallen dramatically since 2016. Some of this was due to COVID but at least as much was due to bad, short sighted policy. Econofact With birth rates falling, turning this trend around is the best way to grow the economy and deal with labor shortages.
Bid ‘Em Up: We have become accustomed to seeing bidding wars for houses that go on the market for sale. Now its happening for apartments as well. A new report shows that one in five New York apartments faces a bidding war among renters. Crain’s New York Business
Chart of the Day
So, I have this wild theory about our worker shortage….
Source: Econofact
WTF
Taste Tester: Concerned that the meth he had purchased was actually bath salts, a man dialed 911 and asked police to test his stash, a request that resulted in his arrest on multiple drug charges because Florida. The Smoking Gun
Open Carry: A 27-year-old man who identified himself as a homeless model is facing criminal charges for masturbating in public view at a Starbucks because Florida. Local10.com
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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