What I’m Reading
Calm Before the (Next) Storm? In the first two months of 2022, the queue of ships waiting for Southern California berths fell, velocity of cargo moving through terminals increased and more boxes were unloaded at Southern California docks. However, part of the improvement may be due to the typical seasonal slowdown in inbound traffic during the lunar new year. In addition, the COVID lockdowns in Shenzhen could lead to a “hockey stick” of inbound cargo volumes after factories reopen. Freight Waves
Money Maker: The increase in value of typical US homes exceeded median worker income for the first time in history according to Zillow. Wall Street Journal
Bottleneck: There are a huge number of housing units in the US that have been permitted but not started, primarily due to a shortage of building supplies keeping a lid on starts. Bonddad Blog
Priced Out: Home sales fell in February amid tight supply and rising mortgage rates. As a point of reference, the typical monthly mortgage payment for a newly originated loan in February rose 28% from a year earlier per the NAR. Wall Street Journal
Staying Power: Expensive oil, rising rents, expensive wheat and corn and continuing supply chain disruptions will all have to ease before inflation falls. It looks increasingly unlikely that this will happen in 2022. Full Stack Economics
Chart of the Day
US 10-3yr curve is basically inverted.
10-2yr is up next.
Source: The Daily Shot
WTF
The Naked Gun: A naked man who opened fire on sheriff’s deputies responding to a domestic incident has been arrested because Florida. Click Orlando
Grand Theft Turtle: A repairman was arrested for stealing $30,000 worth of turtles from a breeder after he was called out to fix a beverage cooler because Florida. Yahoo News
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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