What I’m Reading
Deep Hole: Nearly 20% of American renters are behind on payments. The typical delinquent renter now owes $5,600, being nearly four months behind on their monthly payment, includes utilities and late fees according to a new analysis from Mark Zandi, chief economist at Moody’s Analytics, and Jim Parrott, a fellow at the Urban Institute. About 18% renters in America, or around 10 million people, were behind in their rent payments as of the beginning of the January for a whopping $57.3 billion owed. To put this in context, approximately 7 million homeowners who lost their properties to foreclosure during the subprime mortgage crisis and the ensuing Great Recession. An eviction crisis is becoming a larger threat by the day. Moody’s Analytics
Bracing for Impact: Federal Reserve members are saying that they will look past the (likely) short-term, pent-up-demand-fueled bump in inflation that will come when the pandemic is finally over and focus more on the long term trend. Reuters
Reverse Course: California governor Gavin Newsom abruptly reversed course yesterday and lifted the state’s stay at home order. While this is great news for small businesses, restaurants and retail landlords, it is more than a bit suspect as Newsom and friends refused to disclose the data that led to the lockdown being lifted. In fact, the state appears to be in worse shape than it was when the lockdown was originally ordered. Just speculation but I think that this action has more to do with growing momentum behind a recall effort than it does the pandemic. ABC News
Running on Empty: Empty but leased office buildings are still using a huge amount of energy thanks to legal obligations under their leases. Fast Company
Chart of the Day
Some point to GameStop, Bitcoin or Nikola as being signs of market insanity. I prefer to looks at much-maligned WeWork bonds which are approaching pre-pandemic levels at 77 cents on the dollar.
WTF
It’s Happening: An Oklahoma state legislator has filed a bill proposing a Bigfoot hunting season. This makes sense since elected officials have solved all of our real problems and can now dedicate valuable time to debate over a hunting season for an urban legend. The Hill
Pit Stop: While paramedics were on a call, a Texas man last night jumped into an ambulance and drove the vehicle, with lights flashing to a Jack in the Box where he ordered food in the drive through lane before being arrested. The Smoking Gun
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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