What I’m Reading
Make it Rain: An LA Times review of state data found that it routinely costs more than $1m per unit to build a subsidized affordable housing unit in California. Between prevailing wage requirements, high material and regulatory costs, the process has become so bloated with corruption and waste that its now a self parody. LA Times Anytime the state implements a program like this, constituents put their hands out for payoffs and the end result is a program that does next to nothing to solve the problem it was designed to actually deal with. Sad.
Mismatch: Long manufacturing lead times are making it difficult for retailers to match supply with demand, leading to an inventory pile up. Wall Street Journal The bullwhip effect is in full force. Expect future discounts.
Running on Empty: A leaked Amazon internal research memo shows that the company will deplete its available labor supply by 2024, sooner in some markets. The issue is a combination of low pay and difficult working conditions. Looks like a lot of future logistics growth will be highly reliant on the ability to automate. Fortune
Pulling the Plug: Cryptocurrency companies poured billions of dollars into sports sponsorships in 2021. However, as crypto collapses in 2022 they are scrambling to get out of future deals. New York Post
Full Pipeline: Housing starts are slowing as visibility on the economy and capital costs continue to deteriorate. However, there will be a sharp increase in new supply in 2022 thanks to supply chain issues that have lengthened the time from start to completion, leading to a record amount of units under construction. Calculated Risk
Chart of the Day
This level of commitment is actually quite impressive, IMO.
Source: Bloomberg
WTF
Stash: A woman who was pulled over for expired license plate tags was busted hiding meth in her bra because Florida. Villages-News
Incorrect Change: A man who was denied service for trying to purchase a snack with car wash tokens at a store got his revenge by filling the store’s locks with glue because Florida. Tampa Free Press
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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