What I’m Reading
Drop it Like It’s Hot: Mortgage rates rose earlier in New Zealand’s white-hot housing market than they did in the US. Buyers there have moved on from the FOMO phase and are beginning to drop contracts, putting pressure on builders as demand softens. (h/t Annie Radecki) OneRoof
Staying Put: Despite a surge during COVID, US mobility has been falling for decades and the problem is getting worse as affordability issues intensify. When people want to move but can’t, it leads to economic stagnation and political polarization. Vox
Tail Risk: The Fed and ECB are moving aggressively to sanction Russia, causing the ruble to crater and potentially sparking a bank run. This will exact a very high cost on Russia for starting a war. However, it could also create a situation where China comes to Russia’s rescue and/or begins the process of selling US treasuries – which would tank its own economy (and ours) – giving itself less exposure in the event that it moves against Taiwan. The Atlantic
Up, Up and Away: Corporations are raising prices but consumers show no signs of slowing down, continuing to spend aggressively. New York Times
Getting Creative: The amount of warehouse space available in some markets is so insufficient that firms are renting properties that can be adapted to suit their purposes. Globe Street
Chart of the Day
As a point of reference, the last time this happened to the ruble, Long Term Capital Management blew up. Makes me wonder who out there has leveraged exposure….
Source: Tradingview.com
WTF
Food Fight: Two brothers from Florida were arrested for starting a brawl at a Pennsylvania Golden Corral restaurant after an issue with their steak order (h/t Adam Siegel) Yahoo News
Just Happy to See You? A man was arrested for trying to steal a crossbow from a hardware store by sticking it down his pants because Florida. WTRF
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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