What I’m Reading
Locals Only: The greater Phoenix area has record demand for new rental housing. However, cities are pushing back, leading to higher prices. AZ Big Media Looks like California has exported its shitty land use politics as more Golden State residents move to the desert.
Cooling: August’s CPI numbers put more weight behind the transitory inflation case. Crossing Wall Street See Also: The case for transitory inflation is growing as idiosyncratic price spikes due to reopening and troubles in the motor vehicle supply chain fade or reverse. The Overshoot
And There It Is: The most recent Ways and Means Committee tax proposal has taken out many of the provisions that would have stung real estate investors. While there will likely be some pain here, momentum is headed in the right direction at the moment. Globe Street
Moderate Expectations: So far, inflation expectations have remained remarkably steady despite today’s strong price pressures. This is in sharp contrast to the 1970s and 1980s when aggressive inflation expectations took hold. Derivative Logic
Transit Headache: Even as offices reopen with safety plans, big city commuters are reluctant to use mass transit to get back to the office. This is going to be a major issue in cities like New York that are highly reliant on trains and busses for office workers. Wall Street Journal
Chart of the Day
The historical relationship between inflation and the 10-year treasury yield has broken down badly.
Source: Ben Carlson
WTF
Head for the Border: Taco Bell is launching a monthly pass that would give subscribers one taco a day for 30 days. Perhaps plumbing infrastructure is an overlooked business segment that deserves a look. KTVU
Catch: A 39 year old Tennessee man cut off his penis and threw it out of the car window while being chased by the police, claiming that he heard voices on the radio telling him it would ‘save the world.’ Daily Mail
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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