What I'm Reading Cash Trap: The rapid appreciation of the dollar this year helps boost the exports of weaker countries while alleviating inflationary pressures in the US by lowering the cost of imports. However, it also translates into higher import prices, more costly external debt servicing and greater risk of...
May 17th – The Waiting Game
What I'm Reading The Waiting Game: Buyers who signed contracts for new homes are now facing the risk that rising mortgage rates will make them unable to afford it by the time the home is completed. Wall Street Journal Open the Gates: More than four dozen former national security leaders...
May 13th – Can’t Fix Stupid
What I'm Reading Can't Fix Stupid: California's Democratic State Senate Leader Toni Atkins is proposing to spend $10 billion to help families buy homes. The proposal would create a revolving fund that would provide interest-free loans for up to 30% of the purchase price of a home for low- and...
May 12th – Pushback
What I'm Reading Pushback: Consumers are doing less grocery shopping online as health concerns fade and consumers become more cost conscious thanks to inflation. Chain Store Age Offshored: The tech industry is warning that more remote jobs are headed out of the US thanks to worker shortages and a lack...
May 11th – Long in the Tooth
What I'm Reading Long in the Tooth: The average US warehouse is 42 years old and only 14% of warehouses are less than 10 years old. This is a big problem in an industry that is changing rapidly where older product tends to be functionally obsolete. Newer buildings typically have...
May 10th – Clearing the Deck
What I'm Reading Clear the Deck: Western ports are bracing for increased congestion when China eventually lifts stringent Covid-19 restrictions in major cities, which could come just as many importers start to load up for the back-to-school and holiday shopping seasons. The race is on to clear existing cargo and...
May 4th -Falling Behind
What I'm Reading Substitution Effect: Executives running some of the world’s biggest retailers, manufacturers and consumer-products makers say they are seeing signs that people are becoming less willing to absorb price increases. This includes an uptick in demand for discount products. Wall Street Journal Falling Behind: Debt funds, life insurance...
May 3rd – Dried Up
What I'm Reading Dried Up: Refinance activity has dried up and isn't expected to rebound this year per Old Republic Title's earnings call. Housing Wire Drying Out: Arizona has become the first state to experience deep cutbacks caused by a drought-fueled decline in the Colorado River. The reduction will hit...
April 22nd – Tough Nut to Crack
What I'm Reading Tough Nut to Crack: The price of a home sold in March set a record, as inventory dwindled and sales fell. Sharply rising mortgage rates are not showing much of an impact on housing yet. CNBC As discussed here previously, I believe that structural factors in the...
April 20th – Stay
What I'm Reading Staying Put: Nine out of ten mortgages in America carry an interest rate of less than 5%, which is the official level at which most new 30-year fixed-rate mortgages are now being written. Expect homeowners to hold onto their houses longer. Axios Sounding the Alarm: A Riverside...