Irrational behavior by buyers confidently betting on being able to pass on that irrationality to their customers. It works until it doesn’t.
This sort of sudden structural collapse in demand for office space raises some existential questions for landlords.
The promise of high-value services exports to rationalize globalization turned out to be fake.
“We will not be anywhere near as focused on buybacks going forward as we have in the past”: Intel’s new CEO.
Dark humor, street art, gritty beauty, and misery in an ugly time.
This is just freaking nuts. It explains the record trade deficits, bottlenecks, shortages, and inflation pressures, among other distortions.
The BoE is assessing if contagion from this scandal could spread to the broader housing market and cause a new financial crisis.
The US rental market has been thrown into turmoil. But in no major city have rents plunged from so high by so much so fast as in San Francisco.
Even the Fed’s repressed inflation measure without food and energy rose 2.3% annual rate.
The winner in these crazy bidding wars isn’t the buyer. It’s the seller. For buyers, it’s a Perfect Time to make a Terrible Deal (transcript).
Industry-wide issue “may not be fully resolved until 2022”
Imports of consumer goods spiked by 38%. Imports are not a sign of economic strength, but are a drag on GDP.
Only exception: San Francisco Bay Area condo prices, down from year ago.
Smaller companies too: Boots-on-the-ground view of surging costs in the roofing manufacturing industry. The Fed will brush it off as “temporary,” but the inflationary mindset has set in.
Here are the towns that offer the biggest incentives to remote workers who make the move. I’m rooting for Tulsa, which has been able to attract hundreds of “remoters.”
And for buyers, it’s a Perfect Time to make a Terrible Deal. The winner in these crazy bidding wars is the seller.
Central banks still brush it off as just “temporary.”
They’re not taking mass transit, that’s for sure.
There is no shortage of spec homes.
Landlords failed to disclose how much they had to fork over to office tenants to get even these reduced rents. Since we have holdings on the Peninsula, we know the real numbers first-hand.
No housing market can handle the perversity of vacant homes being used as leveraged investment vehicles to generate capital gains by just sitting there.
A “distributed operational workforce” with a net reduction in demand for office space facing a business premised on endless growth.
Housing craziness is front and center.
Getting massacred on the edge of the stock market.
Commercial bankruptcy filings drop to lows last seen in the loosey-goosey days just before the Financial Crisis.
But shipment volume, though strong, is not at record levels.
My Site Will Remain Open for All to Read, Even as More Sites Put Up Paywalls.
Wolf Richter on “This Week in Money.”
Archegos shows how leverage is the great accelerator of stock prices on the way up, and on the way down. One of its bets, ViacomCBS collapsed by 60%.
People massively chased their dream and started new businesses, and that is wonderful. Then there’s the issue of large-scale PPP loan fraud.