Mark Twain once said, “I didn’t have time to write you a short letter, so I wrote a long one.”
When writing (and speaking) it’s fairly easy to let the words flow without much regard to precisely communicating. If one gets into a stream of consciousness state it can be helpful for the writer and speaker to release what’s welling up inside but this may not be what’s best for the reader or listener in terms of communicating clearly,
I have been turning to charts more regularly for my weekly blog posts than I have in the past. Like most people, I see many of the challenges and price pressures resulting from the massively disrupted global supply chain. It shows up in terribly unreliable contractors (I’m having a pool built so I am experiencing this first hand) and the significant increase in the cost of materials that are leading to the rationing of some goods like plywood and even chlorine.
Last week I discussed the possibility that housing could be the canary in the coal mine with regard to an important area of the economy starting to be impacted by higher prices. I wanted to go more in-depth with many more housing-related charts and then end with one non-housing chart that I think trumps everything else in terms of why I think the Fed will remain on hold in terms of raising rates.
[UPDATE] 3:00 PM Egypt – 6 AM PST the Ever Given was refloated and is on the move again. Credit is given to the full moon bringing the spring higher tides, 14 tug boats, and the 27,000 meters of sand removed. The following was written prior to this news.
Economic growth is projected to increase quite substantially now that the $1.9 trillion stimulus has been passed. The following chart shows that economists are forecasting the strongest growth since the Reagan years.
Not surprisingly, a lot of this projected growth is predicated on the spending of built-up savings from multiple stimulus packages that have passed and been disbursed.
I was privy to a conversation between two females, one of whom is a senior in high school. She was lamenting the fact that her English teacher had given her class an assignment to write a sonnet. This caught my attention as, while I have expressed myself a few times over the years by writing haikus,
I subscribe to The Daily Shot which is an economics and finance-oriented site that aggregates a tremendous number of charts to give investors a great visual overview of key aspects of the economy, both domestic and global, as well as financial markets.
A couple of weeks ago, I had the pleasure of traveling to Alaska for a small CWS planning meeting on a private boat. To enter Alaska without being quarantined, one had to prove he or she tested negative for COVID, which fortunately I did.
CWS has a sister company that focuses on corporate housing. They provide temporary housing for business people, interns, long-term, special projects for companies, etc. I am one of the advisory board members and it’s been such a treat to see how the company has grown and prospered over its 25 years in business.
With rent control being passed in California, Oregon, and New York, government intervention in rental housing is heating up. This is something we have been predicting for a number of years given the housing shortage and relatively stagnant wages for lower to middle-income earners. We also had a lot of experience with it when we owned manufacturing housing communities where it was much more widespread than apartments so we had a sense of the conditions that would lend itself to rent control pressures.
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