Vital Statistics:
Last | Change | |||
S&P futures | 2855.5 | 3.8 | ||
Eurostoxx index | 383.49 | 2.43 | ||
Oil (WTI) | 65.92 | 0.02 | ||
10 Year Government Bond Yield | 2.84% | |||
30 Year fixed rate mortgage | 4.58% |
Stocks are higher this morning on optimism of a deal with China. Bonds and MBS are up small.
Late August is a generally dull time to begin with, and this week promises more of the same. We will get some housing data (Existing home sales, new home sales, FHFA price index) and one possible market-moving report (durable goods) but that is about it. We will get the FOMC minutes on Wednesday as well.
Liquidity is drying up in the bond market as it usually does this time of year. Note that the short bond position is one of the biggest on the Street, so we could see some quick rallies in the 10 year.
Flagstar has been released from special oversight that limited its corporate options to pay dividends, make acquisitions, etc.
Luxury apartments in NYC are falling in price, after years of torrid growth. Some are blaming the new tax laws, however some could be from falling foreign demand. We are seeing the same thing in London. Note that luxury properties in the suburbs of NYC are doing the same thing. You can’t give away properties priced at $1MM +
Fannie Mae cut their housing forecast for 2018 for the 4th time this year. They are looking for $1.67T in originations this year and $1.7T next year. The 30 year fixed rate mortgage is expected to average 4.5% this year and 4.7% next year. They are also forecasting a major slowdown in GDP growth, from 3% this year to 2.3% next year.
Filed under: Economy, Morning Report |
Worth noting vis-a-vis Anthony Bordain’s suicide.
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So rent control is good, but this is bad?
https://slate.com/business/2018/08/californias-proposition-58-has-created-a-whole-lot-of-second-homes-and-rental-properties.html
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Yes, because one benefits only the poor and is a government mandate that in many ways punishes evil property owners, while the other benefits lots of different people and who gets benefited and how much isn’t micromanaged by the state.
Is the alternative being proposed just doing away with Prop 58? While presumably doing nothing to adjust tax rates?
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Presumably they want to do with Proposition 13 too. Anything that restricts raising taxes.
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I imagine that will be hard to do, given who owns much of the grandfathered properties. But perhaps they’ll make it happen.
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Apparently free tuition is to be applauded, unless it helps the wrong people:
https://slate.com/business/2018/08/nyu-medical-school-plans-free-tuition-for-all-what-a-waste-of-money.html
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I wasn’t aware that the “free tuition” thing wasn’t supposed to apply to everybody. I don’t recall advocates mentioning who would be excluded due to expectations of future wealth
So, presumably, arguments for free tuition, generally, would exclude things like literary degrees and feminist studies and other things nobody really wants that offer no value to the larger community.
A: that’s racist and B: lots of extra urologist might be better service and/or lower prices for regular folks needing a urologist. I think that’s a win!
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I think Surplus Value Barbie is just the mirror image of Sarah Palin…
https://www.vox.com/explainers/2018/8/20/17674910/conservatives-republicans-ocasio-cortez-democratic-socialist-2018-midterms
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That’s a great analogy.
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Well, I liked Palin and like her still, though not as much. I like Ocasio-Cortez, too.
Though if Orasio-Cortez faced the same kind of media hitjob that Sarah Palin did, she’d be dead in the water already.
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KW:
Though if Orasio-Cortez faced the same kind of media hitjob that Sarah Palin did, she’d be dead in the water already.
Yup. Imagine the SNL parodies that would be available if SNL was an equal-opportunity mocker.
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This part I thought was funny (quoting Nate Silver):
That’s not a plus for Ocasio-Cortez. It’s an extremely low bar to reach for, it seems, and if nothing else it is at least more of a condemnation of congress than a recommendation for Ocasio-Cortez.
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Interesting read:
“Not enough people are paying attention to this economic trend
By Bill Gates
August 14, 2018 ”
https://www.gatesnotes.com/Books/Capitalism-Without-Capital
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jnc:
Interesting read:
Good link. Thanks.
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I think Vox is fake news.
https://www.vox.com/policy-and-politics/2018/8/20/17759468/2018-republican-nominees-trump-brookings-study-midterms
In Tennessee, all the campaign ads have been “I’m with Trump, I’ll support president Trump”, all the time.
Yet one of the examples Vox cites is Bill Lee beating Diane Black, saying “Diane Black” had been touting herself as Trump’s choice. But they both were doing that, and someone had to lose, so of course when every candidate is saying “Trump is awesome”, one of the “Trump is awesome” candidates is going to lose.
The real story:
https://www.memphisdailynews.com/news/2018/jul/26/tennessee-gop-governors-race-turns-to-spat-over-trump-immigration/
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Mostly these days Vox is acting as the paid promotional agent for “Crazy Rich Asians”, judging by the number of posts on the subject and the tenor of the coverage.
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Democrats propose the next logical step to fight Russia:
“Democrats want Facebook to tell them who has seen disinformation
by Donie O’Sullivan
August 8, 2018: 3:20 PM ET”
https://money.cnn.com/2018/08/08/technology/dnc-facebook-disinformation/index.html
China is one step ahead of them though:
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Slate wouldn’t be down on that story if, instead of Muslims, China had rounded up all the climate change deniers.
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Good read:
“The Dangers in the Trump-Brennan Confrontation
By Jack Goldsmith
Monday, August 20, 2018, 9:01 AM”
https://www.lawfareblog.com/dangers-trump-brennan-confrontation
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Can someone explain to me why revocation of security clearances once one is no longer employed by the government is not simply standard operating procedure? I genuinely don’t understand why spending a few years in government should entitle one to access to intelligence secrets for the rest of one’s life.
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Because there’s no good reason to revoke it as it doesn’t actually entitle one to view classified material on it’s own. It’s merely a prerequisite for access being granted.
And since they are needed for contracting, it would just clog up the system (which is already backlogged) to have to reapply for them again for every new job or position.
There’s no defending Trump here on policy grounds. He’s just being an asshole because he can be.
Sort of like LBJ.
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Thanks.
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Brennan isn’t a particularly defensible representative of this cohort though. Love to know what Wyden or Feinstein think.
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Yes, Brennan is the one who actually makes Trump’s reaction look understandable.
Which is precisely Goldsmith’s point in the piece about how they are playing into his hands.
Charles Pierce had the opposite take:
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This is my question. Not such much why was Brennan’s clearance revoked, but why isn’t everybody’s who has no demonstrable need to know and has left government.
And that you lose your security clearance if you start working for a media outlet would seem like it should be automatic. But also if you start working for lobbyists or anyone who sells to the government … keeping clearance out of the position should be on a case-by-case basis.
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Kev, some automatically lose their clearances, I think this is true for FBI retired agents who were not in CounterIntel and some military officers. But the retired spymasters generally remain cleared so their successors can call them in and share new intel on old stuff and pick their predecessors brains and memories.
For some types of clearances, such as those granted at NIH, NSF, CDC, and NRC, the clearance is one that allows the scitech guy to move in rarified research circles in private employment, for example, supervising a nuclear power plant, or working on anti bacterial warfare agents in a university lab.
The former spymasters do NOT have access to any material that I don’t have access to, unless a current spymaster pulls them in for a consultation and shares info, that the current guy could not, for instance, share with me.
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That makes sense. Although we seem to have a lot of people with security clearance.
https://www.washingtonpost.com/news/the-switch/wp/2014/03/24/5-1-million-americans-have-security-clearances-thats-more-than-the-entire-population-of-norway/?noredirect=on&utm_term=.f565863c91ac
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Pretend and Extend worked in Greece.
https://www.theatlantic.com/international/archive/2018/08/greece-bailout-imf-europe/567892/
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The French and Italian banks owned all of the Greek sovereign debt. What is he talking about when he says it was about punishing the French and Italians?
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More like warning them against any restructuring schemes that didn’t involve full repayment of government debt.
The point about Brexit voters paying attention to Greece has merit though, and is usually overlooked as it implies that they are something other than immigrant hating yokels.
This is what’s being referenced in terms of Greece being punished to set an example:
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Another good piece:
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The Dude hardest hit.
https://www.rollingstone.com/music/music-news/eagles-greatest-hits-overtakes-michael-jacksons-thriller-as-best-selling-album-713224/
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So, either no one got The Big Lebowski reference or didn’t think it was funny. Either way, it speaks VOLUMES about y’all!
It was COMEDY GOLD!
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I confess that I missed it.
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