Must Read: After the Great Recession, many banks focused on jumbo mortgages – loans too large to be bought by Freddie and Fannie. However, a combination of unfavorable tax policy, higher mortgage rates and slowing price gains and a generally-softening high end market are leading to dropping origination volumes and headwinds to the bottom line.
Not Budging: It seems as if nothing can nudge long-dated US Treasuries higher these days. See Also: A substantial portion of the yield curve is now inverted. But See: The danger in misreading the inversion of the yield curve.
Meh: The Chicago Fed National Activity Index for February showed sluggish growth.
Today I Learned: Private prison REITs are actually a real thing. Perhaps I’m behind the times on this but I honestly had no idea.
Growing Concern: Some building owners are growing skeptical of WeWork as a viable tenant.
Imbalance: California has plenty of good jobs but not nearly enough units to house workers in and its only getting worse.
Can’t Catch A Bid: Demographics and changing preferences have resulted in a glut of Baby Boomer McMansions in sunbelt states that no one seems to want. But See: New research shows that housing is a better investment than previously believed due to returns from imputed rents.
Irony: The increasingly familiar trend of streaming service providers becoming content creators likely means that the future of internet-based TV looks quite a bit like the cable bundle that it supposedly replaced.
Fraud of the Year: A man stole $122 million from Facebook and Google by sending them random fake invoices, which the companies dutifully paid.
Chart of the Day
The 10-year – 3-month and the 10-year – 1-year Treasury spreads went into negative territory (inverted yield curve), which has been a fairly reliable predictor of US recessions over the years.
Gotta Hear Both Sides: A pantless knife-wielding man who set his SUV on fire in front of a New York police station and was shot by responding cops was charged with arson, menacing a police officer, reckless endangerment and criminal possession of a weapon.
The Plague: Poisonous toads are invading a neighborhood to the point that people can barely walk on sidewalks because Florida.
Carry On: A man attempted to smuggle an orangutan out of Indonesia in his luggage because Russia.
Landmark Links – A candid look at the economy, real estate, and other things sometimes related.
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