The Higher Standard

As a series of U.S. lenders were besieged by customers yanking out their money this month, banking giants such as JPMorgan Chase & Co, Citigroup Inc. and Bank of America Corp. warned employees: Do not make it worse. JPMorgan, the nation's largest bank, told all employees they "should never give the appearance of exploiting a situation of stress or uncertainty," in a March 13 memo. "We do not make disparaging comments regarding competitors."

In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.

They discuss data showing that customers have recently pulled nearly $100 billion in deposits, while Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and more than a dozen other officials convened a special closed meeting of the Financial Stability Oversight Council.

Chris and Saied look at news that Deutsche Bank’s stock plunged Friday as the market hones in on the German firm as the next major bank at risk in the wake of long-time rival Credit Suisse’s collapse and similar events stateside. Frankfurt-listed shares of Deutsche Bank dropped 7.5%, now down more than 25% since March 8, when confidence in the international banking system began to crumble.

They also offer some thoughts on data from Trepp, an analytics provider for the Structured Finance, CRE, and Banking markets, indicating that this year, roughly $270 billion in commercial mortgages held by banks are set to expire. This means that big owners of property face the prospect that beleaguered banks, especially smaller ones, could get more aggressive with lending arrangements, giving landlords even less room to breathe as they try to refinance a mountain of loans coming due.

Join Chris and Saied for this fascinating and informative conversation.

Enjoy!

What You’ll Learn in this Show:

• Paul Volcker’s monetary policy career and Ben Bernanke’s role in AIG bailout.
• Jerome Powell's role in the current banking crisis.
• The two different types of lender in the commercial real estate space.
• Why JP Morgan and Bank of America have been telling staff not to poach clients from stressed competitors.
• And so much more...

Resources:

"Volcker Slayed Inflation. Bernanke Saved the Banks. Can Powell Do Both?" (article from Bloomberg)

"Exclusive: JPMorgan, Citi, BofA tell staff not to poach clients from stressed banks" (article from Reuters)

"Nearly $100 billion in deposits pulled from banks; officials call system ‘sound and resilient’" (article from CNBC)

Custodia Bank via Twitter

"Veteran of FDIC Takeover Tells What It’s Like to Run a Failed Bank" (article from The Wall Street Journal)

"What’s Going On at Deutsche Bank?" (article from The Wall Street Journal)

"Commercial real estate is in trouble. A banking crisis will make it worse." (article from Yahoo! Finance)

"Elon Musk says Jerome Powell is so bad at his job that GPT-4 would be a better Fed chair: ‘This foolish rate hike will worsen depositor flight’" (article from Yahoo! Finance)

Recession chatter has returned on Wall Street as markets deal with the blow of several bank failures and the potential economic aftermath. The likelihood of a U.S. recession is back on the rise for the first time since November 2022, according to the latest Bank of America fund manager survey released on Tuesday. About 42% of fund managers surveyed see a recession happening within the next 12 months, up from 24% in February. While fund managers aren't in universal agreement on a recession, they are almost in unison on the economy being stagnant over the next 12 months.

In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.

They discuss data released by the Census Bureau, stating that housing starts, a measure of new home construction, rose by 9.8% in February from January, though that’s still down 18.4% from a year ago. Starts in January rose to a seasonally adjusted annual rate of 1.450 million, up from the revised January estimate of 1.321 million.

Chris and Saied look at news that the Securities and Exchange Commission has unveiled fraud and unregistered securities charges against crypto founder and Grenadian diplomat Justin Sun, alongside separate violations against the celebrity backers of his Tronix and BitTorrent crypto assets, which included Jake Paul, Lindsay Lohan and Soulja Boy.

They also offer some thoughts on a review by Bloomberg News indicating that, in terms of layoffs, 2023 had the the worst start to a year since 2009, with nearly 52,000 jobs lost in one week in January alone. Since Oct. 1, executives across sectors have sacked almost half a million employees around the world.

Join Chris and Saied for this fascinating and informative conversation.

Enjoy!

What You’ll Learn in this Show:

• Why small regional banks really help small to midsize businesses.
• The importance of understanding that the FOMC’s economic projections are not linear.
• The difference between the Federal Deposit Insurance Corporation (FDIC) and the Federal Deposit Insurance Agency.
• The importance of getting permits before you apply for a construction loan.
• And so much more...

Resources:

"Yellen: U.S. Could Intervene Again to Protect Banking System" (video from The Wall Street Journal)

"Home Prices Fell in February for First Time in 11 Years" (article from The Wall Street Journal)

"Global layoffs stretch far beyond big tech" (Bloomberg Business via Instagram)

"‘Already past the point of no return’: JPMorgan says the U.S. is probably headed for a recession as economic ‘engines are about to turn off’" (article from Fortune)

"Gen Z is racking up credit card debt faster than any other generation" (Businessweek via Instagram)

"BofA: 'Recession fears are up in March'" (article from Yahoo! Finance)

"Goldman boosts US recession odds after slashing GDP forecast" (article from Yahoo! Finance)

"U.S. SEC threatens to sue Coinbase over some crypto products" (article from Reuters)

"Fed Raises Rates but Nods to Greater Uncertainty After Banking Stress" (article from The Wall Street Journal)

"Home sales spike 14.5% in February as the median price drops for the first time in over a decade" (article from CNBC)

"US home building surged in February" (article from CNN)

"Irvine company to build 4.5K apartments in Irvine" (article from TheRealDeal)

"LA cuts revenue predictions from new transfer tax by 25%" (article from TheRealDeal)

"SEC charges Tron founder Justin Sun, celebrities Lindsay Lohan, Jake Paul with crypto violations" (article from CNBC)

"Jake Paul earned over $2 million by promoting pump and dump crypto schemes" (article from Cryptoslate)

"11 things millennials ruined" (article from Mashable)

Banking giant UBS is in discussions to take over all or parts of Credit Suisse, with the boards of Switzerland's two biggest lenders set to meet separately over the weekend. The Swiss National Bank and regulator FINMA are organising the talks in an attempt to build confidence in the country's banking sector. On Friday evening, Swiss regulators informed their counterparts in the United States and United Kingdom that the merger of the two banks was their "Plan A" to salvage the confidence in Credit Suisse. Several other options are also under discussion between the two banks as both sides try to evaluate regulatory constraints in different jurisdictions.

In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.

They discuss an 85-year long study by Harvard researchers indicating that, while particular roles can’t be reliably correlated with dissatisfaction and burnout, certain job characteristics can be. Jobs that require little human interaction and don’t offer opportunities to build meaningful relationships with co-workers tend to have the most miserable employees, the study found.

Chris and Saied look at news that Bitcoin has climbed to a nine-month high as turmoil in the banking sector drives some investors to turn to digital assets. It rose as far as $28,567, its highest since mid-June, and was last up 0.9%, amid growing expectations that central banks would slow the pace of interest rate hikes.

They also offer some thoughts on contingent convertible bonds, or CoCos, often described as high-yield investments with a hand grenade attached. The UBS takeover of Credit Suisse has pulled the pin on $17 billion of them.

Join Chris and Saied for this fascinating and informative conversation.

Enjoy!

What You’ll Learn in this Show:

• What’s happened at the Federal Open Market Committee (FOMC) meeting on Tuesday.
• Why Switzerland is known for having low levels of financial risk and high levels of privacy.
• Why the axing of Credit Suisse’s $17 billion contingent convertible (CoCo) debt has big implications for the newly combined bank and the wider market.
• Bitcoin's climb to a nine-month high as turmoil in the banking sector sparks a rally.
• And so much more...

Resources:

Markets and Mayhem via Twitter

"UBS in talks to acquire Credit Suisse" (article from The Financial Times)

Ulrich Körner via Wikipedia

"UBS buys Credit Suisse for $3.2 billion as regulators look to shore up the global banking system" (article from CNBC)

"UBS Agrees to Buy Credit Suisse for More Than $3 Billion" (article from The Wall Street Journal)

"Big Banks Best Positioned to Weather Crisis: Morningstar" (article from The Street)

"Credit Suisse's $17 billion of risky bonds are now worthless" (Bloomberg via Instagram)

"Why $17 billion in risky debt was wiped out in Credit Suisse rescue deal" (Bloomberg via Instagram)

Zerohedge via Twitter

"Bitcoin climbs to 9-month high as bank turmoil sparks rally" (article from Reuters)

"85-year Harvard study found that people with this type of job tend to be the unhappiest" (article from CNBC)

"Local Banks Could Leave Gaps That Are Hard to Fill" (article from The Wall Street Journal)

In a morning where more banking turmoil emerged and stocks opened sharply lower on Wall Street, traders shifted pricing to indicate that the Fed may hold the line when it meets March 21-22. According to CME Group data, the probability for no rate hike shot up to as high as 65%. Trading was volatile, though, and the latest moves suggested nearly a 50-50 split between no rate hike and a 0.25 percentage point move. Chairman Jerome Powell and his fellow policymakers will resolve the question over raising rates by watching macroeconomic reports that continue to flow in, as well as data from regional banks and their share prices that could provide larger clues about the health of the financial sector.

In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.

They discuss the Census Bureau's most recent Household Pulse survey, which indicates that about 36% of consumers say it has been "somewhat" to "very difficult" for them to pay their usual bills in the last seven days.

Chris and Saied look at data from the Labor Department, revealing that inflation rose in February but was in line with expectations, likely keeping the Federal Reserve on track for another interest rate hike next week despite recent banking industry turmoil. The consumer price index increased 0.4% for the month, putting the annual inflation rate at 6%.

They also offer some thoughts on news that Credit Suisse Group AG is borrowing up to 50 billion Swiss francs, equivalent to $53.7 billion, from the Swiss central bank to shore up its liquidity, capping a day in which fears about the health of global banks leapfrogged to Europe from North America and the giant lender’s shares dropped as much as 24%.

Join Chris and Saied for this fascinating and informative conversation.

Enjoy!

What You’ll Learn in this Show:

• Why the CPI will likely continue to come down.
• The real cause of the recent bank failures.
• Why Bank of America received more than $15 billion in deposits after the failure of Silicon Valley Bank.
• The levels of regulatory scrutiny banks are required to have as they grow.
• And so much more...

Resources:

"Bank stocks rebound, but crisis makes the Fed’s next move harder" (article from The Washington Post)

"Where inflation is... and isn't" (Yahoo! Finance via Instagram)

"BofA Gets More Than $15 Billion in Deposits After SVB Fails" (article from Bloomberg)

"What’s going on with Silicon Valley Bank?" (Dave Ramsey via Instagram)

"Goldman Sachs no longer expects the Fed to hike rates in March, cites stress on banking system" (article from CNBC)

"Stablecoin USDC breaks dollar peg after firm reveals it has $3.3 billion in SVB exposure" (article from CNBC)

"More Americans say they can't pay their bills. Here are the states where it's worst." (article from CBS News)

"Banks Borrow $164.8 Billion From Fed in Rush to Backstop Liquidity" (article from Bloomberg)

"One of the best ways to figure out what the Fed will do next is to look at regional bank stocks" (article from CNBC)

"Credit Suisse Promises Overhaul in Wake of Rout as Regulators Offer Lifeline" (article from The Wall Street Journal)

"Economy Shows Signs of Cooling as Bank Troubles Spread" (article from The Wall Street Journal)

"Wholesale prices post unexpected decline of 0.1% in February; retail sales fall" (article from CNBC)

"Inflation gauge increased 0.4% in February, as expected and up 6% from a year ago" (article from CNBC)

"Moody's cuts outlook on U.S. banking system to negative, citing 'rapidly deteriorating operating environment'" (article from CNBC)

As we already know, Silicon Valley Bank, one of tech’s favorite lenders, has collapsed, becoming the second-largest bank failure in US history. The bank’s blowup has sent shockwaves across the tech sector, Wall Street, and Washington, amid concerns that other banks could be in trouble or that contagion could set in. In the days after SVB’s collapse, the panic appeared to spread, leading to the failure of additional banks, including Signature Bank of New York, which had bet on crypto. But it’s not clear how serious the fallout will be.

In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.

They discuss news that Goldman Sachs no longer believes that the Federal Reserve will deliver a rate hike at its meeting next week, citing “recent stress” in the financial sector.

Chris and Saied look at comments from US Treasury Secretary Janet Yellen indicating that a major government bailout of Silicon Valley Bank is not an option.

They also offer some thoughts on the departure of Silicon Valley Bank CEO Greg Becker from the board of directors at the Federal Reserve Bank of San Francisco.

Join Chris and Saied for this fascinating and informative conversation.

Enjoy!

What You’ll Learn in this Show:

• What actually happened at Silicon Valley Bank and which sector has been hurt most by its collapse.
• Why 14 years of artificial interest rate deflation and unprecedented interest rate increases were guaranteed to create problems.
• The bizarre phenomenon of new jobs being implemented on a monthly basis while layoffs continue to happen.
• How Silicon Valley Bank made the Forbes list of America’s Best Banks for the fifth consecutive year.
• And so much more...

Resources:

"What’s Going on With Silicon Valley Bank?" (article from The Wall Street Journal)

"US Discusses Fund to Backstop Deposits If More Banks Fail" (article from Bloomberg)

"Treasury Secretary Janet Yellen says U.S. government won’t bail out Silicon Valley Bank" (article from CNBC)

"Strong jobs report shows 311,000 jobs added in February" (article from CBS News)

"Fed Rate Pivot Is Back in Play" (article from Bloomberg)

"Goldman Sachs no longer expects the Fed to hike rates in March, cites stress on banking system" (article from CNBC)

"CEO of failed Silicon Valley Bank no longer a director at San Francisco Fed" (article from Reuters)

"Stablecoin USDC breaks dollar peg after firm reveals it has $3.3 billion in SVB exposure" (article from CNBC)

"What Country Has the Most Banks?" (article from HelgiLibrary)

Federal Reserve Chairman Jerome Powell has cautioned that interest rates are likely to rise higher than central bank policymakers had expected. Citing data showing that inflation has reversed the deceleration it showed in late 2022, Powell warned of tighter monetary policy ahead to slow a growing economy. His remarks imply that the peak, or terminal, level of the federal funds rate is likely to be higher than the previous indication from the Fed officials, and also that the switch last month to a smaller quarter-percentage point increase could be short-lived if inflation data continues to run hot.

In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.

They discuss an announcement from automaker Rivian indicating a drop in its cash position. Rivian had cash and cash equivalents of $12.1 billion on hand at the end of December, down from $13.8 billion at the end of the third quarter and $15.5 billion as of June 30.

Chris and Saied look at news that investors have dumped shares of SVB Financial Group and a collection of other U.S. banks after the lender said it lost nearly $2 billion selling assets following a larger-than-expected decline in deposits.

They also offer some thoughts on data from ADP, indicating that private payrolls increased by 242,000 in February, versus the estimate for 205,000 and above the 119,000 in January.

Join Chris and Saied for this fascinating and informative conversation.

Enjoy!

What You’ll Learn in this Show:

• Results of the most recent Job Openings and Labor Turnover Survey (JOLTS) report.
• The voluntary liquidation of Silvergate Bank.
• Demystifying concepts such as 'index plus margin' and a 'run on the bank.'
• Why there is much more at play in banking than just finance.
• And so much more...

Resources:

"Dow closes 570 points lower, turns negative for 2023 as Powell ignites higher rate fears: Live updates" (article from CNBC)

"Fed's Powell again rejects idea of raising inflation target" (article from Reuters)

"Rivian Stuns Investors With Very Bad News" (article from The Street)

"US unemployment is falling even as the economy slows. What the heck is going on?" (article from MarketWatch)

"Fed Chair Powell says interest rates are ‘likely to be higher’ than previously anticipated" (article from CNBC)

"Job openings declined in January but still far outnumber available workers" (article from CNBC)

"Private payrolls rose by 242,000 in February, better than expected, ADP says" (article from CNBC)

"Banks Lose Billions in Value After Tech Lender SVB Stumbles" (article from The Wall Street Journal)

"System Open Market Account Holdings of Domestic Securities" (article from The New York Fed)

"Slack is introducing AI assistant that can write messages for you" (article from Morning Brew)

Home prices have finally fallen from a year-ago levels, according to a commonly used indicator of data. Last month, investors received a slate of home price data for December and January from the National Association of Realtors and S&P Dow Jones Indices. The Realtors Association indicated that the median single-family home sold for $363,100 in January, up 0.7% year-over-year, while December data from the S&P CoreLogic Case-Shiller Home Price Indices' reflected a national price increase of 5.8% year-over-year. More frequent data shows the housing market may have reached a turning point in February, with thin price gains turning into declines. Redfin said on Thursday that its measure of the median home sale price fell by 0.6% over a four-week period covering most of February.

In this episode of The Higher Standard, Chris and Saied examine this news as well as other articles on the US housing market. Housing price and mortgage application indices have reached their lowest levels since the Great Recession in 2007.

Chris and Saied will debunk Dave Ramsey's concept of supply and demand. They also talk about why they believe house prices must fall. Chris will discusses the younger generation's sense of entitlement in the office as well as the concept of communication in the workplace.

Billionaire Charlie Munger expressed his opinion on cryptocurrencies by saying, "It's just ridiculous that anyone buys this stuff." They offer their insights on cryptocurrencies and Charlie Munger's interview. They look at CNBC's reports about crypto bank Silvergate Capital, whose shares have plummeted. According to MarketWatch, Silvergate shares have lost over 97% of their value since hitting an all-time high in November 2021.

Join Chris and Saied for this fascinating and informative conversation about debt, especially for people in their 30s, and what's best thing to do with your money. Spoiler alert: It just might be to keep it in cash.

What You’ll Learn in this Show:

• Why affordability is a powerful factor.
• Why house prices have fallen more slowly in the Midwest.
• How CPI is significantly affected by home prices.
• Shoul you get a salary adjustment if you moved to Utah?
• Some of the biggest misconceptions for consumers when submitting their financial information to a bank.
• Millennials' growing debt.
• And so much more...

Resources:

The housing market correction, as told by 4 charts | Fortune

Billionaire Charlie Munger: Cryptocurrency is 'crazy, stupid gambling,' and 'people who oppose my position are idiots'

Here’s the real challenge facing Silvergate and other 'crypto banks,' says this short seller - MarketWatch

Americans in Their 30s Are Piling On Debt - WSJ

In recent episodes Chris and Saied have highlighted some of the things that get people excited in the current market. Today, however, Chris emphasizes that conditions have changed and there is a new call for concern. Time to be extra observant. Stocks move lower as bond yields extend their gains. The 10-year Treasury hit 4% and the 1-year treasury rose 3 basis points. The Minneapolis Fed Reserve President Neel Kashkari has said that he is open to the possibility of a larger interest rate increase at this month's policy meeting on March the 22.

But first Chris and Saied explore Tim Cramer and the inverse ETF (Exchange Traded Funds) of Cramer. One can literally bet against him to make money. Cramer is well known for his show Mad Money on CNBC. Chris describes how Cramer rose to popularity and still receives a lot of coverage but doesn’t actually have a profitable track record to follow.  He once urged listeners to dump HP stock in 2011 just before it shot up, and he did the same with Netflix and Best Buy in 2012. Is all this being done for entertainment value?

Chris and Saied get into the evolution of social media and what's next for that whole industry. Enjoy a discussion about the second wave of social media and how it may be driven by Gen Z's fundamentally different mindset. They discuss the Be Real app that will encourage people to be truly authentic.

Finally, Chris and Saied dive into Blackstone and the news that it defaulted on a $562 million bond backed by a portfolio of Finnish offices and stores. They dissect the implications of this news.

Join Chris and Saied for this fascinating and informative conversation.

Enjoy!

What You’ll Learn in this Show:

• Why betting against Tim Cramer is a good idea.
• What the big concerns are in the market and why you should be vigilant.
• How home prices and sales can really be a lag indicator.
• What happens when there is less revenue for companies and why some of the ramifications of a recession take time to show themselves.
• Interesting discussion about how Americans get over big news easily, including that of the Chinese balloon and disappearances of Chinese moguls in finance and tech.
• How Gen Z, and in particular teenage girls, will shape the social media landscape of the future.

Resources:

https://apple.news/Av_puaSbTSg6aOiM7mGvBtQ

https://www.cnbc.com/amp/2023/02/28/treasury-prices-fall-slightly-to-close-out-bumper-month-for-yields.html

https://apple.news/Au83a5dJwTwOxXU-n5MTiNw

https://apple.news/ALcINeqAzSoypvOQOMmD5vg

https://apple.news/AsFGWviHCTmmgdYfWEo827g

https://www.thestreet.com/etffocus/blog/inverse-cramer-etf-is-live

https://www.wsj.com/articles/fed-official-says-hotter-data-will-warrant-higher-rates-a0162583

https://www.cnbc.com/2023/03/01/mortgage-demand-falls-interest-rates-rise.html

https://www.cnbc.com/2023/03/02/mortgage-rates-back-over-7percent.html

https://finance.yahoo.com/news/blackstone-defaults-562-million-nordic-160233476.html

https://www.reuters.com/markets/currencies/investors-pull-around-6-billion-out-binances-stablecoin-2023-03-01/

https://www.cnbc.com/video/2023/02/28/below-trend-growth-with-a-rising-unemployment-rate-means-reces…

https://www.morningbrew.com/daily/stories/2023/03/01/elon-musk-master-plan-tesla

A measure the Federal Reserve watches closely to gauge inflation rose more than expected in January, indicating the central bank has more work to do to bring down prices. According to a report by the Commerce Department. The personal consumption expenditures price index excluding food and energy increased 0.6% for the month, and was up 4.7% from a year ago. Wall Street had been expecting respective readings of 0.5% and 4.4%. The core PCE gains were 0.4% and 4.6% in December.

In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.

They discuss a survey from the Philadelphia Fed that indicates 39% of crypto owners said last October that they would likely buy more cryptocurrency as a way to gain wealth.

Chris and Saied look at a research white paper that examines the history of central bank efforts to create disinflation, which states that the Federal Reserve is unlikely to be able to bring down inflation without having to raise interest rates considerably higher, causing a recession.

They also offer some thoughts on ‍a report from Goldman Sachs, which says that, out of the country's 25 largest metropolitan areas, four cities stand out for having particularly dim housing forecasts: Austin, Seattle, Phoenix and San Francisco.

Join Chris and Saied for this fascinating and informative conversation.

Enjoy!

What You’ll Learn in this Show:

• Why the Fed believes that wages and wage inflation will put upward pressure on prices.
• What could happen to the sub-markets of San Francisco and Silicon Valley.
• Why Open Door closed out 2022 with two straight quarters of losses and where it goes from there.
• The duties and role of a Chief Financial Officer.
• And so much more...

Resources:

"Roger Ferguson: The Fed has more work to do as inflation still presents danger" (article from CNBC)

"Key Fed inflation measure rose 0.6% in January, more than expected" (article from CNBC)

"Despite high inflation, Americans are spending like crazy — and it's kind of puzzling" (article from CNBC)

"Fed can’t tame inflation without ‘significantly’ more hikes that will cause a recession, paper says" (article from CNBC)

"Are we headed for a recession? More economists think a 2023 downturn may come later than they thought" (article from USA Today)

"Subprime auto lender folds as more Americans fall behind on car payments" (article from Fortune)

"Home prices will sink in these cities that were once red hot as supply starts to overwhelm demand" (article from Markets Insider)

"Opendoor loses $400 million as home sales tank" (The Real Deal via Instagram)

"Home remodeling is slowing down, but ‘historic boom' is coming" (article from Yahoo! Finance)

"The Rental Housing Market Hits An Historic High Point (And That’s Saying A Lot)" (article from Forbes)

"The investors who still think crypto can make them rich" (Wall Street Journal via Instagram)

"Binance's asset shuffling eerily similar to maneuvers by FTX" (Forbes via Instagram)

"Corporate Stock Buybacks Help Keep Market Afloat" (article from The Wall Street Journal)

Redfin Corp. has said that the total value of homes in the U.S. totaled $45.3 trillion at the end of 2022, which is down about $2.3 trillion, or 4.9%, from the June 2022 peak of $47.7 trillion. That marks the biggest decline for any June-to-December period since 2008, during the financial crisis. The housing market has been declining as rising mortgage rates have hurt demand. The hardest hit area was San Francisco, which saw the total value of homes in December fall by $37.3 billion, or 6.7%, from a year ago to $517.5 billion, while Miami saw the value of its homes surge by $77 billion, or 19.7%, in December to $468.5 billion.

In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect this will have on the housing market.

They discuss data from the Mortgage Bankers Association (MBA) showing that the average interest rate on the most popular U.S. home loan rose last week to its highest since November as bond markets took fright that the Federal Reserve might have to continue tightening policy through summer to subdue inflation.

Chris and Saied look at news that the number of large office landlords defaulting on their loans is on the rise, which appears to offer fresh evidence that more developers believe that remote and hybrid work habits have permanently impaired the office market.

They also offer some thoughts on ‍the decision to no longer offer travelers using American Express premium credit cards the ability to to bring two free guests to the American Express lounges. There is now a $50 fee for adults and a $30 fee for children ages 2 to 17.

Join Chris and Saied for this fascinating and informative conversation.

Enjoy!

What You’ll Learn in this Show:

• Why something in the Fed rate outlook is causing problems in the market.
• Why college campuses have incubators for extremism on all sides.
• Why people need to be aware of where the market is moving.
• Why existing home sales have slowed down, no matter what some will say.
• And so much more...

Resources:

"U.S. mortgage interest rates jump to highest level since November - MBA" (article from Reuters)

"US home values declined by $2.3 trillion in 2nd half of 2022, Redfin says" (article from MarketWatch)

"Existing home sales fall for the 12th consecutive month in January" (article from CNBC)

"Office Landlord Defaults Are Escalating as Lenders Brace for More Distress" (article from The Wall Street Journal)

"American Express Airport Lounges Cut Back on Free Plus Ones" (article from The Wall Street Journal)