Econ70

Fannie Freddie

06/21/2017

Nine years after the government takeovers, there’s again talk of reforming Fannie and Freddie; good luck! Builders, Realtors, bankers, and investors want a strong government guarantee to backstop the $10 trillion mortgage market and keep the popular 30-year fixed rate…

Court Count

06/20/2017

There are 870 federal court judgeships with lifetime appointments. 122 are vacant, giving Trump the chance to appoint 13% of the judiciary, the second highest percentage an incoming first-term president has enjoyed dating back to at least 1969, a much…

Hapless Housing

06/19/2017

Surprisingly, Y-o-Y housing starts fell 5.5% in May. YTD, single-family starts are up 7.4% but multi-family starts are down 2.8%. Continuing that theme, total starts are progressively weakening due to MF activity plunging from a +20% Y-o-Y increase in January…

Fantastic Fathers

06/16/2017

The Friday File: Father’s Day spending is expected to reach a record $15.5 billion this year, up from $14.3 billion in 2016. $3.3 billion will be spent on experiential activities, followed by $2.2 billion on gift cards and an equal…

One Occupancy

06/15/2017

In 1940, the percentage of one-person households in the USA was 7.7%, by 1960 it was 13.3%, and by 1980, 22.7%. In 2000, the rate was 25.8% and in 2016, 28.1%! DC has the highest percentage of one-person households at…

Interesting Inflation

06/14/2017

While the Fed increased short-term rates by one-quarter-of-one percent, as expected, it’s their intention to raise rates again this year by the same amount that was mildly surprising. With inflation slowing across the globe and core CPI down steadily since…

House Holdings

06/13/2017

Household net worth climbed by $2.3 trillion in 17Q1 and it is now a record $94.8 trillion and a record 5 times GDP, well higher than during the housing or dotcom booms. Stock market wealth rose by $1.3 trillion and…

Fearsome Fed

06/12/2017

From 1914-2006 there were 19 interest rate rising cycles. We’re now in the 20th. In 16 of the 19, a recession followed, meaning 84% of the time a recession followed a sustained rise in short-term rates. However, since WWII there…

Drug Data

06/09/2017

The Friday File: Through age 30, the percentage of Millennials that consume alcohol (80%), marijuana (20%) and cocaine (3%) is virtually identical as it was for Gen-Xers of the same age. For all three substances, it is Boomers that were…

Costly Congress

06/08/2017

Before the final vote is cast, the upcoming 6/20/17 special election in Georgia’s 6th Congressional District will be, by far, the most expensive US Representative race in history, with total spending as of 5/25/17 of $37 million. The previous high…

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