What we’re reading (5/15)
“Global Growth Is Slowing, But Not Stopping—Yet” (The Economist). “[S]o far, what people say and what people do seem to be different things. Global restaurant bookings on OpenTable, a reservations website, are still above the pre-pandemic norm. In America hotel occupancy still shows sign of improvement. A high-frequency measure of Britons’ spending habits, constructed by the Office of National Statistics and the Bank of England, shows little sign that people are holding off on social activities, or on purchases that could be deferred.”
“Ex-Goldman CEO Blankfein Says Recession Possibility Is ‘Very High Risk Factor’” (CNBC). “‘There’s a path. It’s a narrow path,’ said Blankfein, who retired from Goldman Sachs several years ago and now holds the title of senior chairman. ‘But I think the Fed has very powerful tools. It’s hard to finely tune them, and it’s hard to see the effects of them quickly enough to alter it, but I think they’re responding well. It’s definitely a risk.’”
“Investors Stay Put, Because They Can’t Think Of Better Options” (Wall Street Journal). “Many traders say they are on the prowl for other investments, but even tried-and-true alternatives have lost their allure. A dash for cash—a usual strategy during turmoil—looks less appealing when inflation is hovering above 8%, chipping away at purchasing power. Investing in real estate can feel like a nonstarter when mortgage rates are rising and home prices have soared to records. The only option, some investors say? Sitting tight.
“Panic In The Crypto Marker Has Janet Yellen’s Attention” (CNN Business). “Investors in stocks, bonds and commodities are all on edge right now. But in the market for cryptocurrencies, unease has morphed into full-on panic, catching the attention of regulators in Washington tasked with maintaining financial stability.”
“Is There A Housing Shortage Or Not?” (Construction Physics). “We…can’t infer much from the fact that US homebuilding rates per capita are lower than they were in the past, because we would expect that to happen at some point soon regardless.”
