What we’re reading (2/13)
“Fed Rush To Catch Up On Inflation Raises U.S. Recession Risks” (Bloomberg). “Economists from both sides of the political spectrum see rising risks of a recession. Former Fed Governor Lawrence Lindsey, who served in the White House under Republican President George W. Bush, puts the odds of a downturn by the end of next year at above 50% -- triggered by a meltdown on Wall Street.”
“Inflation Is Everywhere, Including Places You Might Not Expect” (Wall Street Journal). “A Wall Street Journal analysis of 280 companies that had reported quarterly earnings as of Feb. 4 showed that 79% had some discussion of inflation in their conference calls. For some companies, the increased costs are contractual. Marlboro cigarette maker Altria Group Inc. expects that inflation will increase the amount it pays from a 1998 landmark tobacco settlement, it said last month. The settlement hit cigarette makers with legal liabilities that led to $200 billion in costs over the years.”
“Car Dealers Are Raising Prices. Automakers Are Pushing Back. Consumers Are Stuck In Between.” (Washington Post). “Ford and General Motors recently upbraided dealers for ignoring the manufacturer’s suggested retail price, or MSRP, a practice that was practically unheard of a year ago and GM calls “unethical.” They’ve threatened to withhold deliveries of their most popular offerings, including Ford’s buzz-generating F-150 Lightning pickup, and other forthcoming electric vehicle models.”
“Investors Appear Poised to Continue Private Credit Allocations, Data Shows” (Institutional Investor). “Virtual data room provider SS&C Intralinks polled 111 investors, 60 percent of whom had more than $1 billion in assets under management, about their views on the debt capital markets. The results showed that these investors are increasing allocations to the debt market generally — not just to private credit. The investors polled included family offices, pension funds, and insurers, among others.”
“The Risks And Rewards Of Investing In The Metaverse Real Estate Boom” (CNBC). “There’s a land rush happening — and it’s not in New York City or Beverly Hills. Early speculators, professional real estate agents, and celebrities are buying up land that doesn’t even exist in the real world. They are investing in metaverse real estate, a concept mind-boggling to most people.”
