What we’re reading (3/6)
“Billionaire Marc Andreessen Warns We’re Headed To A World Where A College Degree Costs $1 Million And A Flatscreen TV Costs $100” (Insider). “The Silicon Valley investor said that sectors provided or controlled by the government have become "technologically stagnant." Innovation in certain highly regulated sectors, like education and healthcare, "is virtually forbidden," causing high prices, he wrote. Andreessen said that over time the price of highly regulated products will continue to climb, while less-regulated products, like flatscreen TVs, will become cheaper.”
“The Dirty Little Secret Of Credit Card Rewards Programs” (New York Times). “In 2016, Chase launched its Sapphire Reserve card. The card comes with perks, bonuses and points multipliers that for big-spending travelers and diners are worth far more than its steep $550 annual fee. There was so much initial demand that Chase ran out of the metal slabs it prints the cards on. Sapphire’s enormous success set off a credit card perks war, with numerous banks flooding the market with sign-on bonuses worth thousands of dollars.”
“Why the Recession Is Always Six Months Away” (Wall Street Journal). “The government’s stimulus measures left household and business finances in unusually strong shape. Shortages of materials and workers mean companies are still struggling to satisfy demand for rate-sensitive goods, such as homes and autos. And Americans are splurging on labor-intensive activities they avoided in recent years, including dining out, travel and live entertainment.”
“Blackstone Defaults On Nordic CMBS As Property Values Wobble” (Bloomberg). “Blackrock Inc. defaulted on a €531 million ($562 million) bond backed by a portfolio of Finnish offices and stores as rising interest rates hit European property values.”
“Arm Opts For New York Stock Listing In Blow To London” (BBC). “The Cambridge-based firm designs the tech behind processors - commonly known as chips - that power devices from smartphones to game consoles. Reports in January said Prime Minister Rishi Sunak had restarted talks with Arm's owner, Japanese investment giant SoftBank, about a possible UK listing. Arm says it decided a sole US listing in 2023 was ‘the best path forward’.”
