What we’re reading (5/28)
“Commercial Real Estate Is Stuck In A Slow Motion Train Wreck” (Business Insider). “[R]ight now there is a two-ton grey rhino staring down the US economy: More precisely, $6.5 trillion of assets in the US commercial real estate (CRE) industry. This coming CRE threat, in the three major non-residential sectors of the industry, is snorting loudly and padding its foreleg, while we all stand and stare.”
“A Key U.S. Inflation Gauge Rose 3.1% Year Over Year, Higher Than Expected” (CNBC). “A key inflation indicator rose a faster-than-expected 3.1% in April as price pressures built in the rapidly expanding U.S. economy, the Commerce Department reported Friday. The core personal consumption expenditures index was forecast to increase 2.9% after rising 1.9% in March. Federal Reserve officials consider the measure to be the best gauge for inflation, though they watch a number of metrics.”
“The Economy Is Spinning Its Wheels, And About to Take Off” (Paul Krugman, New York Times). “[C]hill out. There is some bad news out there, but most of it is a temporary byproduct of extraordinary good news: The virus is losing, and the economy is winning.”
“Americans’ Boost To Spending Is Adding Fuel To Economic Growth” (Wall Street Journal). “Americans extended a spending binge in April as they continue to catch up on activities they held off on during the pandemic, propelling a broad economic recovery. After months of buying goods, many households are now shelling out more for services, dining out, traveling, and even visiting the spa. Consumer spending rose by 0.5% in April the Commerce Department said Friday—a solid increase, though slower than the 4.7% gain the prior month, which was fueled in part by federal stimulus checks.”
“The Tech Startup That Taught A Computer To Taste Wine” (CNN Business). “A California startup that taught a computer to ‘taste’ wine is using the technology to help winemakers improve their products and attract new customers. Founder Katerina Axelsson says Tastry uses artificial intelligence (AI) to analyze ‘tens of thousands of wines a year,’ generating vast reams of data to help winemakers and retailers target their products more effectively.”
