Lead Story… Considering that there is a fair amount of economic chaos in the world today (China, Greece, Puerto Rico, etc.), it stands to reason that the price of gold would be going up. However, that line of reasoning has been wrong for several years and the yellow metal has plunged to it’s lowest level since 2010, and is down nearly 50% from it’s peak. Gold bugs have dug in their heels with claims of manipulation, leading several pundits and fund managers to troll the shit out of them online.
Productivity Pickle: Silicon Valley economists believe that the US doesn’t have a productivity problem, just that we do a really crappy job measuring productivity.
Driving Force: Long US interest rates are largely being driven by turmoil abroad.
There is a Good Polish Joke in Here Somewhere: Once again, borrowers (this time in Poland) are learning a lesson the hard way: DON’T BORROW MONEY DENOMINATED IN A FOREIGN CURRENCY. EVER.
Finally? Cheap oil might be ready to make a positive impact on the economy at last. However, don’t tell that to anyone in California where gas prices have gone through the roof over the past few weeks.
Party Like its 2005: In certain cities, bidding wars are back only this time its happening because of low inventory rather than sketchy fog-a-mirror-to-qualify mortgages.
Starting to Move Higher: Builders expect starts to steadily increase over the next couple of years. However, it’s not all good news. Multi-family construction is leading the charge and apartment construction creates substantially fewer jobs than single family construction does.
Bad Idea Jeans: Earlier this year, the San Francisco Board of Supervisors fell just short of a super-majority in voting for a construction moratorium in the Mission. Now the proposal to limit construction will go to a referendum because people are fed up with insane housing costs. Clearly, the only way to bring prices down in San Francisco is to limit the supply of new units even further. End sarcasm here. The definition of insanity is doing the same thing over and over and expecting a different result. San Francisco (and most of coastal California for that matter) has limited development for years and appears to be puzzled but ever-rising prices.
A Sucker is Born Every Minute: The crazies are taking over. Farmers are now hiring “water witches” in an attempt to summon rains.
Karma is a B&$ch: Ashley Madison is a website that was created for horrible people to cheat on their spouses. It has a membership of over 37 million people, mostly in the US and Canada (just for reference, our entire population is about 310 million). A hacker group stole all of their user information and is threatening to make it public unless the website is shut down. Sit back, grab some popcorn and watch the craziness unfold.
Graphic of the Day
The Clowns of Wall Street: At least a broken clock gets it right twice a day. There is a veritable cottage industry that has sprung up since 2010 of newsletter writers trying to predict the next crash. Here is how they have fared. Highly recommended that you click on the link to get the full story behind these jokers.)
Source: Fund Reference
How to Be a Bad-Ass: Large great white shark attacks pro surfer during competition in South Africa. Surfer fights back and punches shark. Shark goes away and surfer gets out of water without so much as a scrape.
Florida Crime of the Week: How to win an argument Florida style.
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