Lead Story… Home builders are suffering from a major labor shortage leading to delays and costs busts. They’ve countered by raising wages but it really hasn’t made a dent in the growing gap between openings and hires. The fact is that during the last recession, many unemployed construction workers left the business for good and haven’t looked back. One place where many ended up is the trucking industry where wages are up 17% in two years with the freight business booming.
Second Thoughts: The chances of the Federal Reserve hiking rates this year is increasingly lower as signs of anemic economic activity mount.
What Do You Do All Day? Nearly 40% of working age Americans aren’t in the labor force. Here’s why that number is now so high.
Starting Small: Workers at small companies are finally starting to see wage gains. It may seem small start but at least things are moving in the right direction.
That’s a Lot of Zeros: Since 2008, the US Treasury has sold 3-Month Treasury bills 46 times with a yield of zero, for a total of $1.17 trillion of bills that pay no interest, due largely to a persistent supply/demand imbalance.
Medical Spec: Developers are starting to build medical office buildings in “A” locations, even if there aren’t any tenants in tow.
Hoarders: It’s really good to be a self storage owner right now because people apparently hate to part with their stuff.
Going Green: The Irvine Company is switching 12 office buildings over to Tesla battery power to get more green.
Blog Roll: This is a really good list of commercial real estate blogs that are worth your time to read.
Sharpening Focus: Some Chinese buyers are shifting their sights from London, long a primary real estate target for the wealthy global elite, to the US.
Party On, Neighbor: House share sites like VRBO and AirBnB have opened homeowners to a new nuisance: party houses.
Fire Sale: You can now own the 15 bedroom on 27 acre Guitar House in Shoal Creek Alabama for a starting bid of $1MM.
Financing Map: Here’s a map of how home buyers finance their purchase in different parts of the US.
Don’t Be the Patsy: Warren Buffett once said: “As they say in poker, If you’ve been in the game 30 minutes and don’t know who the patsy is, you’re the patsy.” According to Barry Ritholtz, 99% of the participants in daily fantasy football are the patsy. See Also: Nevada regulators have ruled that daily leagues are indeed gambling.
Anarchy: Here’s an incredible interactive map of all of the areas of the world where national governments no longer have control.
In a Class of It’s Own: Financial Advisers are now pitching direct lending as an asset class.
40-Buck Chuck: Rates are higher and loan requirements are tighter for aspiring private-label vintners.
Notable and Quotable: Steve Spurrier’s retirement has been largely overshadowed by the unfortunate Steve Sarkisian leave of absence/firing/rehab story, which is a shame because the Ol’ Ball Coach had Muhammad Ali caliber trash talking game.
Chart of the Day
Los Doyers: At this point I would sooner wear an American flag jogging suit and run across an ISIS controlled territory than wear an opposing team hat to Dodger Stadium. This past week and mother and son duo beat the crap out of a Mets fan. No, that wasn’t a typo. It was a guy and his MOM.
Keeps Getting Worse: You might remember when a Subway “Sandwich Artist” did this, or when a nutritionist discovered that they were putting a chemical used to make yoga mats in their bread or, of course the time that their spokes person got arrested for being a pedophile. Everyone’s favorite disgusting sandwich chain now has a new problem: a whole mouse in a sandwich from a store in Oregon.
Covering Up: All of the guys who say that they get Playboy to read the articles are no longer lying.
FAIL: Incredibly stupid 23-year old Florida woman live-streams herself drunk driving. Gets arrested.
Video of the Week Part 1: Watch a giant great white shark jump all of the way out of the water to nab a seal just feet away from the Alcatraz ferry pier on San Francisco Bay as tourists watch.
Video of the Week Part 2: In a slightly less majestic nature film, watch a rat and a pigeon battle to the death on a New York sidewalk while pedestrians cheer them on in possibly the most New York video ever filmed.
Landmark Links – A candid look at the economy, real estate, and other things sometimes related.
Visit us at Landmarkcapitaladvisors.com