Lead Story… The Fed is about to raise rates but has very little room to maneuver without causing the yield curve to invert which would likely cause a recession.
Inversion: As the Fed prepares to raise rates, watch out for the best predictor of a US recession – the dreaded inverted yield curve, which Citigroup thinks could happen relatively quickly. Contra: Calculated Risk’s Bill McBride says we shouldn’t even be on recession watch at the moment.
Giant Game of Chicken: Oil is still in free fall but big producers still haven’t blinked and are continuing to pump.
Dropping Like a Rock, Eh: The decline of the Canadian dollar over the past year has led to a decrease in Canadian buyers of US real estate. For the first time, buyers from China have overtaken Canadians as the biggest foreign purchasers of US Property. However, our neighbors to the north are still quite active in the luxury segment of the housing market.
Unmet Demand: The lack of new housing supply combined with recovering household formation is putting upward pressure on both rents and home prices. See Also: Baby Boomers are less likely to downsize than previous generations were and that’s not helping the housing supply situation.
Build Baby Build: The State of California has now officially acknowleged that coastal communities need to build a whole lot more housing units to have any shot at increasing affordability. See Also: Check out this great infographic on why California housing prices are out of control.
Factory of Sadness: There is a scientific reason that Cleveland fans can’t stop watching their teams lose. See Also: Someone put together a sad but hilarious video of recent Cleveland Browns failures with Adele playing in the background.
Time Machine: Reading this article from The Economist from 1990 about the coming collapse in Japanese property values is sort of eerie.
Concrete Jungle: Here’s the story of how LA essentially became one massive parking lot.
Chart of the Day
Video of the Day: Watch a humpback whale nearly swallow a paddle boarder off Santa Cruz.
Thanks Miley: Glitter Pits are apparently a thing and are just as gross as you’d imagine.
Stinky Situation: No one can figure out why an entire downtown in Pennsylvania smells like cat pee.
Party Time: A new study shows that IT workers are the most likely to have sex at the office holiday party.
Bushy Tailed Tree Rat: A psychotic squirrel is attacking people in Novato and sent one man to the hospital.
Landmark Links – A candid look at the economy, real estate, and other things sometimes related.
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