Lead Story…. The world’s largest corporations have been booking record profits over the past couple of years. So why are they holding trillions of dollars of cash on their balance sheets while earning little-to-no return rather than investing or making acquisitions?
Blame Canada: Looking for a scapegoat for the oil glut? Look no further than our neighbors to the north. See Also: Iran is preparing to start producing 1 million barrels a day now that sanctions are being lifted. In other words, the glut isn’t going away anytime soon.
Recession Watch 2016: Bloomberg reviews the bull and bear case and concludes that a recession is unlikely in 2016. Contra: Rail traffic is telling a rather negative story about where the economy is headed.
Video of the Day: Perma bear Noriel Roubini in a rare non-pessimistic appearance on why the current market roller coaster ISN’T 2008 all over again.
Conscious Uncoupling: Housing economists have a new reason to be bullish on housing starts – demographic changes and the decline of marriage. Yes, you read that correctly, divorce = the savior of the housing industry.
Love Affair: Foreign investment in US residential real estate often drives prices up and makes neighborhoods un-affordable for existing residents. So why do politicians love it? Larry Roberts explains.
Game Changer? Is selling some of the equity in your home a good way for homeowners to diversify their investments? Alan Weis, who helped create the Case-Shiller index thinks so and is creating a platform that will allow homeowners to do just that.
End of an Era: Hef put the Playboy Mansion up for sale for $200mm. He also stipulated that one of the conditions of sale is that he gets to stay there with his harem until he croaks. LA residential experts seem to think it isn’t worth more than $90mm. The struggle is real.
Begging For Forgiveness: Thousands of borrowers who took out loans to attend shady for-profit colleges are petitioning the federal government to get their student debt forgiven.
Disliked: A new study found that most of your Facebook friends really don’t give a sh%t about you.
Never Gonna Happen: Automakers are trying to make minivans cool. Best of luck with that one guys.
Chart of the Day
Residential Investment as a % of GDP still has a ways to run.
Video of the Day (Part 2): Getting towed on a snowboard by a Jeep through the snow-covered streets of NYC looks like fun.
By Hook or By Crook: The FBI is pulling out all of the stops to get rid of Super Bowl hookers. This is somewhat unfortunate because the Super Bowl and hookers go together like America and apple pie.
Landmark Links – A candid look at the economy, real estate, and other things sometimes related.
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