Landmark Links April 30th – Risk On


Must Read: In a continuation of the trend of cash-hemorrhaging billion dollar companies going private – not to mention a great bit of news for short sellers, the We Companies (formerly WeWork) has filed confidentially for IPO.  Lyft shares rallied on the news as it offered proof that there is even more dumb money in the market.


Reverse Course: In positive economic news, the spread between the 3-month and 10-year treasury is no longer inverted and has continued to widen since late March.

Boom: Real GDP increased at a 3.2% annual rate in Q1, beating expectations.  Rumors of the economic expansion’s death appear to have been greatly exaggerated.

Long in the Tooth: An aging labor force may have lowered job mobility, firm creation, and economic growth according to the Minneapolis Fed.


Reduced Time Frame: Amazon Prime is going to go move to free one day shipping, upping the ante for other retailers and possibly creating even more demand for last-mile distribution assets.  See Also: Why Walmart could easily match Amazon’s one-day delivery.

Metamorphosis: Dark department stores in failing malls are increasingly getting bulldozed in order to make way for new multi-family projects.


Tidal Wave: Compass has a $1.2 billion dollar war chest and is using it for everything from wooing high-profile agents to buyer bridge loans to staging dollars and technology in an effort to disrupt the residential real estate sales business.

Waiting Game: Thanks to a lack of new home construction, young people are finding it difficult to buy until old people decide to sell.  That is acting as a tailwind for prices now but could lead to a substantial uptick in existing home inventory years down the road when baby boomers get into their 80s and 90s.

No End in Sight: Median rents in 70% of Bay Area neighborhoods were affordable to families making the equivalent of $100k today.  In 2018 only 28% of neighborhoods were affordable to those same families.  There are some really cool visuals in this story.  Not to sound like a broken record, but there is no way this is sustainable.


Fall of a Titan: How Kleiner Perkins went from the class of Silicon Valley’s VC investors to an also ran.

Boondoggle: California’s high speed rail authority has been overly reliant on a network of high-cost consultants who have consistently underestimated the difficulty of the task that they took on and have bled the budget dry, resulting in a project that is now 13 years behind schedule and $44 billion in the hole.  It’s not even that satisfying to say ‘told you so’ since an 8th grade civics student could have seen this coming from the beginning.

Under the Radar: High profile consumer tech companies get all of the headlines but shares of business-software firms are having much stronger initial public offerings of late.

Chart of the Day 

Household formation remains high, yet we still aren’t building much. Wonder where all of those people are going to go?

Source: The Daily Shot


Rule 34: ‘Avengers’ porn searches went up 2,912 percent in anticipation of the release of ‘Endgame’ mainly because people are perverted weirdos. (h/t Trevor Albrecht) .

Smoking Gun: A woman who called 9-1-1 to ask “how do I kill my boyfriend?” was immediately arrested because subtlety was not her strength.

Explosive If True: A restaurant in Texas was temporarily shut down after employees allegedly put Miralax on a pizza.

Landmark Links – A candid look at the economy, real estate, and other things sometimes related.

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Landmark Links April 30th – Risk On

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