The money market yield spike upends a ton of business models. In this case, landlording in the US
Inded, multifamily cap rate is now BELOW cash rate... Source: Jeff Weniger
US deficit is doubling as US Economy grows shows why yields are at 5%
Source: Bitcoin magazine
A Big drop in US flash PMI selling price gauge in October brings the FOMC 2% target into focus for the first time in three years
Source: Chris Williamson
CTAs are running equity shorts, global as well as US
Source: TME, GS
This chart illustrates another factor contributing to the increase in US bond yields:
Concerns about the govt's ability to manage its debt responsibly. The price of insuring against the possibility of the US government defaulting on its obligations (CDS Price) has recently jumped Source: HolgerZ, Bloomberg
The premium to buy a home vs. rent one has soared to 52%, the highest level ever recorded
Even in 2008, the premium to own peaked at 33%. Source: barchart
Shares of US firms that miss profit estimates are falling by the most in four years:
Bloomberg Intelligence
The Kobeissi Letter >>> In fiscal year 2023, the US ran a deficit of $1.7 trillion
If you add back the student loan forgiveness program adjustment, the deficit was actually $2 trillion. To put this in perspective, the annual US deficit is roughly equal to total individual income tax collected. It also means that the 2023 deficit is nearly 5 TIMES as large as corporate income taxes. The 2023 deficit as reported is ~25% larger than total Social Security outlays. Net interest was $659 billion and should soon pass the national defense budget. What's the long-term plan here?
