Implode-Explode Heavy Industries news feed Tracking the many faces of the global credit implosion. en-us iehi-feed-65974 Sun, 11 Feb 2024 22:04:39 GMT White people's net worth outgrew Black Americans' by 30 percentage points in the pandemic, New York Fed study finds While government support such as increased unemployment benefits and stimulus checks helped stave off a COVID-induced recession, financial asset prices rose so significantly with the reopening of the economy through 2021 that racial wealth disparities increased. And while those market-linked assets did fall in 2022 when the Federal Reserve rapidly increased interest rates, "those declines did not fully offset the earlier rises," according to the New York Fed.


More than 50% of Black financial wealth is invested in pensions, the New York Fed found. Less than 20% of Black wealth is stored in private businesses, corporate equities, and mutual funds. In contrast, less than 30% of white financial wealth is invested in pensions, with about 50% invested in businesses, equities, and mutual funds.

"Black workers are still more likely to be unionized, which may play a part in the pension story," said Jones. "But how folks are exposed to the ability to invest in the stock market -- whether or not it's something they grow up doing -- we know that's different for white families than for people of color." Black family members are less likely to get an inheritance, she said.

During the pandemic, the real value of Black-held financial assets dropped in 2022 to below its 2019 level and continued to decline steadily, while the real value of Hispanic-held financial assets dipped below its 2019 level in 2022 and stagnated. Neither group's real financial assets have recovered to their 2019 values.

Owning a business is another component of financial wealth, and separate data show Black-owned businesses had a tougher time during the pandemic.

While less than 10% of all U.S. business owners are Black, Black-owned businesses were also more concentrated in industries hardest hit when COVID first spread, according to Economic Policy Institute analysis of government data. In April of 2020, more than 40% of Black business owners reported they were not working, compared with only 17% of white business owners.

iehi-feed-65973 Sun, 11 Feb 2024 18:15:12 GMT China's property crisis is starting to ripple across the world iehi-feed-65972 Fri, 09 Feb 2024 05:06:31 GMT New York City's Housing Crunch Is the Worst It Has Been in Over 50 Years iehi-feed-65969 Sun, 04 Feb 2024 17:07:31 GMT New data reveals the small-business boom from the pandemic has real-world legs iehi-feed-65968 Sun, 04 Feb 2024 17:05:13 GMT An affordability crisis is making some young Americans give up on ever owning a home Americans are living through the toughest housing market in a generation and, for some young people, the quintessential dream of owning a home is slipping away...

The sustainable solution is to make it easier to build housing. That way we can actually start heading in the right direction with affordability and have that be sustainable and not just a short-term interest rate phenomenon," Daryl Fairweather, Redfin's chief economist, told CNN

iehi-feed-65967 Sun, 04 Feb 2024 04:18:53 GMT "We Can't Afford Anything Else": Woman Explains Why Young People Are Buying Lavish Items iehi-feed-65965 Thu, 01 Feb 2024 14:17:15 GMT Why the US economy is doing so much better than the rest of the world ''Gross domestic product, the broadest measure of economic output, did slow last quarter to a 3.3% annualized rate. But make no mistake, as Larry David would say, that's prettaaay, prettaaay good.

It's remarkable given economists were expecting 1.5% annualized GDP growth last quarter. It's even more remarkable considering a year ago they were all but certain there'd be a recession by now and the economy would grow at a meager 0.2% rate

Wild idea -- what if the main cause is that the US has best normalized interest rates to a functional level? I.e. malinvestment at the top is curtailed, and people can accrue savings again. Just a thought.

iehi-feed-65959 Tue, 23 Jan 2024 19:10:14 GMT Meet the housing market ‘hackers' who do not live in their homes iehi-feed-65957 Mon, 22 Jan 2024 14:08:59 GMT Renting a Downmarket Million-Dollar Home I Can't Buy iehi-feed-65956 Sun, 21 Jan 2024 20:39:58 GMT Half of recent US inflation due to high corporate profits, report finds

The report, compiled by the progressive Groundwork Collaborative thinktank, found corporate profits accounted for about 53% of inflation during last year's second and third quarters. Profits drove just 11% of price growth in the 40 years prior to the pandemic, according to the report.

Costs have come down substantially, and while corporations were quick to pass on their increased costs to consumers, they are surprisingly less quick to pass on their savings to consumers," Liz Pancotti, a Groundwork strategic adviser and paper co-author, said.

iehi-feed-65949 Thu, 11 Jan 2024 01:54:40 GMT Forty-four of 50 US states worsen inequality with ‘upside-down' taxes Only six states, plus the District of Columbia, have tax systems that reduce inequality rather than worsen it, with the poorest fifth of people paying a tax rate 60% higher, on average, than the top 1% of households.

The super-wealthy are treated particularly lightly by the tax system, with the top 1% paying less than every other income group across 42 states. In most states, 36 in all, the poorest residents are taxed at a higher rate than any other group.

The most regressive states in terms of taxation are, in order, Florida, Washington, Tennessee, Pennsylvania and Nevada. The least regressive jurisdictions are DC, Minnesota, Vermont, New York and New Jersey.

Various state-level policies, such as cutting taxes on the wealthy to supposedly drive economic activity, has worsened this situation, the report found.

iehi-feed-65948 Mon, 08 Jan 2024 07:48:11 GMT New Revisionist Studies Attempting To Prove US Less Economically Unequal Don't Change The Underlying Reality iehi-feed-65939 Fri, 29 Dec 2023 00:51:46 GMT The Building Spree That Reshaped Manhattan's Skyline? It's Over. Manhattan is entering its most significant office construction drought since after the savings and loan crisis in the late 1980s and early '90s. Developers now concede that the next wave of large office towers may not open until the early 2030s, if not later.


At the end of November, the average asking rent for Manhattan office spaces was $75 per square foot. With the higher interest rates and increased construction costs, developers would need to charge $200 to $300 per square foot for a future office high-rise to make financial sense, they said.

iehi-feed-65936 Thu, 28 Dec 2023 03:22:41 GMT National Association of Realtors Headed For "Extinction-Level Event" iehi-feed-65928 Thu, 21 Dec 2023 09:38:12 GMT Rich Charlatan, Poor Readers iehi-feed-65924 Sun, 10 Dec 2023 18:33:23 GMT The Old New Way to Provide Cheap Housing iehi-feed-65923 Sun, 10 Dec 2023 18:28:00 GMT Famed Fed watcher expects interest rates stay high for ‘much, much, much longer' after unsustainable ‘free money era' Grant stands out from the Wall Street pack in another respect: Where many investment gurus are calling for the Fed to start cutting rates at some point in the coming year or two, Grant predicts an era of higher rates that could last a generation.

Fed Chair Jerome Powell has repeatedly warned that rates will need to remain "higher for longer" to truly tame inflation. But many Wall Street leaders, encouraged at inflation's steep fall from its June 2022 four-decade high, believe peak rates are already here.

Grant, however, takes a historical reading of monetary policy, and argues we're in for a generation of rising rates, with some volatility in between. "The phrase would be higher for much, much, much, much longer--but we have to underscore and italicize the conditional--if past is prologue," he told Fortune.


"We seem to have hit some major point of demarcation with interest rates in 2020 and ‘21," he added. Based on history, he said, this new regime should last 40 years. Still, Grant clarified that the generation-long uptick likely won't be a straight line up. If a recession hits, there could be a "substantial," although temporary, pullback in interest rates.

iehi-feed-65922 Sun, 10 Dec 2023 18:25:15 GMT "Georgist" Idea of Disused Land Tax Gains Steam iehi-feed-65916 Sun, 03 Dec 2023 18:42:40 GMT 'This could be the final straw': Realtors face a legal reckoning iehi-feed-65914 Sat, 02 Dec 2023 16:09:57 GMT Podcast: The Revenge of the Zero-Rate World Is Coming - Bloomberg