This week in charts
The worst half year for U.S. 10-Year Treasuries since 1788
The $100 Trillion Global Economy in One Chart
"One of my favorite things about the markets is how confident most investors are (and without this confidence it’s likely the markets wouldn’t function as well as they do). There is near universal agreement that many investors will freak out during the next downturn in stocks yet no one assumes they will be part of this group that panics.
“Surely, everyone else will become hysterical when stocks get crushed but I’ll stay level-headed and make all the right moves.
"The problem is there have to be losers in the markets for there to be winners. Someone has to capitulate and sell at the bottom of the bear market for someone else to take advantage and buy when there’s blood in the streets.
"Everyone wants to be greedy when others are fearful but many investors are simply fearful when others are fearful."
Chinese homebuyers across 22 cities refuse to pay mortgages
Across China, homebuyers are refusing to pay mortgages as property developers drag on construction projects, escalating the country’s real estate crisis and risks of bad debt for banks.
Buyers of 35 projects across 22 cities have decided to stop paying mortgages as of July 12 due to project delays and a drop in real estate prices, Citigroup Inc. analysts led by Griffin Chan wrote in a research report distributed on Wednesday.
The payment refusals underscore how the storm engulfing China’s property sector is now affecting the country’s middle class, posing a threat to social stability. Chinese banks already grappling with challenges from liquidity stress among developers now also have to brace for homebuyer defaults.
Now is “a critical time for social stability,” said Chan, adding that “the forgoing of down payments may bring social instability.”
Decouple podcast – Germany: The Canary in the Coal Mine (1 hr 10 min)
German energy expert Noah Rettberg discusses his country’s energy crisis and how it’s affecting several industries. He looks into some lessons other countries could need as they figure out their own energy transition.
This week’s fun finds
Plain English with Derek Thompson podcast (44 min)
Former writer for the Atlantic Derek Thompson goes on a deep dive into current events with an expert, providing relevant details without getting lost in them. Recent episodes include discussions on inflation, Amber Heard and (in the above link) why air travel is frustrating right now.
Pringles wants to rename a spider because it looks like the company mascot
Some photos from the James Webb Space Telescope, the largest optical telescope in space.
Bonus: Some science about the telescope, too.
