Welcome to the Weekend Reccs. This newsletter delivers a lovingly-tailored collection of thought-provoking goodness for your Sunday. Inside you’ll find: (1) a weekly column on economics, politics, or something unexpected, (2) a curated list of links for your enjoyment, (3) a lagniappe (because everyone deserves lagniappe), and (4) a collection of interesting, relevant charts. Grab a coffee and enjoy your morning.
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The links marked with asterisks (*) are the recommended reads.
Hi friends,
Short issue this week in celebration of February’s abbreviated nature. Enjoy!
The Links
Housing shortage* [$] This was one of those articles that you read and realize that every 1-2 paragraphs had a really interesting point worth pausing and thinking about.
Mirror, mirror* The predecessor to Instagram filters were tiny handheld mirrors in the 1700s. Folks would arrive at beautiful vistas and then promptly turn their back to it.
Risky Business* This analysis finds that there’s a greater threat to the financial system from defaults on business debt than household debt. In short, (1) the business debt is not backed by the government as household debt often is (mortgage, student loans), and (2) business debt is much more illiquid. So there’s a greater probability of fire sales in business debt. This is related to a more general point, that supporting businesses was important at the onset of the COVID crisis not just because they are employers, but because their defaults could have rippling impacts on the broader financial system.
For the uninitiated: fire sales are when everyone is trying to get out of a product at the same time, so everyone has to sell at discounted prices. Since a lot of the financial system is tied together by statistical estimations of asset value, fire sales are very bad and should be avoided. Fire sales helped fuel the 2008 financial crisis not just due to the direct losses of selling at a discount but also because they triggered other sell-offs (and other fire sales) as market participants sought to cover their losses and obligations.
So Long, and Thanks for the Fish (on the Moon)* Tending to fish on a Moon colony may be in the near future. As the article notes, it can provide residents not just a source of tasty source of protein (branzino!) but also something to do. The latter is important because boredom is a huge problem for spacefarers.
While we’re at it with the space stuff, you can add your name* to a list being sent aboard a future Mars mission.
Something borrowed* Kid creates take-a-stick-leave-a-stick library for dogs.
There is a subreddit devoted solely to birds that look like they are twice divorced*
Lagniappe
Ok, statistically speaking this one is more for the men (particularly the American men) among the readers.
During lockdown I have developed a much more thorough nightly skincare routine than I had previously. It is important! At all ages! Your face is the most frequent part of your body exposed to sunlight and the elements and the skin on your face is some of the thinnest on your body. Treat your largest organ well!
So, if you’ve ever felt like it was too confusing, here is the evening routine I developed after doing some research. Use in this order:
a cleanser with glycolic acid
(once or twice a week) a clay face mask
a toner
a facial moisturizer
an eye cream
Then, in the morning, put on a facial moisturizer with SPF before going outside.
Happy to discuss specific products if anyone has questions, but I’m not trying to sell you anything so I’m not linking them here!
Graph(s) of the week
[WSJ] The market now thinks that inflation will rear its head and then disappear (negative spread == long term inflation < short term inflation)…but readers of the Reccs heard that months ago.
Keep the faith,
Harrison