economics

Compass vs. Redfin. Falling compensation. Tom Levine discusses disruption in the business of real estate.
real estate / economics

Is Compass just Redfin on Steroids?

Amidst industry shakeups and lawsuits, real estate is facing dramatic shifts due to AI and market forces. The once-standard 5%-6% commissions are predicted to fall to 3% or less. Companies like Compass, driven by venture capital, are likened to “Redfin on steroids,” initially thriving through aggressive strategies but potentially facing long-term challenges. As technology and transparency rise, standard transaction fees are set to plummet.

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February 6, 2024
A graphic of the yeild curve and the inverted yield curve.
economics

An Inverted Yield Curve – Why It Matters in 2024

Under normal circumstances, longer-term bonds have higher yields than shorter-term bonds because investors demand higher compensation for the added risk of holding their money for a longer period. This results in an upward-sloping yield curve. However, when short-term interest rates are higher than long-term rates, the yield curve inverts, meaning that short-term bonds yield more than long-term bonds.

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April 6, 2022
Modern Monetary Theory. A close up of stacks of $100 bills exemplifying the explosion of the volumn of currency in circulation.
economics

Modern Monetary Theory: Is This The End?

Modern Monetary Theory is controversial. We explore the implications and utilize a clip of Dr. El-Erian discussing the yield curve. The inversion continues.

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February 21, 2022