Finance in Olympics: In recent years, there have been fewer and fewer cities bidding to host the Olympics. What was once seen as a great honor is now looked at as a financial burden. “Economists have long argued that, rather than consumption, tourism and prestige, the games leave high debt, wasteful infrastructure and onerous maintenance obligations.” The Economist dives into the $2.8 billion budget for the Tokyo Olympics.
Lack of Starter Homes: As the housing crisis continues, there is one common theme that has been occurring: the lack of starter homes. Not only are young buyers facing an overly competitive market, but they are also facing a lack of smaller, more affordable housing options. “In the late 1970s, an average of 418,000 new units of entry-level housing were built each year, according to data from Freddie Mac. By the 2010s, that number had fallen to 55,000 new units a year. For 2020, an estimated 65,000 new entry-level homes were completed.” The Wall Street Journal goes into where this leads us in the future, if this trend continues.
Moratoriums Lifting: As life begins to resume to pre-COVID times, many wonder how the lifting of moratoriums will affect the housing market. “One in four renters and one in ten mortgage-holders have little to no confidence in their ability to pay for housing in the next month.” The Economist takes a look at Miami, a city with no strict eviction moratoriums, to determine the state of the entire US housing market to come.
Debt Ceiling Deadline: Back in 2019, Congress voted to suspend the debt ceiling until July 31 of this year. With that date quickly approaching, many wonder if Congress will be able to come to a new agreement in time. “If lawmakers can’t reach another agreement before the end of the month, the borrowing limit would automatically be reinstated at that level, and the Treasury wouldn’t be able to raise additional cash from the sale of government securities.” The Wall Street Journal dives into the different scenarios of how the US economy will be affected by their decision or lack thereof.