Existing Home Sales - As the flight to sick-ass WFH setups and out of the boring-ass office continues, home sales continues to ramp up. Recently we got data for October's existing home sales, confirming the trend described above. Existing home sales rose 0.8% month-over-month, representing a contraction from the craziness of last year by 5.8%.
These figures imply annualized sales of over 6mm housing units, which would represent the highest number since...2006. Of course, that doesn't sound great, but the market is much more well capitalized and new regulations hope to halt a repeat of the GFC. We'll see, but for now, probably not too much to worry about (I hope).
Boiling Point - Elon Musk and Jamie Dimon - two of Wall Street's most watched executives. One sits at the helm of the United States' largest auto maker while the other has run the nation's largest bank company for the last 16 years. So yeah, we're talking some pretty important people, and these important people also just happen to really not like each other….at all.
The two have traded blows and thrown shade at each other in the past, mostly in a mild and seemingly-nonchalant manner. However, last week Jamie Dimon and JP Morgan filed a lawsuit against Elon and Tesla for $162mm that the EV behemoth owes the money behemoth.
JP Morgan alleges that despite their reluctance to work with Tesla pretty much always, in 2014, the bank orchestrated a trade known as call option overlay, which is essentially where a company uses convertible debt and call options to minimize their tax burden. JP Morgan lent a hand to Tesla 7 years ago to do one of these trades. The bank has not yet been paid for their services and I guess Tesla hitting the $1tn mark reminded them or made Jamie Dimon think "okay f*ck this guy, he still owes me money."
Either way, when two billionaires are at each other's throats, it makes great entertainment for us