Markets:
- Fed Funds rate lowered from 5.0% to 4.5%, but mortgage went from 6% to 7%.
- Why. Mortgage rates are tied closer 10 year bonds. And with market uncertainty, people buy bonds:
- Example: $100 bond pays 5%.
- Demand drives bond to $98; so implied rate is 7%.
- S&P 500: ~33% is Mag 7
- RSP Equal weight.
- Some correction is healthy.
California Fires
- Firefighters continue attempts to gain control of almost 40,000 acres of ongoing wildfires, which have killed at least 27 people and destroyed more than 12,300 structures. See maps of the fire areas and evacuation zones.
- The Palisades Fire is 31% contained, and the Eaton Fire is 65% contained.
- CA FAIR is insurer of last resort. But they only have $200m in cash and $2.5b in reserves.
- A rule change in CA, requires those providing insurance to cover short-fall, which they will do by subsequently raising insurance for ALL CA residents.
- Already hard to get insurance. State Farm, Allstate = NO.
Govt Regulation and Cost
Other Regulation
Meta
Rocket Ships:
- Starships 7th flight test. The landing burn slowed Super Heavy down and maneuvered itself to the launch and catch tower arms, resulting in the second successful catch of a Super Heavy booster.
- Blue Origin: New Glenn made it, but didn’t successfully land the booster.
