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If you were only to read one thing…
WP – Too Many Men – Simon Denyer and Annie Gowen 4/18
- “Nothing like this has happened in human history. A combination of cultural preferences, government decree and modern medical technology in the world’s two largest countries has created a gender imbalance on a continental scale. Men outnumber women by 70 million in China and India.”
- “The consequences of having too many men, now coming of age, are far-reaching: Beyond an epidemic of loneliness, the imbalance distorts labor markets, drives up savings rates in China and drives down consumption, artificially inflates certain property values, and parallels increases in violent crime, trafficking or prostitution in a growing number of locations.”
- “Those consequences are not confined to China and India, but reach deep into their Asian neighbors and distort the economies of Europe and the Americas, as well. Barely recognized, the ramifications of too many men are only starting to come into sight.”
- “’In the future, there will be millions of men who can’t marry, and that could pose a very big risk to society,’ warns Li Shuzhuo, a leading demographer at Xi’an Jiaotong University.”
- “Out of China’s population of 1.4 billion, there are nearly 34 million more males than females — the equivalent of almost the entire population of California, or Poland, who will never find wives and only rarely have sex. China’s official one-child policy, in effect from 1979 to 2015, was a huge factor in creating this imbalance, as millions of couples were determined that their child should be a son.”
- “India, a country that has a deeply held preference for sons and male heirs, has an excess of 37 million males, according to its most recent census. The number of newborn female babies compared with males has continued to plummet, even as the country grows more developed and prosperous. The imbalance creates a surplus of bachelors and exacerbates human trafficking, both for brides and, possibly, prostitution. Officials attribute this to the advent of sex-selective technology in the last 30 years, which is now banned but still in widespread practice.”
- “In the two countries, 50 million excess males are under age 20.”
Perspective
WSJ – Daily Shot: howmuch.net – Home Insurance Cost in Every State 4/19
WSJ – Daily Shot: howmuch.net – Health Insurance Rates by State 4/19
Worthy Insights / Opinion Pieces / Advice
BuzzFeed News – This PSA About Fake News From Barack Obama Is Not What It Appears – David Mack 4/17
- “Oscar-winning filmmaker Jordan Peele has a warning for viewers about trusting material they encounter online.”
Visual Capitalist – America: An Economic Snapshot of Every U.S. State – Jeff Desjardins 4/19
Wolf Street – Subprime Carmageddon: Specialized Lenders Begin to Collapse – Wolf Richter 4/8
- “The subprime auto lending business is highly cyclical. For example, according to Bloomberg, citing Moody’s data, 41 subprime lenders filed for bankruptcy during the subprime auto loan bust between 1997 and 1999.”
- “But unlike subprime home mortgages, subprime auto loans won’t take down the financial system. About 25% of the auto loans written are subprime. For new cars, it’s about 20%. Of the $1.11 trillion in total auto loans outstanding at the end of 2017, about $280 billion were subprime – less than a quarter of the $1.3 trillion subprime mortgages before the financial crisis. Even if the total subprime portfolio produced a net loss of 50%, the losses would amount to only about $140 billion.”
- “And there are other differences: Vehicles are quickly repossessed, usually after three months of missed payments. Even in bad times, there is a liquid market for the collateral at auctions around the country, and vehicles can be shipped to auctions with the greatest demand. The results are that lenders don’t end up holding these vehicles and loans on their balance sheet for years, as mortgage lenders did with defaulted home mortgages and homes.”
- “But subprime will take down many more of the specialized lenders. And the survivors will tighten lending standards. This will prevent more car buyers from buying a new vehicles. Many of them will be switched to older used vehicles. Or they hang on to what they have.”
- “So automakers get to grapple with the loss of these customers. When you lose a significant portion of your customers due to credit problems, it hurts. And this is where it adds to ‘Carmageddon.’ Investors and creditors, including PE firms, get to grapple with losses and bankruptcies. But given the limited magnitude of subprime auto loans, and the limited impact on the banks, the Fed will brush it off and continue its monetary tightening, and no one will get bailed out.”
Markets / Economy
FT – Sentiment sours for big brand consumer staples – Chloe Cornish 4/18
Tech
Britain
- “As the U.S. goes after a handful of Russian oligarchs with its latest round of sanctions, the U.K. is under pressure domestically and from abroad to tighten controls and shed its reputation as a place to launder corrupt money. The U.K. National Crime Agency estimates that more than £90 billion ($127.5 billion) of such money enters the U.K. each year, feeding a vast industry of property companies, lawyers, bankers, and accountants. A lot of that comes from Russia, and ends up in high-end real estate. About a fifth of suspicious property purchases from 2008 to 2015, £729 million worth, were made by Russians, according to anticorruption watchdog Transparency International. ‘In terms of the levels of financial flows that go through London, it’s likely that it’s one of the biggest hubs of money laundering in the world,’ says Ben Cowdock, the group’s lead researcher on dirty money in the U.K.”