Is the housing boom now a housing bubble?


For sale house.

For sale house. SAULLOEB / AFP via Getty Images

These are the top three financial insights of the week gathered from across the web.

Skip the AmEx Platinum Card

Do I really need to spend nearly $ 700 a year on an American Express Platinum card?Alexis Leondis asked at Bloomberg.. AmEx’s decision to raise prices from $ 550 to $ 695 should be suspended if “we are still vigilant for frequent and large trips with COVID-19.” The advantage of AmEx Platinum over its competitors is always access to premium lounges at the airport. “But the lounges are congested and start to require extra charges to bring in guests and families.” Other than that, “The existing benefits of platinum are high, despite the high prices.” It’s almost the same as any other similar card. ”The AmEx Gold Card offers“ much better reward points for general spending ”and has an annual membership fee of $ 250.

Is this a housing bubble now?

Some Federal Reserve Boards are concerned that the housing boom is starting to look like a bubble, Janna Smiarek said. New York Times.. Federal Reserve Bank of Dallas Governor Robert Kaplan said last week that he was “nervous” about the housing market situation. “Some of Kaplan’s colleagues have similar concerns.” Home prices are rising at a double-digit pace this year. For some, bulk mortgage purchases by central banks may “help to inflate” the market by keeping mortgages cheap and “encouraging people to borrow more and buy bigger.” I feel that. It leads to bidding wars and frustration among buyers who want more space. But curbing Fed spending, especially for housing, can “slow down the economy as a whole” and lead to unemployment.

More big companies invest in startups

Heather Somerville said giant money management companies are at a pace to double last year’s record in startup funding. The Wall Street Journal.. In total, $ 150 billion was invested in startups in the first half of 2021. This is more than the full year before 2020. Most of that cash isn’t from traditional venture capital firms. Three-quarters are invested by “hedge funds, mutual funds, pensions, sovereign wealth funds, and other non-traditional venture investors” who have been left with a “large capital pool” thanks to the IPO boom. I am. Some older venture capital firms are feeling the pressure to act swiftly, “reducing audits and customer checks, incorporating startup words about profits and losses.”

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