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- Share of income to own median home in US is 43%
Share of income to own median home in US is 43%
Four years ago it was 27.5%
Techonomy Barista
August 14, 2024
Welcome to another edition of the Techonomy Barista, where we bake snippets of fresh news to make you smarter.
The city of Paris in the future.
Today’s top news:
State of the economy
An explanation of this week’s economic meetings
Final Olympics medal tally
US housing market affordability
Polymarket odds at 14% chance of a US recession in 2024
First impressions of the SearchGPT prototype
1. State of the economy
US stocks had a quiet Monday (12 August 24) as markets around the world stabilized following a week of wild swings. Wall Street holds steady ahead of big updates later in the week. 💵
This current week will feature reports on inflation and how much U.S. shoppers are spending at retailers. The best-case scenario for Wall Street would be data showing a continued slowdown in inflation, combined with strengthening U.S. retail sales.
Markets - Top 5 Economies
Economic Calendar
2. An explanation of why this week’s US economic calendar is important 🧭
14 August: The Inflation Rate and Core Inflation Rate meetings are set for later this week. They’re both measures used to track changes in the price of goods and services over time, but they focus on different aspects of the economy:
The inflation rate is like the all-you-can-eat buffet of price changes—it covers everything on the menu, from groceries to gas. But because food and energy prices are as unpredictable as a TikTok trend, the overall inflation rate can get a bit wild. 🛒 🥐
On the other hand, the core inflation rate is like your no-nonsense friend who skips the drama. It says, “Nah, I’m not dealing with food and energy prices,” and focuses on the steadier stuff. By cutting out those volatile items, core inflation gives you a smoother, more reliable picture of what’s really going on with prices in the economy.
So, when the Fed’s figuring out if they need to mess with interest rates, they’re probably paying more attention to core inflation—the one that doesn’t get swayed by every gust of wind. But for you, the overall inflation rate is what’s going to hit your wallet when you’re at the grocery store or filling up the tank. ⛽️
15 August: Monthly Retail Sales meeting
Retail sales are like the pulse of the economy. When people are out there swiping their cards and filling up shopping carts, it’s a sign they’re feeling confident about their wallets and the future. High retail sales usually mean businesses are making money, which can lead to more hiring, more spending, and a nice little cycle of economic growth. But if retail sales start to dip, it could be a red flag that people are tightening their belts, which can slow down the economy. 🛍️
16 August: Building Permits meeting
Building permits, on the other hand, are like the economy’s crystal ball. They give you a sneak peek at what’s coming down the pipeline in terms of construction, which is a big driver of economic activity. When more building permits are issued, it means developers are planning to put up new homes, offices, and shopping centers—projects that create jobs, boost demand for materials, and generally keep the economy humming. Fewer permits? That might mean less construction, fewer jobs, and a slowdown in economic growth. 🏗️ 🏢
3. The US and China tied on gold medals for the first time in Summer Olympics history
Sorted by number of gold medals.
Source: Paris Olympics 2024 website.
Back in the Tokyo 2020 Olympics (held in 2021), the U.S. squeaked out a win with 39 golds, just one more than China’s 38.
Fast forward to Paris 2024, and it all came down to a heart-pounding final game of U.S. women’s basketball to lock in a tie with 40 golds each. 🏀
Even with that, the U.S. still flexed its muscles in the overall medal count, snagging 126 medals—35 more than China.
Those 40 golds out of 329 events mean the U.S. took the top spot 12.1% of the time. That’s a little better than Tokyo’s 11.4%, but still down from Rio’s 15% and London’s 15.8%.
If you’re looking for an MVP, check out the U.S. swimmers. They racked up the most medals and golds, showing just how deep America’s talent pool runs. 🏊️
Credit: CNBC
Significant pay rises are outweighed by high interest rates and list prices
High prices could make people feel they’re getting into the housing market at the wrong time, thus preventing them from buying a home.
Owners of homes feel their properties have risen in value. 🤑
5. Polymarket’s got the odds at 14% for a 2024 recession—basically, a coin flip with a bit more optimism 😅
Source: Polymarket
Polymarket, the world's largest prediction market, has emerged as a developing tool for forecasting economic risks.
The 14% is derived from users aggregating market sentiment and various economic forecasts (essentially their emotions and feelings of the future). For investors, it’s like a weather forecast for your wallet—might be time to grab an umbrella, just in case ☔️ .
Economists are on alert, checking all the usual suspects: GDP growth, unemployment rates, and how confident people are feeling about their finances. Meanwhile, consumer confidence is doing the cha-cha, thanks to inflation and interest rate jitters 🥴 .
August started with fear and anxiety of the economic future prompting an emergency rate cut before September. However, many experts are saying “Chill, we’re not in panic mode just yet.” According to them, the economy’s not flashing enough red lights to justify hitting the big red button. 😎
The prototype is temporary and OpenAI plans to integrate the best features directly into ChatGPT in the future.
The key features of SearchGPT are:
Providing direct answers to questions with up-to-date information from the web
Allowing follow-up questions to build context
Prominently citing and linking to publisher sites in search results
Giving publishers more control over how their content appears in SearchGPT
The debut of SearchGPT just knocked Alphabet’s (aka Google’s) shares to a 2024 low, sparking some serious side-eye in the search engine world. While it’s got potential to shake Google’s throne, some analysts are saying, “Not so fast.” Since SearchGPT is still in the prototype phase and not widely available, Google’s crown isn’t slipping just yet.
Other news worth knowing
AI
World’s first Miss AI model crowned, and she has 200,000 followers on Instagram 🤖
The general public thinks ChatGPT is conscious, survey by University of Waterloo says.
Tech
Business
World Politics
Interesting memes
Turkish Olympic shooter Yusuf Dikec’s simple, non-chalant attire with a normal-looking t-shirt and his gun won him silver.
The most-shared images show Dikec shooting in a T-shirt with one hand in his pocket, a seemingly standard pair of glasses and an impassive look on his face. He’s been likened to a regular guy competing at the Olympics, or even a hitman.
Source: Reddit
Australian breakdance participant Raygun’s performance was under question. Source: Reddit
Source: Instagram
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