Things Have Changed Things Have Changed

32 years ago, Mcdonalds opened a restaurant in Moscow. Many people interpretted it as a soft integration to the west. In 1990, 30,000 people lined up for the opening at Pushkin Square, for many, it was the first taste of western consumerism. Since then, the Russian people have fallen in love with the Big Mac and the chain has grown all over the country. 
But today, the American fast-food giant has pulled out of Russia entirely. McDonalds closed over 800 stores in the country and ended up selling their productive resources to the Russians. The new owner replaced the symbolic golden arches with a new brand, "Vkusno & tochka", which translates to "Tasty & That's it".
But McDonalds isn’t the only one. So many other companies are leaving Russia! From the Auto industry (Ford, Toyota, Volkswagen AG), to the Finance industry (Goldman Sachs, Visa, American Express, and Paypal), companies are either suspending operations or limiting their services in the country of 146 million people - check out this article to see who's made drastic measures.
The sanctions of the west are definitely taking effect and the Russian economy is drastically changing… But are the changes what the west was aiming for?
Last episode, we talked about what Sanctions are and Professor Seth Benzells work around studying their effects. In this episode, we’re going to hear the professors thoughts about where policy makers might want to spend more time.
Tune in to learn about which Moscow factory, that used to employ 10,000 people, is being sold to the Russian government for $1 rouble..

Some Helpful Links:
Simulating Russias and Other Large Economies' Challenging and Interconnected TransitionsWhat Companies have Pulled Back from RussiaWhat to KNow as U.S., Allies Put Sanctions on RussiaHow New Sanctions Could Cripple Russias EconomyProfessor Seth Benzells ResearchSupport the show

As one of the worlds most televised conflict rages on in Ukraine, western countries, not directly involved, look to utilize a weapon that is forged by economists..
The sanctions imposed on Russia are some of the largest and far-reaching the world has ever seen.. with western countries and international corporations completely cutting ties with the once major emerging economy.. But is this economic weapon working?
Thanks to the pandemic, Sanctions can exacerbate the issues that already trouble the global supply chains, ultimately contributing to inflation…
Here at Things Have Changed, we’ve sat down with our favorite economist, Professor Seth Benzell, who has done some research on assessing how effective western sanctions would be on the Russian economy. One important note is that Seth worked on this with a team of Russian economists at the Gaidar institute, a major center of economic research and training in Russia. On this first episode, we talked about why would sanctions be prescribed and how exactly this would play out in the Russian economy.

For our next episode, we chat more about some ideas that Seth has about where the sanctions should be targeted! To read about it today, check out the article he posted on Warontherocks.com titled “To really hurt Russia’s economy, Target Investment and Human Capital, not gas”. 

Helpful Links:
Western Sanctions are Nothing like the World has SeenWestern Businesses Pulling OutHow is the Russian Economy Doing?Anonymous Tipsters and Russian IntelligenceWhen Central Banks Face SanctionsHow New Sanctions Could Cripple Russias EconomyWater-shed Moment in Global Economic History



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The Great Deceleration in housing might just be bigger than a seasonal cooldown.
The economic shock of higher mortgage rates means borrowers are getting stretched thin to a degree unseen since 2006. And home shoppers in April and May are finally backing away from record home prices.
On Thursday, Freddie Mac deputy chief economist Len Kiefer tweeted about what this downward shift means: "The U.S. housing market is at the beginning stages of the most significant contraction in activity since 2006."
So today on THC, we’re going to talk about the problem of affordability in many hot markets, from Phoenix, Charlotte to Toronto, Canada and what that impact could be.

Important Links:
Even Deep-Pocketed Buyers Are Starting to Back Away From the U.S. Housing MarketThe housing market is entering the ‘most significant contraction in activity since 2006,’ says Freddie Mac economistToronto Home Prices Slide for Third Month on Higher RatesMortgage Rates Hit 5.27%, Highest Level Since 2009Support the show

Nearly three-quarters of Americans say owning a home is a higher measure of achievement than having a successful career, raising a family or earning a college degree, according to a new survey.
Record high housing prices and rising mortgage rates are causing the housing market to cool. For the 3rd straight month, sales have decreased at the slowest pace since the earlier months of the pandemic.
Despite the recent cooling, Home prices still rose more than 20% Year-Over-Year, which is the biggest surge in 35 years.. and you know our incomes haven’t risen that much.
What’s even more interesting is that Spring, or the last season, usually sees the majority of home sales on average during the year, typically about 40% of home sales happen in Spring time happen between March and June!
In our last episode, we covered how it’s getting really hard to buy homes, especially for first-time home buyers… Although the market is cooling and we’re seeing some price decreases, the prospect of buying a home is still a distant dream for many of us. There is less housing available for rent and sale than at any time in 30 years, and things are only getting worse. This undersupply is concentrated in the lower end of the market, and as a result homelessness has become one of the big problems in booming cities.

Some Helpful Links:
Homelessness in New York and the SourceSqualor Behind the Golden GateOvercoming the Nation’s Daunting Housing Supply ShortageReal Estate AffordabilityTrudeau to outlaw Foreign Home Buyers in CanadaEnd Hype with Callye KeenEnd Hype coaches entrepreneurs to transform product ideas into business realityListen on: Apple Podcasts   Spotify
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At the closer end of 2021, inflation started to scare the average person. Prices getting higher was something that not only worries the average consumer, but the Federal Reserve. The exist mainly to control this inflation - and in 2022, they realized they had to do their job.
The Federal Reserve started raising interest rates at a fast pace. If you’ve been listening to THC, you know that this means that borrowing money will get more expensive. Credit cards interest rates would get more expensive, auto loans would have higher interest rates, and mortgages would be harder to afford. That’s exactly what happened.

t’s been long-understood that Owning a Home Is the American Dream. Well for us millennial it’s kind of becoming a distant dream.. Scratch that its actually become a nightmare!
The average home prices in America have been on a tear! Buying a House Has Never Been More Difficult. Since the pandemic Average home prices have increased by 33%! If high prices weren’t enough, mortgage rates which reached record lows at the start of 2021, are now rising at their fastest pace in decades.
So what can first time home buyers do? Today, on Things Have Changed, we’re going to talk about the Housing Market - the different factors that are impacting it and could there be a likelihood of another 2008 Housing Market crash?? Tune in!

Some cool reads:
Housing in America has become much harder to affordHousing Markets Exposed to Interest Rate HIkesAmerican Property Market Looking Bubbly4 Ways to Get Ahead in These TimesEnd Hype with Callye KeenEnd Hype coaches entrepreneurs to transform product ideas into business realityListen on: Apple Podcasts   Spotify
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As cities come back to life with the influx of people returning from their COVID getaways, the rise of rent prices are hurting us all. Some cities are even seeing 60% rent increases year-over-year.
Just when we thought inflation was going to come under control with the Fed rising rates, we might have been too optimistic. Rent or housing on average is the largest expense an American has on a monthly basis. Even an incremental rise in housing expenses could mean displacement or a serious re-designing of your overall budget.
On Things Have Changed Podcast, we’re going to do a series related to housing - one of your largest financial burdens on a monthly basis. On today’s episode, we’re going to talk about how Rent could displace millions of Americans.

According to rent.com, this is where rents are rising:
2 Bedroom Apartments
Chandler, AZ (+68.6 percent)Miami, FL (+59 percent)Portland, OR (+51.8 percent)Austin, TX (+50 percent)Philadelphia, PA (+47.8 percent)Tacoma, WA (+46.6 percent)Salt Lake City, UT (+46.5 percent)Nashville, TN (+45.4 percent)Little Rock, AR (+45.2 percent)Jersey City, NJ (+41.2 percent)These are the Americans cities that have gotten cheaper, according to rent.com:
2 Bedrrom Apartments
Shreveport, LA (-18.7 percent)Wichita, KS (-18 percent)Toledo, OH (-16.4 percent)Indianapolis, IN (-12.1 percent)Scottsdale, AZ (-11.5 percent)Anaheim, CA (-10.7 percent)Arlington, TX (-10.5 percent)Cleveland, OH (-10.5 percent)Kansas City, MO (-9.1 percent)New Orleans, LA (-8.3 percent)
Some interesting stories:
Dallas Rent Prices RiseRent Averages in the USAEnd Hype with Callye KeenEnd Hype coaches entrepreneurs to transform product ideas into business realityListen on: Apple Podcasts   Spotify
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