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Good morning investors!
Fun fact: Revolving credit has grown faster than non-revolving in 7 of the last 10 months.
Today we cover:
US housing market
Munich auto show
Student loans and unemployment
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📊 Economy and News
U.S. Housing Market Surges by $20 Trillion in Five Years
The U.S. housing market has grown 57% since 2020, reaching a record $55 trillion, a $20 trillion increase in just five years.
Despite high mortgage rates curbing buyer demand and forcing sellers to cut prices, home values remain elevated. New York led gains in 2025, adding $216 billion, driven by low housing inventory in the Northeast.
Meanwhile, Florida, California, and Texas saw billions in losses as demand cooled due to high insurance costs and property taxes, exacerbated by climate-related risks. New home construction, particularly in Texas and Florida, has bolstered market values, creating pockets of affordability.
Global hits:
Trump administration asks Supreme Court to let it withhold foreign aid.
German exports unexpectedly fall, investor morale plunges.
French parliament ousts prime minister, deepening political crisis.
Rate cut: In the most likely scenario being priced in by markets, the Fed on Sept. 17 will lower the overnight funds rate by 25 basis points, or 0.25 percentage point.
Consumers getting worried? Americans grew notably less sanguine about the job market in August amid a notable rise in concerns about the ability to get new employment in the event of a job loss, a report from the New York Federal Reserve showed on Monday.
Similarly, a survey from Morgan Stanley showed that U.S. consumer sentiment toward the wider economy and household finances have weakened, although tariff-fueled concerns have eased.
Also, the Fed’s G.19 showed total consumer credit up at a 3.8% annual rate in July, with revolving credit up 9.7% and non-revolving up 1.8%. The increase follows softer prior months and keeps attention on card balances ahead of CPI
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📈 Stocks
S&P 500 6,495.15 (+0.21%)
DJIA 45,514.95 (+0.25%)
NASDAQ 21,798.70 (+0.45%)
BRENT CRUDE 66.23 (+1.13%)
* Prices as of Sep 9th, 12:20 AM UTC
Munich Auto Show Highlights: Major Automakers Unveil New EVs and Strategies
At the Munich auto show, global automakers showcased new electric vehicles (EVs) and affordable models amid challenges like tariffs, rising costs, and competition from Chinese firms. Key announcements include:
BMW: The iX3, part of the all-electric Neue Klasse series, will launch in Europe in March 2026 for €68,900 ($80,700). Pricing for China is under review.
Mercedes-Benz: Unveiled the all-electric GLC, based on its top-selling combustion model, aiming to regain ground in China.
Volkswagen: Showcased the affordable ID.Polo (€25,000) and ID.CROSS SUV (€28,000-€30,000), both launching in Europe in 2026.
Stellantis: Will not focus solely on EVs through 2030, citing unachievable EU 2035 emissions targets.
Polestar: Revealed the Polestar 5 GT sports car, but it won’t initially launch in the U.S. or China.
BYD: Plans to produce EVs in Europe within three years to avoid tariffs, with plug-in hybrids leading short-term sales.
Leapmotor: Introduced the B05 hatchback, launching in Europe in Q2 2026, with plans to expand to 15 models by 2027.
TOGG: Turkish startup launched the T10X SUV and unveiled the T10F sedan, with sales starting in Germany by late September.
GAC: Launched the Aion V SUV (€36,000) in Poland, Portugal, and Finland, with the Aion UT crossover to follow in 2026.
Good to know: StubHub IPO: Ticket reseller aims to raise up to $9.2 billion, pricing at $22 to $25 per share.
Nebius’ stock soars 60% on multibillion-dollar AI infrastructure deal with Microsoft.
💵 Personal Finance
Managing Student Loans During Unemployment
The U.S. job market is showing signs of strain, with only 22,000 jobs added in August and the unemployment rate climbing to 4.3%, the highest in nearly four years, according to the Bureau of Labor Statistics. For the over 40 million Americans burdened with more than $1.6 trillion in student loan debt, these conditions can make monthly payments feel overwhelming, especially for those who’ve lost jobs or are struggling to find better work.
Federal student loan borrowers facing financial hardship have options to ease the burden.
Income-driven repayment (IDR) plans can reduce monthly payments to a percentage of discretionary income, potentially dropping to $0.
Borrowers should provide proof of current income if their earnings have recently decreased, as the government may otherwise base payments on outdated tax returns.
Unemployment Deferment allows borrowers receiving unemployment benefits or actively seeking full-time work to pause payments, though some loans may accrue interest.
Similarly, the Economic Hardship Deferment, available for those on public assistance or with low income, saw usage double from 50,000 to 100,000 borrowers between Q3 2024 and Q3 2025. Both deferments have a three-year limit and will be phased out for new loans after July 1, 2027.
If deferments aren’t an option, general forbearance may be available, but borrowers should check if interest will accrue, as this could increase the loan balance.
Making payments to cover interest during deferment or forbearance can prevent this.
For those with private student loans, options are limited, but contacting the lender to explain the situation may uncover relief possibilities. Proactive steps can help borrowers manage their debt during tough economic times.
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👩🏽⚖️ Legal Stuff
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