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The raging trust crisis and its consequences
Americans are losing trust in leaders across every area of their lives — and the information coming from every source of their news, according to the 21st annual Edelman Trust Barometer, out Wednesday, which measures trust in institutions globally.
Why it matters: The sobering report shows that people crave facts more than ever, but most have bad habits and a growing distrust of everything from journalists to vaccines and contact tracing.
Details: Across every type of institution — media, government, business and NGOs — trust has fallen to historic lows, according to the report.
- Business is the only institution that is now perceived as being both ethical and competent enough to solve the world's problems.
- CEOs are the only societal leaders trusted to tell the truth and fix problems.
The trust deficit has gotten so bad that people don't know who or what to believe anymore, and they don't even trust themselves to get facts right.
- A majority of people around the world believe that journalists, government leaders and business leaders are all purposely trying to mislead people by spreading misinformation.
- Most people have terrible information hygiene, and admit that they don't actively verify information, avoid echo chambers or share things without first vetting information.
The big picture: The 2021 Trust Barometer, titled "Declaring Information Bankruptcy," offers one of the bleakest pictures of societal trust globally in the past two decades, thanks in large part to the coronavirus pandemic.
- The data shows that even the most powerful countries — like the U.S., China, Germany and the U.K. — are experiencing a record trust deficit, especially in government.
- Trust in government in the U.S. has crashed following the 2020 election, especially among Republicans.
That trust gap has real-world consequences. Only 59% of people in the U.S. say they are willing to take the vaccine if it becomes available to them within a year. Those who are unwilling to take the vaccine tend to have poor information hygiene.
What to watch: The data suggests that two of the biggest global economies — the U.S. and China — have fallen below India as now the most trusting country in the world.
- "Neither the U.S. or China have the trust capital they need to be global leaders in this time of multiple crises," per the report.
Housing inventories continue rebound with July gains
The number of homes available for sale is rising, which is good news for prospective buyers who have been getting priced out of the market.
Why it matters: Home prices finally started to pull back in July as inventories rose. Prices had been surging over the last year as low mortgage rates and the sudden desire for more space caused housing demand to outstrip new supply.
By the numbers: Total housing inventory stood at 1.32 million units at the end of July, according to the National Association of Realtors. This was a 7.3% gain from June.
- This was the sixth straight month of increases. Inventory is now 28% higher from its February low of 1.03 million.
- Still, that's down 12% from its 1.50 million level a year ago.
What they’re saying: "Limits to available inventory and high prices are some of the factors likely responsible for the recent cooling in housing activity relative to several months ago," JPMorgan economist Daniel Silver says.
- The median home was priced at $359,900 in July, down from $362,800 in June.
- "With more homes on the market, price appreciation has moderated ever so slightly, taking price gains down a notch from the mesosphere to the stratosphere," Wells Fargo senior economist Mark Vitner says.
Yes, but: As the chart above shows, inventories are still very low. Meanwhile, the pace of existing-home sales is up 1.5% from a year ago, and the median home price is still up 17.8% during the period.
Between the lines: Conditions are not even across the housing market.
- "The current dearth of inventory is worse in the affordable segment of the housing market," ADP chief economist Nela Richardson tells Axios. "This is also where many first-time buyers, who tend to drive the housing market, are looking."
What to watch: Home sales volumes are likely to move sideways through the end of the year, Oxford Economics lead U.S. economist Nancy Vanden Houten says.
- "Going forward, the market for existing homes will be supported by strong demand and mortgage rates that remain relatively low," she writes.
- "However, inventory remains lean despite the increase in July, and that will keep a floor under home prices, which are unaffordable for many prospective buyers."




