Hello, Wednesday-N2K’ers!

Gen Z, in particular, is going on a spending spree like never before, despite going into record amounts of debt to do so. To quote the president, perhaps it’s because they “don’t know what the f*** they’re doing.”

(Checks notes).

I actually think he was talking about something else there.

—Matt Davis, Need2Know Chedditor

News You Need2Know

Companies mentioned in today’s newsletter

$SPX ( ▲ 1.11% )   $COMP ( ▲ 3.04% )   $ZG ( ▲ 1.76% )   $FICO ( ▲ 2.41% )   $RATE ( ▼ 1.39% )  

Consumer confidence down sharply in June

Consumer confidence in the U.S. economy took a hit in June, reflecting growing anxiety over tariffs and unpredictable trade policies. The consumer confidence index dropped to 93, down 5.4 points from May’s brief surge to 98.4. Economists were surprised by the regression, as many had anticipated slight improvements.

Concerns about tariffs imposed under President Donald Trump’s administration remain at the forefront of consumers’ minds. Fears over how these import taxes impact personal finances, coupled with inflationary pressures, have clouded the outlook for future income, business conditions, and job opportunities. President Trump’s biggest donor, Elon Musk, also predicted a recession this year on Twitter during the pair’s recent falling-out.

Meanwhile the stock market is within 1% of its February record after the $SPX ( ▲ 1.11% ) continued to rise yesterday, which is odd, really, when you think about it.

Song of the day: Money

"Money" is a song by Pink Floyd from their eighth studio album “The Dark Side of the Moon” made in 1973. Written by Roger Waters, it opened side two of the original album. It became the band's first hit in the United States, reaching number 13 on the Billboard Hot 100. The song is written in an unusual 7/4 time signature, but I have no idea what it’s about. Do you?

Broker sues broker over real estate ‘monopoly’

Real estate brokerage Compass $COMP ( ▲ 3.04% ) has sued rival Zillow $ZG ( ▲ 1.76% ) for alleged anticompetitive behavior because of Zillow’s rule barring homes from being listed on its platform if they’ve been publicly marketed elsewhere for more than one day.

Compass argues this “Zillow Ban” monopolizes home listings, because sellers benefit from diverse marketing to attract more buyers. Compass says Zillow’s policy “forces sellers to make a Hobson’s choice between access to Zillow’s audience — which no competitor can replicate — and the benefits of broader marketing exposure.” Compass claims this rule constitutes “a blatant abuse of market power in violation of federal antitrust laws.”

Zillow, remarkably, refutes the accusations. I love it when lawyers write about the person they’re suing. It’s so convincing, isn’t it?

The lawsuit comes as a report from Harvard University shows residential real estate is pulling further away from ordinary Americans, becoming more expensive, less attainable, and increasingly stymying efforts to make a market that works for everyone.

Home prices hit a new all-time high in 2024, with the median at $412,500. A borrower would need an annual income of at least $126,700 to afford a mortgage payment on a home of that price, using the traditional lender ratio of 31% debt to income. As of 2023, only 6 million of the nation’s nearly 46 million renters can meet this benchmark.

Today on the ‘gram: Do u Labubu?

Post of the day: It’s an eff-CC violation

Quote of the Day