- __🧹Messy…__ Former __FTX__ CEO Sam Bankman-Fried apparently cursed regulators in a DM-based [interview](https://www.vox.com/future-perfect/23462333/sam-bankman-fried-ftx-cryptocurrency-effective-altruism-crypto-bahamas-philanthropy) with Vox and said his "biggest" mistake was filing for bankruptcy. Meanwhile, FTX's new CEO called the mess "[unprecedented](https://www.wsj.com/articles/ceo-overseeing-ftx-restructuring-calls-it-an-unprecedented-mess-11668707836)" (and he oversaw the Enron bankruptcy). 
- __🌶️ Spicy…__ An FTX investor is [suing](https://variety.com/2022/digital/news/ftx-lawsuit-larry-david-tom-brady-stephen-curry-crypto-1235434627/) Larry David, Tom Brady, and Steph Curry, among others, alleging their paid promotions for the now bankrupt crypto exchange lured "unsophisticated investors" into a "Ponzi scheme." 
- __🤖 Techy…__ Crypto hardware wallet makers __Ledger__ and __Trezor__ saw booming sales last week after FTX froze customer withdrawals. Hardware wallets let crypto “hodlers” self-custody their coins (no exchange required).

SBF'D

Ian Redman

The Crypto Catch-Up…

__Found a $30 [Michael Kors](https://robinhood.com/stocks/KORS/) bag…__ under a shoe rack. __[TJX](https://robinhood.com/stocks/TJX/)__ — the discount retailer behind TJ Maxx, Marshalls, and HomeGoods — is humming along as consumers scour its aisles for cute deals. This week, TJX beat quarterly sales expectations and boosted its outlook, because there’s no better feeling than finding perfectly fitting __[Levi’s](https://robinhood.com/stocks/LEVI/)__ for $11 after hours of scavenging. 

- __The “exciting treasure-hunt shopping experience”__ is still resonating, TJX’s CEO said. Same-store sales at Marshalls and TJ Maxx were up 3%. And while the S&P 500 is down nearly 18% for the year, TJX stock is also up 3%.
- __Dress for less:__ Yesterday, rival rack-rummaging destination __[Ross](https://robinhood.com/stocks/ROST/)__ also delivered better-than-expected results, despite declining sales and profit. Shares popped 13% after it issued higher-than-anticipated guidance for the holidays.

__It’s the “affordable splurge” vibes for me…__ and the unaffordable splurge for others. While discount retailers are banking on low prices, luxury retailers are enjoying resilient demand. Bloomingdale’s owner __[Macy’s](https://robinhood.com/stocks/M/)__ raised its annual profit forecast as higher-income shoppers scooped up designer blazers and fancy beauty products. Macy’s isn’t the paragon of luxury, but it does stock more luxe goods than department rivals like __[Kohl’s](https://robinhood.com/stocks/KSS/)__. Interestingly: 

- __While Macy’s same-store sales were down__ for the quarter, its higher-end brands grew. Bloomingdale’s revenue was up 5%. Meanwhile…
- __Its luxury beauty retailer, Bluemercury,__ enjoyed *14%* sales growth as shoppers splurged on pricey serums and designer foundations.

The unmatched thrill of bargain-hunting (Chip Somodevilla/Getty Images)

Hunt

__The middle is an awkward spot…__ during an economic downturn. Lower- and middle-income consumers are moving downmarket to discount retailers like TJX and __[Walmart](https://robinhood.com/stocks/WMT/)__, while wealthier consumers are sticking with luxury brands. Meanwhile, more middle-of-the-road retailers are hurting: this week Kohl’s withdrew its annual forecast after sales fell 7% and __[Target](https://robinhood.com/stocks/TGT/)__ cut its holiday outlook as demand slackened.

As more shoppers bargain-hunt, TJ Maxx and Marshalls grow while “in-between” retailers suffer

__Big Banks join the rent-aissance…__ Fewer people are buying houses, so banks are shifting their focus from home loans to rental properties: this week __[JPMorgan](https://robinhood.com/stocks/JPM/)__ [said](https://www.bloomberg.com/news/articles/2022-11-15/jpmorgan-forms-new-joint-venture-for-1-billion-in-rental-houses) it’s teaming up with property giant __Haven Realty Capital__ to build $1B worth of single-family homes for renters. As US homes sales continue sliding, JPM is preparing for a rental surge:

- __Bettin’ on the ’burbs:__ JPM and Haven plan to buy 250 “built to rent” homes in the Atlanta area, and then develop entire communities of new suburban rental homes.
- __Renting, revamped:__ Last month, JPM started testing a platform that aims to help landlords digitize monthly rental payments — 78% of which are still paid by check. 

__Renting is the new buying…__ because many can’t afford to buy right now. Mortgage rates have more than doubled in the past year, making the long-term cost of homeownership prohibitive for many. While banks are earning higher interest, mortgage demand has plunged 40% from a year ago.

- __It’s bad for buyers…__ *and* for banks: JPM issued $15B of mortgage loans last quarter — 46% less than a year ago. JPM laid off mortgage workers this year as slumping revenue dented profits.
- __Rival [Wells Fargo’s](https://robinhood.com/stocks/WFC/)__ mortgage volume has fallen 90% since last year, and it’s also laid off mortgage workers. __[Rocket Mortgage](https://robinhood.com/stocks/RKT/)__, __[Redfin](https://robinhood.com/stocks/RDFN/)__, and __Better.com__ have also cut staff, and some mortgage startups have gone bankrupt.

__It pays to be pragmatic…__ JPM could capitalize on America’s housing-affordability crisis by capturing a new generation of renters. Builders first popularized the build-to-rent model during the Great Recession as a way to keep building even when people weren’t buying. Now builder confidence is at its lowest level since 2012, thanks to soaring rates and construction material costs. By shifting strategy banks could see another build-to-rent boom.

JPMorgan invests $1B in rental homes as pricey houses kick off an American rent-aissance

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Average 401(k) balances fell for the third straight quarter, down 23% from last year

The Crypto Catch-Up…

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