• So far this year there have been 149 bank mergers announced, which is already more than the 119 mergers announced throughout all of 2020. Much of the deal activity has been driven by regional and community banks that need to expand their technology capabilities and client base. 
• The Fed announced that the U.S. household net worth rose by $23.2 trillion over the past year. This far exceeds the previous all-time high of $11.6 trillion back in 2019. While the government’s stimulus plans explain some of this number, the recent gains have been driven from the appreciation in equity and real estate markets. It seems the wealth effect - that is, consumer spending increasing as the value of peoples’ assets rise, is in full swing.
• Last week the stock market experienced higher volatility as investors worried about the $300 billion in liabilities that Chinese real estate company Evergrande currently has. Will the collapse of Evergrande have ripple effects throughout China’s economy? As 15% of the nation’s GDP is tied to the construction and property industries and 70% of the wealth of China’s urban population is in the housing market, there is that possibility.
• Although there has been increased attention given to the Federal Reserve’s plan to decrease it bond-buying program, many central banks are still pursuing easy money policies. Japan has not provided any indication that it will decrease its stimulus efforts, China recently injected $30 billion into its economy to offset the Evergrande risk, Turkey decreased it interest rates last week, and the EU has rejected any plans to taper. As a result, JP Morgan economists still estimate that the central banks of developed nations will add a net $1.5 trillion in assets to their balance sheets next year.