Episode 137

Published on:

2nd May 2023

GDP Breakdown, Home Value Hype and FRC Wants a Handy

Growth in the U.S. slowed considerably during the first three months of the year as interest rate increases and inflation took hold of an economy largely expected to decelerate even further ahead. According to the Commerce Department, gross domestic product (GDP) rose at a 1.1% annualized pace in the first quarter. Economists surveyed by Dow Jones had been expecting growth of 2%.

In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.

They discuss a report stating that U.S. home prices, as measured by the seasonally adjusted Case-Shiller National Home Price Index, rose 0.15% between January and February. This month-over-month national home price uptick comes after national prices had declined every month between June 2022 and January 2023.

Chris and Saied look at news showing the continued decline of First Republic Bank's stock, an ongoing rout that has erased 60% of its value just this week on concerns about the bank's financial health in the wake of two other bank collapses.

They also offer some thoughts on the apparent end of the severe contraction in the US housing market over the past year, a bottoming-out which is raising hopes on Wall Street that America could avoid a recession altogether.

Join Chris and Saied for this fascinating and informative conversation.


What You’ll Learn in this Show:

  • The definition of gross domestic product (GDP).
  • Why businesses have been drawing down inventory and cutting equipment purchases.
  • Why home values don’t just drop across the country at the same time.
  • Why historically, housing has been a critical driver of the broader business cycle.
  • And so much more...


"GDP Report Shows Economic Growth Slowed in First Quarter" (The Wall Street Journal)

"Bankers’ pitch to save First Republic: Help us now, or pay more later when it fails" (CNBC)

"Housing market correction is running on fumes as Case-Shiller reports the first U.S. home price uptick since June—these 2 charts tell the story" (Fortune)

"The housing market's bottoming-out raises hopes that the US can avoid a recession" (Bloomberg Business)

"First Republic Bank Is a Problem With No Easy Solution" (The Wall Street Journal)

"Google Ad Revenue Drops for Second Straight Quarter" (The Wall Street Journal)

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About the Podcast

The Higher Standard
This isn’t a different standard, it’s the higher standard.
Welcome to the Higher Standard Podcast, where we give you ultra-premium, unfiltered truth when it comes to building your wealth and curating the lifestyle of your dreams. Your host; Chris Naghibi is here to help you distill the immense amount of information and disinformation out there on the interwebs and give you the opportunity to choose a higher standard for yourself. Sit back, relax your mind and get ready for a different kind of podcast where we elevate your baseline with crispy high-resolution audio. This isn't a different standard. It's the higher standard.

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About your host

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Christopher Naghibi

Christopher M. Naghibi is the Founder and Chief Executive Officer of Black Crown Inc. and Black Crown Law APC, a disruptive collective of attorneys, property managers, real estate agents and contractors who handle home sales and purchases, commercial and multifamily real estate brokerage, primarily for high net-worth and celebrity clients.

His team has over 20 years of experience, 1000+ satisfied clients, $10 million in recovered costs for clients, and in excess of $20 billion dollars in closed transactions.

As a licensed attorney, real estate broker, general contractor, and now Top 100 podcast host, Chris aims to provide free financial education that allows people to take control and democratize fear in the financial world.