Opening Comments
My last note was about my uncanny ability to string curse words together to make them into a thing of beauty. I received a shocking number of emails and texts from readers who were commenting on my cursing skills and telling stories about their careers. I even heard from a couple of those who served in the armed forces and the rampant swearing that occurred. The most opened links were the video of Jamie Dimon unleashing on employees during the pandemic about work ethic and the ugly sculpture in the Hamptons which is being considered an eye-sore and is getting the residents in a tizzy. Below is a funny picture sent to me by a reader. I had cited the book Rogue Warrior as an inspiration for my cursing.
I left Wake Forest on Saturday and flew out to the Hamptons as my friend was having a party. I can tell you that five days in Winston-Salem, NC is too many for me. I will be in NYC for meetings this week. There were no direct flights available to JFK or LGA, so I flew to Newark. It was an unmitigated disaster that took nearly four hours to drive to Southampton.
Given I was in college dorms unpacking for much of the week, I am sure I missed a few stories. This is the shortest note I have written in years.
Markets
Economy Growing Despite Higher Rates
Tax Jurisdiction Impact on Take-Home Pay
Car Insurance Rate Trends
College Enrollment Cliff
Cocaine Dealing Frat Bro
Morgan Stanley Expanding in Dallas
10 Wealthiest Suburbs
Mortgage Rates and Impact on Cost
Professor Brian Cox explains what happens if you travel at the speed of light in this one-minute video. This is a fascinating physics lesson dumbed down for all to understand. Basically, traveling at the speed of light, distances shrink by a factor of 7,000. This means if you travel at the speed of light, you can get to a distant galaxy and get there in a minute or two. However, the downside is if you came back to earth to tell everyone what you experienced, you would find at least 4 million years had passed. My mind is blown.
Last year at this time, we dropped off our son Jack at Wake Forest for his freshman year. It was a sad but exciting time, and we still had Julia in the house for one more year. It was emotional to have your eldest child leave the nest. This year, both are children were dropped off at Wake Forest. Julia checked into her dorm on Tuesday, July 18th and Jack on Friday, August 21st. It sure made it easier having two kids at the same school.
To be clear, multiple readers gave me flak for dropping off the kids. “Let them do it alone.” “You are coddling the kids.” “My parents did not drop me off at college.” Those were some of the notes. I agree that as parents we tend to overcompensate in order to help our children. In this case, sadly, the kids check in was on a Tuesday and Friday, which meant I had to stay far longer than I wanted. It was hot and I was ready to leave after the 2nd day. Let’s just say, if you think you live in a culinary wasteland, come to Winston-Salem, North Carolina.
Last year, Jack lived in a single dorm of 96 square feet. Julia has a single of 150 square feet that feels massive on a relative basis. Coincidentally, Julia is in the same dorm that Jack was in last year. This year, Jack is in a suite with three other boys. It is two rooms and a shared common area with one bathroom. His dorm is quite nice, and his room is relatively spacious. However, living with three other people will surely lead to some chaos. Of note, thankfully, we got Jacks things moved into his living room Thursday (no key until Friday), and then the big storm came on Friday. Parents and students were scrambling to get moved in during a torrential storm, while we only had to move from his living room to his bedroom.
I have written extensively about my dislike of the term “Some Assembly Required,” as it is a lie. It should be “ALL Assembly Required.” I refused to attempt to put this cheap crap from China together anymore and my wife hired a “handyman.” Well, he took five hours to do what I could have done in two hours despite my ineptitude. I kid you not, he put together a shelf wrong FIVE times. I kept telling him the shelves were backwards and he refused to believe me. He was like Forrest Gump. He was lovely but inept. I ended up helping him and it was akin to the blind leading the blind. It is ok for me to be bad at assembly, as I do not do this for a living and admit that I am horrible. It is a problem when you suck and your job is literally to put crap together. It turns out that my wife found him on Thumbtack, and he had a two out of five rating but was the only one available. I did not learn this information until after he was done.
The campus at Wake is stunning. The student body is generally out of a Ralph Lauren catalogue. There are approximately 5,500 students in the undergrad on the 340-acre campus. The grounds are impeccable and they run the move-in process incredibly smoothly. The school has rigorous academics and a robust social life with a big athletic department.
I was sad to say goodbye to my children, and watching the tears flow from my daughter was tough for a dad to take. You want to protect your little girl at all costs, and although I know she will do great, it was hard to leave her.
Parents weekend is in early October, and it will be good to see the kids. Jack is thriving at Wake, and I am sure Julia will do the same. The next chapter begins. It is exciting and scary at the same time. I just can’t believe I have 20- and 19-year-old adult children and am officially an empty nester.
Raging parties at the Rosen’s now that the kids aren’t listening or watching.
In my Wednesday note, I commented how I felt rates moved too much on the Treasury announcement of buying back bonds. Well, it was a quick reversal on Thursday with the Treasury market selling off 6bps for both 10-and 30-year Treasury yields. Higher Treasury yields and the weaker WMT forecast pushed stocks lower with the Russell and Nasdaq underperforming -1.3% and -1.0-% respectively. I have written extensively about rates and my concerns about bond yields. Since the Fed started cutting rates 175bps in September of 2024, the 10-year yield is +109bps and the 30-year yields is +134bps. Clearly, inflation concerns, rising budget deficits, large corporate issuance, oil prices, and uncertainty about Warsh’s policies are all playing a role. On a related note, US Government debt crossed $40 trillion last week. The US added $550bn to the national debt since July 1st. Further, JPM was critical of the US bond intervention by the Treasury Department. This WSJ article outlines how the US got to $40 trillion in debt and has good charts. Although stocks rallied on Friday, they were down on the week with the S&P 500 -1.4% and Nasdaq -2.1% for the five-day period. Also of note, Treasuries continued their sell off with the 10-year closing at 4.74% and the 30-year at 5.28%. Dalio is at it again suggesting the Bessent move is a sign the debt crisis is getting closer. On a related note, my investing hero, Stan Druckenmiller, warned Bessent that Washington won’t stop spending until the bond market forces it to.
Thursday’s reversal in bond yields after Wednesday’s rally 
Interesting chart from Apollo on the economy growing despite higher rates. When the Fed began hiking in 2022, traditional rate-sensitive sectors, including office construction, rolled over quickly, see chart below. But data center construction continued to surge as investors and hyperscalers judged that AI-driven returns would exceed the higher cost of capital. High expected returns and strategic capacity needs have made AI spending largely indifferent to higher interest rates, blunting one of the main channels through which tightening normally slows activity. Combined with the growth impulse from the One Big Beautiful Bill, the industrial renaissance and prospective tariff refunds, all largely rate-insensitive, we expect growth to remain firm.
I thought the Manhattan Institute did a great job of outlining tax gains from moving jurisdictions. Generally, I outline why the uber wealthy want to move, but this article focuses on a married couple earning $120k with two kids factoring in taxes and cost of living (1st two charts). Then a single worker earning $60k (next two charts). Great interactive chart in the link.
Car insurance costs trended higher in the first half of this year after declining in 2025, and a new report projects increases in over 30 states this year. An analysis by Insurify found car insurance premiums fell 6% last year, with drivers in 39 states seeing a decline in average full-coverage premiums. However, in the first half of 2026, the average cost of full-coverage premiums rose 1% to $2,237, with 27 states having seen cost increases to date and 32 states expected to see increases by year's end. "The sharpest increase that we predict will be in the state of Connecticut, a small state where the state is expected to get a 15% year-over-year increase in its car insurance. Just looking back five years, the state of Connecticut has increased rates 67%, and the majority of the states unfortunately have seen dramatic increases across the board," Insurify CEO Snejina Zacharia explained.
This WSJ article “America’s Colleges Are Hurtling Toward an Enrollment Cliff” has some amazing charts. I have written extensively about my concerns about the value of a college education today. The costs have skyrocketed and many jobs are being displaced by AI. My son’s freshman year at Wake Forest totaled $125k, with the school’s stated price of $99k. Parent visits, Jack going home for holidays, dorm furnishings, dinners out, etc. account for the difference. The largest number of Americans born in a single year arrived on campus in the autumn of 2025, and now a falloff is looming. College enrollments are forecast to drop 13% by 2041. Yes, the top schools remain in high demand as seen with the acceptance rate charts below. However, there are over 4,000 colleges and universities, and I believe many will be out of business in coming decades. Syracuse University announced that it missed its enrollment targets this fall and caused an operating budget deficit.
The story of the cocaine dealing frat bro is getting more insane. Thomas Robinson, the 23-year-old dealer, thought he was being pranked when the cops came for him. He resisted arrest and needed to be tased. Cops found over 8 grams of coke, 8 ounces of weed, and 200 amphetamine and dextroamphetamine pills. Authorities were told by a confidential informant that “a male, using the nickname ‘T-Rob’ is selling large amounts of cocaine from the Delta Upsilon Fraternity House. Robinson’s father, Paul Robinson, a prominent Pittsburgh attorney, was implicated in the drug trafficking scandal alongside Thomas. The older Robinson is charged with felony tampering, hindering apprehension for taking steps to conceal evidence in the case, including a safe stuffed with cash and drugs and obstructing the investigation, state prosecutors said. The elder claims he did not know the safe his son gave him was full of drugs and cash.
Trump announces ‘economic warfare’ on Iran, threatens ‘tremendous’ consequences for its backers
Iran vows ‘devastating’ response as US threatens toughest ever economic hit
US warned of ‘October surprise’ from Iran amid harrowing billboards and murals
Bessent says U.S. likely won’t restart large-scale Iran combat as it steps up economic pressure
Since when does the Treasury Secretary make military comments?
Over the past seven days, 103 ships entered the strait and 89 exited it — a 27% jump from a week ago, when 76 ships entered and 75 exited. The change is even more visible compared to two weeks ago — when just 18 ships entered and 21 ships exited the waterway at the center of the dispute between the warring countries.
FBI arrests NY woman for allegedly plotting ISIS-linked attack on state Capitol building in Albany
I somehow missed the lawsuit from 21 states against the Trump Administration over the Federal Motor Carrier Safety Administration’s request for driving records data from the Commercial Driver's License Information System (CDLIS) going back five years. States suggest the demand is unlawful, while the Trump Administration states that it is necessary for proper oversight. Remember, many states have given commercial licenses to illegal immigrants and many of those do not speak English. There have been some high-profile accidents which have resulted in the death of innocent Americans due to the illegal alien drivers. Although I see both sides of the argument, I am fully supportive of getting illegal alien drivers off the highway, especially those who do not speak English.
I have written extensively about my support of capitalism over socialism and did it again in my last note. This CBS News poll is concerning but not surprising regarding the Democrats support of socialism.
In the early 70s, there were ~4 million SNAP recipients, or about 1/50 Americans. Today there are over 37 million SNAP receipts, or about 1/9 Americans. The poverty rate today is notably lower than that of the early 70s. Despite the fact that the poverty rate has been almost cut in half, there has been a massive increase in snap recipients.
North of 50% of all "employment growth" in California and New York is fake home care fraud.
Federal judge blasts Rubio’s 75-country visa freeze as ‘Orwellian,’ strikes down policy
Judge Jeannette Vargas directed the government to revisit cases in which applicants were denied under the 75-country freeze
Pentagon orders 30 colleges to sever ‘problematic’ ties to China, Russia, Iran
Targeted institutions include Harvard, MIT, and Johns Hopkins University.
Deadbeat AOC’s student-loan mooching should be a red flag to her 2028 supporters
Despite earning $173,000 a year as a member of Congress, AOC refuses to pay back her student loans — a red flag that she has no respect for taxpayers.
Pastor unleashes on Dearborn as religious tensions erupt at city council meeting: ‘Enough is enough’
This is in response to Muslims taking over the town and imposing Sharia Law.
Ex-Trump Aide Says Natalie Harp is ‘So Obsessed’ With the Prez ‘It Alarms Secret Service’
‘Rape leaflets’ for migrants enrage the British public — and prove Trump’s point
Open borders are an idiotic policy that I was adamantly against. I support legal immigration and believe the Melting Pot makes America special. Having 250k illegal immigrants come into your country each month never made sense. Just look at Spain in recent weeks.
Supreme Court allows Trump to continue White House ballroom construction for now
Trump reshuffled his portfolio in June, selling names like Meta and buying Berkshire Hathaway
I disagree that Trump’s son should have the ability to trade the President’s portfolio. Too many conflicts and opportunities to get inside information.
Natalie Harp’s Intimate Letters to Trump Revealed in Full
Inappropriate and embarrassing.
Portugal enacts ‘burqa law’ largely prohibiting face coverings in public
Walmart hikes full-year outlook, says it will use huge tariff refund to keep prices low
Alibaba shares fall 3% as AI spending drives 75% drop in net income
Ken Griffin says Citadel unwound more than 80% of risk tied to Situational Awareness portfolio
Griffin also confirmed that the firm’s flagship multistrategy fund ended July up 5.9%, marking one of its best month since 2022.
I hope Meta gets crushed at trial. Social media does so much more harm than good to teens. This CNBC article suggests a Meta loss in the lawsuit could end social media as we know it.
Amazon to expand drone service to nearly 500 cities after targeting 1 million deliveries this year
Fannie Mae Hit by Turmoil in Senior Ranks as Roughly 12 Executives Are Let Go
The departures are raising concerns about stability inside the government mortgage giant
Bitcoin, ether surge as Trump urges Congress to pass crypto Clarity Act
Guggenheim’s Beaten-Down Loan Whipsaws as Lenders Digest Call
U.S. Workers Are Paying More for Healthcare, and Next Year Will Be Worse
For 2027, employers face their biggest health-insurance increases in at least two decades
Why Is This Scumbag Still In America?
I write a lot about career criminals and repeat offenders. This migrant stalked and attacked women and was arrested three times for sexual battery before fireman saw him trying to rape another woman in broad daylight. Who are the idiot judges and DAs that let an ILLEGAL IMMIGRANT go over and over again? What happened to consequences for crime?
Lindsay Clancy brutally strangled her 3 kids to death. Despite this, moms are waiting outside the courthouse to support her? What the hell is wrong with people?
Parents Are Paying $95,000 for Gap Years to Give Their Kids an Edge
The lack of hard evidence on the benefits of these programs hasn’t stopped families from buying in.
San Francisco Bay Area dethroned as largest tech talent market
NOAA releases fall weather predictions for all 50 states as El Niño grows stronger
America’s favorite vegetable under major threat of looming California droughts
Tennis Fans Outraged Over ‘Scandalous’ Ticket Prices For 2026 US Open
I have written extensively about the rising costs for entertainment. Going to a concert or sporting event is out of control. The cheapest US Open ticket for the first round at Arthur Ashe Stadium is $327, while the cheapest ticket at Louis Armstrong Stadium is $466 for the opening session.
6 Exercises Physical Therapists Wish Everyone Did to Age Well
Cancer vaccine from Moderna, Merck shows promise in late-stage trial; both stocks soar
New study finds link between sugary drinks and stomach cancer
The traditional respiratory virus season hasn’t started, but Covid is already climbing
Maybe the robot would not have made the mistake.
Morgan Stanley decided on Dallas for expansion outside NYC. If I were the CEO of a major financial firm, there is no chance I would try to expand in NYC. I would be looking at South Florida, Dallas, and Nashville. These are pro-business cities that welcome you with open arms. Morgan Stanley plans on relocating 4,800 jobs to Texas by 2031 and will anchor a new $1.3bn 709,000 square foot skyscraper. What is the average income of the nearly 5,000 lost jobs? How much in lost income tax revenue, sales tax revenue? What is the multiplier effect on that lost wealth? Low IQ DSA politicians like Mamdani have no idea. Do you think the constant vilification of wealth and hate of capitalism by the DSA and the Mayor of NYC had an impact on the decisions by major financial institutions to expand elsewhere? I do. Ken Griffin made it crystal clear that Mamdani’s actions have led to the decision to expand Citadel’s footprint in Florida where they will hire more talent than NYC over the next decade. Elections have consequences, and voting in a socialist into the biggest capitalist city in America does not bring confidence to big business.
Interesting USA today article about the 10 wealthiest suburbs in America.
Scarsdale, New York. This New York suburb, in Westchester County, boasts an average household income of $612,591 as of 2024. The average Scarsdale home is worth $1.7 million as of April 2026.
West University Place, Texas. An unsung suburb of Houston, the city is named for nearby Rice University. Average household income is $439,594. The average home is worth $1.7 million.
Rye, New York. Another Westchester suburb, Rye is known for its waterfront. Average household income is $428,806. Average home value is $2.4 million.
Los Altos, California. A suburb of San Jose, Los Altos is better-known as part of Silicon Valley. Household incomes average $417,182. The average home is worth a whopping $4.8 million.
Paradise Valley, Arizona. This Phoenix suburb is known for golf resorts and spas. The average household income is $408,500, and home values average $3.7 million. Fun fact: Paradise Valley didn’t appear anywhere in the 2025 rankings of wealthy suburbs because it was too small: Its household count didn’t reach 5,000 until 2024.
University Park, Texas. The word “university” seems to go a long way if you’re a suburb in Texas. This Dallas suburb is named for Southern Methodist University. The average household income is $407,253, and home values average $2.6 million.
Alamo, California. This suburb of San Francisco and Oakland sits in Contra Costa County. Household incomes average $401,221. Home values average $2.6 million.
Southlake, Texas. This Dallas/Fort Worth suburb is named for Grapevine Lake. Household incomes average $384,530. Home values average $1.3 million.
McLean, Virginia. The District of Columbia’s most affluent suburb is McLean, home to diplomats and spies. The average household income is $379,689, and home prices average $1.8 million.
Orinda, California. Another San Francisco suburb, Orinda sits in Contra Costa County, east of Berkeley. Household incomes average $376,741, and home values average $2 million.
Mortgage rates have increased due to the selloff in US Treasuries in recent weeks. The 30-year fixed-rate mortgage is now back up to 6.76%. Remember, it was 2.88% in July 2021. The 30-year fixed rate mortgage is +70bps since February of this year. I want to put the move since July 2021 into perspective. If you buy a home for $1.25mm and put $250k down, that means you borrow $1mm. At 6.76%, your monthly payment is $6,493. If you had the rate from July 2021 of 2.88%, your monthly payment is $4,152/month. The difference is an additional $2,341/month. That is massive on a $1mm mortgage.
© 2026 The Rosen Report LLC. All rights reserved. Does not constitute investment, financial, legal, or tax advice. Consult with your lawyers and professional financial advisers. Rosen Report™ #920 ©Copyright 2026 Written by Eric Rosen.
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