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

• Consumer confidence down sharply in June

• Broker sues broker over real estate ‘monopoly’

• Buy Now Pay Later loans will now ding your credit

• Twice-yearly injection can now prevent HIV

• Gen Z is spending like it's going out of fashion

Companies mentioned in today’s newsletter

$SPX ( ▲ 0.8% )  $COMP ( ▲ 0.48% )  $ZG ( ▲ 1.0% )  $FICO ( ▼ 4.1% )  $RATE ( ▼ 0.83% )  

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 ( ▲ 0.8% ) 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 ( ▲ 0.48% ) has sued rival Zillow $ZG ( ▲ 1.0% ) 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

Buy Now Pay Later loans will now ding your credit

The rise of Buy Now Pay Later loans has introduced new flexibility for consumers, allowing them to break down purchases into manageable installments. But these loans’ impact on Americans' financial behavior has remained largely untracked by traditional credit scoring systems — until now.

Killjoy credit reporting agency FICO $FICO ( ▼ 4.1% ) has announced plans to launch a new suite of credit scores that integrate BNPL activity, addressing a major gap.

The delightfully named “FICO Score 10” and “FICO Score 10 T BNPL” aim to offer lenders a clearer picture of consumers' repayment behavior on BNPL loans, which are increasingly popular among younger adults without robust credit histories.

While responsible BNPL use could help individuals build credit, mismanaged loans — such as overspending across multiple BNPL accounts — might damage scores. A recent Bankrate survey revealed that nearly half of BNPL users faced issues such as overspending, highlighting risks.

Should you check your 401(k) today?

👍️ 

YEP.

Twice-yearly injection can now prevent HIV

The U.S. Food and Drug Administration (FDA) has approved lenacapavir, a revolutionary injectable drug for HIV prevention that requires only two doses a year. The long-acting medication is designed for individuals at risk of HIV infection and offers an alternative to traditional daily Pre-Exposure Prophylaxis (PrEP) pills. Many struggle to take PrEP consistently due to inconvenience, stigma, side effects, or cost.

Lenacapavir works by attacking HIV’s protective shell, stopping the virus from replicating at multiple stages. The process involves taking oral pills for two weeks prior to the first injection, allowing time for the drug to achieve its protective effect. Once administered, lenacapavir provides six months of protection with just a single injection under the skin.

Global rollout remains a challenge, with cost being a significant barrier. While the drug is priced at $28,000 annually in the U.S., researchers estimate it could be made for as little as (checks notes) $25 per year for low- and middle-income countries. That makes me wonder why it couldn’t cost that in America.

The YOLO economy: spending beyond means

A new survey from Bankrate $RATE ( ▼ 0.83% ) (say, they were the authors of that BNPL study above!) reveals a fascinating disconnect in U.S. consumer spending habits for 2025. Despite 54% of Americans claiming they plan to cut back on travel, dining, and live entertainment, the data tells a different story: record-high debt, booming bar and restaurant sales, and unprecedented travel demand. It seems the you-only-live-once attitude, a remnant of the pandemic era, is still driving spending, particularly among younger Americans.

“We're seeing record amounts of debt, $18 trillion in total. Credit card balances are close to a record. Rates are close a record,” said Ted Rossman with Bankrate. "Experiences are still big. People are still splurging on all kinds of experiences."

There's also a noticeable shift between Gen Z and millennials, Rossman said.

“Millennials were famously debt-averse. Gen Z, not so much,” he said. “They're bigger risk-takers with their money.”

My editor today, Sydney, is Gen Z. I asked her if this was true (about the debt thing) and she did not even answer me because she was too busy booking another vacation in Europe or something. Meanwhile consumer sentiment, once a reliable predictor of stuff like consumer spending (see story above👆🏻), is no longer aligning with actual spending. The rise of "Buy Now, Pay Later" (BNPL) schemes (see other story above 👆🏻), now extending to travel and dining, further highlights the trend. More than half of Coachella tickets, for example, were financed through BNPL. While convenient, some experts warn this could be a "ticking time bomb" if consumers overextend themselves.

Poll of the Day: Save it or spend it?

Poll Results: If the NYC Democratic mayoral primary happened on Cheddar:

We asked: Who would you rank 1st in the NYC Democratic mayoral primary?

You answered:

🟨⬜️⬜️⬜️⬜️⬜️ Adrienne Adams (28)

⬜️⬜️⬜️⬜️⬜️⬜️ Michael Blake (17)

🟩🟩🟩🟩🟩🟩 Andrew Cuomo (167 votes)

🟨⬜️⬜️⬜️⬜️⬜️ Brad Lander (39)

🟨🟨🟨🟨⬜️⬜️ Zohran Mamdani (141)

⬜️⬜️⬜️⬜️⬜️⬜️ Zellnor Myrie (4)

⬜️⬜️⬜️⬜️⬜️⬜️ Jessica Ramos (4)

⬜️⬜️⬜️⬜️⬜️⬜️ Scott Stringer (3)

⬜️⬜️⬜️⬜️⬜️⬜️ Whitney Tilson (5)

408 Votesvia @beehiiv polls