| This is Bloomberg Opinion Today, a freed container ship's cargo of Bloomberg Opinion's opinions. Sign up here. Today's AgendaWe've Seen This Movie BeforeThe implosion of Bill Hwang's Archegos Capital Management, the investment firm that was forced to liquidate more than $20 billion worth of stocks, prompted a sense of deja vu in a number of my Bloomberg Opinion colleagues. Several major banks face enormous losses after Hwang, an alumnus of Julian Robertson's legendary Tiger Management, defaulted on margin calls. For Timothy L. O'Brien, the collapse brings to mind the 1998 saga of Long Term Capital Management, which was forced to liquidate after gorging on too much debt. Then, as now, a lack of transparency was a big part of the problem. But regulators should have seen this one coming, says Elisa Martinuzzi. Allowing investors to build huge stakes in companies using derivatives hidden from public view — and using borrowed funds to do so — puts the onus on a handful of Wall Street prime brokers to police their own risk. Capital requirements introduced after the 2008 financial crisis have made the business of lending to hedge funds more expensive, leaving only an elite bunch of firms in the business. A market in which crowded trades are financed by a small group can only intensify the threat to financial stability. Shuli Ren, meanwhile, plays the world's smallest violin for the banks that backed Hwang: They should have known better. It was never any secret that some of the Chinese internet companies Hwang liked are volatile, illiquid and have little backing from long-only institutional investors. But greed got the better of everyone concerned. The only question now is which banks can sell quickly to minimize their losses — and which heads will roll. Double Whammy for U.S. HomebuyersThe housing market boosted the U.S. economy last year as Americans took advantage of record-low mortage rates to buy property or lock in savings through refinancing. The Freddie Mac 30-year fixed mortgage rate started 2020 at 3.72%, and plunged to 2.65% by the start of 2021. But, as Brian Chappatta points out, rates have since risen for six straight weeks, to 3.17%, the highest level since early last summer.  Unsurprisingly, the demand for refinancing has dropped sharply. Cash-out refinancing — in which the borrower not only cuts the interest rate on their loan but also increases the size of their new mortgage by borrowing against equity in their home — is not as attractive as it was last year, when this practice generated $152.7 billion, the most since 2007. But there's worse news if you're in the market to buy. New housing starts have slowed, too. There are only 645,000 residential homes for sale in the U.S., down almost 50% from a year ago and the fewest in at least five years. This means buyers are more likely to get into a bidding war, just when mortgages are climbing: The S&P CoreLogic Case-Shiller U.S. National Home Price Index reached a record high in December, increasing 10.4% from a year earlier. Another double-digit increase is likely to show up in the January data, which will be released tomorrow. Amazon's Attack on Critics Is Bad PRAs a unionization drive at its Bessemer, Alabama, warehouse comes to a head this week, Amazon is scoffing at its critics — including U.S. Senators Elizabeth Warren and Bernie Sanders — and defending itself with assertions that are demonstrably false, say Timothy L. O'Brien and Nir Kaissar. This is a risky game, especially when its claims are easy to fact-check and when there's a growing public perception that U.S. companies don't do enough to help solve income inequality. Regardless of the outcome of the union vote in Bessemer, the company is practically begging lawmakers to intervene on behalf of its beleaguered workers. The World Needs More PeopleIn 1798, the English cleric and economist Thomas Robert Malthus predicted overpopulation would lead to food scarcity. Many scientists now argue population control is essential to tackling the climate crisis. But Tyler Cowen reckons the world has the opposite problem: Population growth, which is slowing everywhere at an alarming rate, will likely fall to zero at the end of the century. Not only would this be bad for the global economy, he argues, but the greater tragedy would be a failure to also take full advantage of Earth's capacity to sustain human life. Governments shouldn't try to reduce fertility rates — that's happening already — but should instead make larger families a more appealing option, both economically and otherwise. Telltale ChartsLast spring's plunge in stocks met the standard definitions of a "bear market." But John Authers argues it's more useful to think of the dive as an anomalous spasm in a long bull market.  Further ReadingPresident Joe Biden should call for a bipartisan examination of ballot access and ballot integrity. — Bloomberg's editorial board Buying cars with energy-intensive Bitcoin contravenes Tesla's green mission. — Liam Denning The U.S. will experience rising inflation in the next few months. Expect higher market volatility and political gridlock. — Mohamed A. El-Erian Symbolic sanctions won't hurt Beijing. The EU can use sticks and stones by reconsidering its investment deal with China. — Andreas Kluth Spain avoided a lockdown and kept bars and restaurants open. That policy is about to face its biggest test. — Lionel Laurent India's Tata Group won a court battle with its disgruntled minority shareholder, but the divorce could get messy. — Andy Mukherjee The Iran-China "comprehensive strategic agreement" is long on promise and short on specifics. — Bobby Ghosh The Suez Canal crisis may have risen from bad weather, but it sends a geostrategic warning about the potential for political sabotage. — John Bolton ICYMIClogged canal update: They've finally pried the big boat loose in the Suez ... … but it may take months to untangle the shipping knots. Saudi Arabia has spent $1.5 billion in "sportswashing" its reputation. A helicopter crash in Alaska killed a Czech billionaire. KickersCoffee before exercise can speed up the rate of fat burning. (h/t Ellen Kominers) How not to translate Amanda Gorman's inaugural poem. Phew! A 340-meter asteroid will not be hitting Earth for at least 100 years. Notes: Please send pork chops or meatless burgers to Bobby Ghosh at aghosh73@bloomberg.net. Sign up here and follow us on Twitter and Facebook. | 
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