Finimize - 🚀 SpaceX's big deal

What’s going on here?

SpaceX is reportedly gearing up for an insider share sale that could potentially fire Elon Musk’s rocket-and-satellite firm to a low-Earth-orbit $350 billion valuation.

What does this mean?

That valuation would be a major liftoff from last month’s rumored $255 billion. In fact, at $350 billion, SpaceX would officially reign as the priciest private startup on this planet. The insider share sale would give employees and early investors a chance to cash in their stakes at that lofty level, even while the company stays private. And SpaceX’s sky-high valuation just may be written in the stars: the firm is about to make history with orbital flights from its Starship rocket. That project is about more than just space exploration too: it’s about slashing launch costs – again. They’ve already plummeted about 90% from the NASA shuttle days, but this rocket could make launches up to 99% cheaper. See, SpaceX isn’t just aiming for space: it’s rewriting the playbook on how humans get there.

Why should I care?

For markets: To infinity… and beyond.

Getting off the planet is more accessible and profitable than ever, with costs falling and launches rising at a blistering 50% annual pace. Cheaper launches and improvements in high-tech satellites are driving advances in internet access, navigation, weather forecasting, and tools to combat climate change. It’s no wonder the World Economic Forum expects the space economy to hit a massive $1.8 trillion by 2035 – three times what it was last year. If that happens, it would mark an annual growth rate of 9% – more than triple the growth expected for the global economy. Space isn’t some niche enterprise: it’s a key player in tech, defense, and loads of other industries.

What’s going on here?

US consumers have found it harder and harder to get loans – and that could have dire economic consequences.

What does this mean?

According to a recent survey from the Federal Reserve Bank of New York, lenders have knocked back the highest proportion of credit card, car loans, and mortgage applicants in a decade. Over one in five Americans looking to borrow or refinance were turned away this year – well above pre-pandemic levels. Naturally, customers with lower credit scores had it even worse. But, across the board, almost half of the people looking for a credit card limit increase were told no – the most since the records began. And once bitten, those folks have proved twice shy. They’ve taken the hint from lenders: with fewer and fewer of them saying they’ll apply for loans in the future.

Why should I care?

Zooming in: A canary in the coal mine.

Missing out on a few extra dollars for the holidays might mean tightening your belt, but not being able to refinance a mortgage or get a car loan can cause much bigger problems. After all, without the ability to manage what you owe, it’s harder to budget – and that makes missed payments more likely. And if you can’t borrow to get a car, you might be unable to work and earn. If that happens to enough people all at once, it could spiral into a financial and economic crisis.

Zooming out: The haves and the have-nots.

As borrowing becomes more difficult, the disparity between the wealthy and everyone else could worsen. And folks with lower credit scores are already facing bigger financial hurdles. Just look at any crisis, whether the Great Recession or the pandemic: economic support benefits asset owners more, widening the gap between the rich and poor. And, as history shows, that space in between is where societal tensions tend to brew and geopolitical aggressions take hold.