Rocket Fuel Newsletter – 02/19/22

close up of male hands with newspaper and coffee

The Rams got the job done last week, enjoyed a nice parade in LA, and now are back to work for the '22 season.

This week’s edition has cash-out, crosswords and purchase-market training.

Fuel Up! 🚀

Redfin takes a tailspin down 17%, expecting Q1 losses bigger than 2021 losses.

Their iBuying unit made $4 million in gross profits but spent the same in investment expenses.

Zillow announced their wind-down of iBuying 3 months ago and reported last week that they took an average loss of $28k per property for a total of $320 million so far.

Coke to the Moon?

One of Warren Buffet's favorite companies, Coca-Cola, launched a new special flavor called "Starlight."

Instead of "vanilla", "cherry" or "orange," this flavor is supposed to taste like outer space.

Using emotion is often more convincing than logic when selling.

Pay Down The Plastic

$10 trillion in homeowner equity
Credit card interest costs 16%+
Revolving debt returning to all-time highs

General Motors followed up last week's Rocket Fuel email with an ode to Dr. Evil on their headquarters on the Detroit River.

(In the background, you can see where the Canadian truckers shut down the border crossing.)

Perhaps GM is hoping that homeowners will use some of their $10 trillion of untapped, tappable equity to buy new electric cars.

This week's retail sales data showed people are still spending, with purchases up ~4% since December.

Even adjusted for inflation, consumer spending is up 15% since February of 2020.

A lot of the spending was helped by the stimulus checks and record savings levels, and as those fade, people are keeping their purchases on their plastic.

In fact, revolving debt levels are on the way back to the record highs we saw in December 2019.

Help your clients pay down their debts in the smartest and cheapest way possible, by consolidating their high-interest debt.

You can help pay America's credit card bill.

Here's another 20 bps off cash-out loans locked this month!