💦 Planning to float around in your pool this summer? A shortage of chlorine tablets threatens to make that difficult trib.al/UjeOUhg
The chlorine squeeze is especially acute because Americans are more pool-happy than ever:
➡️ Demand for pool upgrades and new construction skyrocketed during the Covid-19 pandemic
➡️ Pool owners who didn’t do any extra work started using their pools more trib.al/UjeOUhg
The chlorine market likely would have been able to keep up were it not for a fire at a BioLab chemical plant last year.
The damage took out a facility responsible for a significant portion of the popular chlorine tablets produced for the U.S. market trib.al/UjeOUhg
About two-thirds of the 5.2 million residential in-ground pools in the U.S. use traditional chlorine systems. The chlorine shortage will affect the vast majority of pool owners.
The crunch in chlorine tablets is a microcosm of the broader vulnerabilities in supply chains. Almost any disruption that could happen has happened in the last year and a half:
🌍A global pandemic
📊Volatile swings in demand
👩🏾🏭Shortages of workers trib.al/UjeOUhg
Thankfully, there are alternatives to chlorine tablets:
💧Granulated or liquid forms of chlorine
💧Equipment that generates chlorine from salt via electrolysis
💧Ultraviolet light or ozone-based sanitizing technology trib.al/UjeOUhg
🧂 Salt systems can corrode stones without proper setup, and a salt-chlorine generator entails more upfront expenses compared to chlorine tablets.
Convincing consumers to make the initial investment may depend on how long chlorine supplies remain tight trib.al/UjeOUhg
The BioLab plant is expected to come back online by the spring of 2022.
But the supply-demand equation may remain lopsided through next summer and that prices will stay elevated trib.al/UjeOUhg
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$700 billion is about nine times current US customs revenue, and 2.4% of the most recent estimate of US GDP.
Tariff revenue hasn’t surpassed 2% of GDP since the early 1870s, and hasn’t surpassed it on a sustained basis since the 1820s and 1830s
Trump often cites President McKinley’s high tariffs as an inspiration, but during McKinley’s presidency (1897 to 1901) tariffs generated less than half the share of GDP that $700 billion would amount to now
We *just* learned that #SVB’s downfall was announcing it was raising equity without having buyers lined up, says @matt_levine.
So why would Credit Suisse’s biggest shareholder announce they would “absolutely not” put more money into the embattled bank? trib.al/aS9oy3I
After Saudi National Bank ruled out providing more assistance, #CreditSuisse closed down 24% at 1.697 Swiss francs per share, its lowest closing price on record trib.al/nnFD2F8