Women deserve credit

Summary

Marketplace: Women Deserve Credit
Episode Release Date: October 21, 2024
Host: Kristen Schwab

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1. Corporate Earnings and the Impact of the US Dollar

The episode begins with a comprehensive overview of the bustling corporate earnings calendar. Major players such as 3M, Coca-Cola, Tesla, IBM, and approximately 1,600 other companies are slated to report their latest quarterly performances. A central theme in these earnings reports is consumer spending behavior and the fluctuating value of the US Dollar.

📌 Justin Ho discusses the significance of the dollar's strength:

“Companies care about the dollar's value because when it rises, it affects their sales overseas. Ultimately, a strong dollar makes that weak in terms of revenue.”
[01:06]

Dan Ives from Wedbush Securities adds:

“With all of that, we have…”
[01:56]

As interest rates have begun to decline, the dollar's value has started to stabilize, providing companies with more predictable financial environments. Christopher Vecchio from Tasty Live explains:

“That probably means you're not going to see one currency, the dollar, otherwise gain too much ground versus its peers. Instead, Vecchio says the dollar's value will likely stabilize in the coming year.”
[02:39]

This stabilization offers companies the confidence to project their earnings with greater accuracy amidst economic uncertainties.

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2. Boeing's Ongoing Struggles Amidst Strikes and Safety Concerns

A significant focus is placed on Boeing, which is navigating a turbulent period marked by both labor strikes and safety issues. After a five-week strike, Boeing has tentatively agreed to a new contract with the International Association of Machinists and Aerospace Workers. The proposed terms include a 35% pay raise over four years, a one-time $7,000 ratification bonus, and increased retirement contributions. However, it falls short of reinstating pensions, a key demand from the workers. The contract's ratification vote coincides with the company's earnings report.

📌 Samantha Fields highlights the breadth of Boeing's challenges:

“It has been a rough year for Boeing. The first week of January, you might remember, a door plug blew out of an Alaska Airline 737 Max jet mid flight.”
[04:08]

Richard Abulafia from Aerodynamic Advisory succinctly describes Boeing's financial predicament:

“They've just got a real leaky sieve.”
[04:55]

The ongoing strike has reportedly cost Boeing at least a billion dollars, exacerbating the company's already precarious financial situation. This turmoil extends to Boeing’s suppliers, who have been severely impacted by halted productions and quality control issues.

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3. The Debate Over Tipped Minimum Wage in the United States

The conversation shifts to labor economics, specifically the federal minimum wage and its exceptions. The federal minimum wage stands at $7.25 per hour, with exceptions for workers in certain states and for employees who receive tips. In 37 states, the tipped minimum wage is below the federal standard, with 13 states adopting the minimum tip wage of $2.13 per hour.

📌 Sebastian Martinez Hickey from the Economic Policy Institute emphasizes the demographic impact:

“Tipped workers are disproportionately likely to be women and people of color.”
[07:00]

Current ballot initiatives in Arizona and Massachusetts seek to eliminate the tipped minimum wage, aiming to ensure workers receive fair compensation. Mike Watley of the National Restaurant Association argues against these changes, citing increased costs that could lead to higher prices for consumers and reduced job opportunities:

“The group argues that eliminating the tipped wage raises prices for patrons and increases labor costs for restaurant owners so that they have to cut hours and jobs.”
[08:07]

In Washington, D.C., since phasing out the tipped minimum wage in 2023, over 1,800 full-service restaurant employees have lost their jobs, contrasting with the addition of 300 jobs in quick-service restaurants. Advocates for maintaining the tipped wage fear that successful ballot initiatives could inspire similar actions in other states, potentially undermining efforts to improve wages for tipped workers nationwide.

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4. The Rise of Alaskan Wild Sockeye Salmon in US Markets

Shifting to the agricultural sector, the episode explores the growing demand for wild sockeye salmon from Alaska’s Bristol Bay. Traditionally exported to Japan, fishermen are now increasingly targeting the domestic US market, catering to landlocked food enthusiasts and local restaurants.

📌 Annalee Waterman narrates the journey of a salmon fishing family:

“Kirsten Sterling spends every summer fishing for salmon at the mouth of Bristol Bay in Alaska with her husband and two little kids...”
[10:58]

By selling directly to consumers, these businesses can offer high-quality, ruby-red salmon at more affordable prices, despite natural variability in production costs. Customers, such as Karlyn Hervig, appreciate the freshness and local sourcing:

“It's special to get Alaskan salmon from a local mountain west business.”
[12:26]

This direct-to-consumer model not only supports small producers but also ensures that communities with a strong agricultural focus can access fresh, sustainably sourced seafood.

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5. Women Deserve Credit: The Legacy and Ongoing Challenges of the Equal Credit Opportunity Act

The episode's titular segment delves into the Equal Credit Opportunity Act (ECOA) of 1974, a landmark law signed by President Gerald Ford aiming to eliminate gender-based discrimination in credit markets. The conversation highlights the historical barriers women faced in accessing credit and the law's transformative impact over the past five decades.

📌 Savannah Marr recounts personal stories of discrimination faced by women before ECOA:

“I was told I would have to complete an application in my husband's name. It didn't matter that he hadn't worked during our marriage.”
[17:22]

Chloe Thurston, a political science professor at Northwestern, illustrates the pervasive nature of discrimination:

“These stories made their way into the press and helped make the case for the Equal Credit Opportunity Act, or ECOA, which just 50 years ago made it illegal for creditors to discriminate on the basis of sex or marital status...”
[18:44]

Greta Krippner, a sociologist at the University of Michigan, comments on ECOA's broader social impact:

“Economic independence for women is a bedrock for every other form of human flourishing.”
[19:12]

Despite ECOA's achievements, challenges persist. Jennifer Chen from Consumer Reports highlights that modern credit scoring systems still harbor biases rooted in historical practices like redlining. Additionally, emerging technologies, such as AI in financial services, pose new threats of subtle discrimination that current laws do not adequately address.

“There's already evidence of AI amplifying human bias in the financial sector.”
[20:23]

Chloe Thurston underscores the importance of updating legislations like ECOA to counteract these new forms of discrimination.

“In the ideal world, these laws would be updated to also address the negative impact of discrimination in lending.”
[20:36]

The segment concludes by reflecting on ECOA’s enduring legacy and the necessity for continual vigilance to ensure equitable access to credit for all women.

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6. The Charm of Custom-Designed Storybook Houses

Exploring the housing market, the episode showcases the enduring appeal of storybook-style cottages. Approximately 18% of homes built last year were custom-designed, often featuring whimsical elements like swooping roofs and stained glass, reminiscent of historical European cottages.

📌 Annalee Waterman provides historical context:

“The earliest storybook style cottage that is considered kind of the start of the movement is Marie Antoinette's Petit Trianon on Versailles…”
[21:56]

The movement gained significant traction in the early 20th century, influenced by returning World War II veterans and the burgeoning film industry. Neighborhoods like Carmel by the Sea exemplify this architectural style, blending nostalgia and whimsy with modern living.

While aesthetically pleasing, these custom homes are often more expensive to build due to unique materials and designs. Nonetheless, their popularity persists among those who cherish individuality and historical charm in their living spaces.

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7. Closing Market Updates

The episode wraps up with a brief overview of current market trends:

• Dow Jones Industrial Average: Dropped 344 points (-8.10%), closing at 42,931.
• Nasdaq: Increased 50 points (+3.10%), ending at 18,540.
• S&P 500: Fell 10 points (-2.10%), closing at 58,530.
• Gold: Reached a record high of $2,723 per ounce.
• Walt Disney Company: Announced plans to hire a new CEO in early 2026, leading to a 7.10% drop in its stock.
• Bond Market: Yields on the 10-year Treasury note rose to 4.19%.

These updates provide listeners with a snapshot of the current economic landscape, highlighting the volatility and interconnectedness of global financial markets.

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Conclusion

"Women Deserve Credit" navigates a diverse array of economic topics, from corporate earnings and labor disputes to the pivotal role of legislation in shaping women's financial independence. Through insightful interviews and expert analyses, Marketplace delivers a nuanced exploration of how these issues interweave with broader economic trends and societal changes. Notably, the discussion on the Equal Credit Opportunity Act underscores the ongoing journey toward gender equity in financial markets, emphasizing both historic progress and contemporary challenges.

Listeners gain a well-rounded understanding of the complexities in today's economic environment, making the episode both informative and relevant for those seeking to comprehend the forces shaping their personal and professional lives.

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For more information and to listen to the full episode, visit Marketplace.

Transcript

[Kristen Schwab]

We'll talk about earnings, we'll talk about access to credit, and we'll talk about cute storybook cottages. From American Public Media, this is Marketplace in New York. I'm Kristen Schwab in for kyrizdahl. It's Monday, October 21st. Thanks for joining. This week's corporate earnings calendar is very full. We'll hear from 3M, Coca Cola, Tesla, IBM and some 1600 other companies on how they did in the most recent quarter. There's always a consumer focus in these reports. Analysts will be listening for whether people are still spending. But another theme that's likely to come up is the value of the US Dollar and how that impacts companies profits. For some foreshadowing last week, Procter and Gamble said it's more optimistic about foreign exchange than it was earlier in the year. And as Marketplaces Justin Ho reports, the dollar's value could help out a lot of companies in the near future.

[Justin Ho]

Companies care about the dollar's value because when it rises, it affects their sales overseas. Ultimately, a strong dollar makes that weak in terms of revenue. That's Dan Ives, managing director with Wedbush Securities. He says those companies have to bring that revenue back home. And if the dollar is strong, those foreign sales just don't go as far back in the U.S. that's something that ultimately becomes a headwind for companies with a stronger dollar. The dollar's value shot up back when the Federal Reserve started raising interest rates in 2022. Back then, the US economy was hot and foreign investors were piling in the government bonds, which you need dollars to buy. But Nick Bannenbrook, international economist with Wells Fargo, says now we're seeing somewhat slower.

[Nick Bannenbrook]

Job growth, somewhat slower economic growth, and the US Interest rates have started to come down.

[Dan Ives]

So with all of that, we have.

[Nick Bannenbrook]

Started to see a gradual decline in the US Dollar.

[Justin Ho]

At this point, that doesn't necessarily mean that the dollar's value will plummet. Christopher Vecchio, head of futures and FX with the research company Tasty Live, says remember, the Federal Reserve isn't the only central bank cutting rates. There's the European Central bank, the bank of England, bank of Canada, the Heart Rate Reserve bank of New Zealand, all moving in lockstep of the Federal Reserve that has begun its rate cut cycle. That probably means you're not going to see one currency, the dollar, otherwise gain too much ground versus its peers. Instead, Vecchio says the dollar's value will likely stabilize in the coming year, which can give companies a better sense of what to expect. Having the confidence in where exchange rates are going allows a company to project.

[Kristen Schwab]

Its earnings a little bit more confidently.

[Sebastian Martinez Hickey]

Into the near term future.

[Justin Ho]

And at a time when the economy can feel uncertain, having that confidence can be pretty helpful. I'm Justin Ho for Marketplace.

[Kristen Schwab]

Wall Street Today couldn't agree on what the earnings week will look like. We'll have the details when we do the number. There's a lot of fodder for company stories during a week when so many companies are reporting earnings, but it was easy to pick this one out of the mix. Boeing, it reports on Wednesday and there is a lot going on for the company right now. Some of its workers have been on strike for five weeks and just this weekend Boeing reached a tentative deal with the International association of Machinists and Aerospace Workers. The proposed contract includes a 35% pay raise over the next four years, a one time $7,000 ratification bonus and higher retirement contributions. It does not bring back pensions, which workers wanted. The vote is set for Wednesday earnings day. And all of this is against the backdrop of safety problems at Boeing. Marketplace's Samantha Fields has more.

[Samantha Fields]

It has been a rough year for Boeing. The first week of January, you might remember, a door plug blew out of an Alaska Airline 737 Max jet mid flight. Not exactly an auspicious start to a new year. Magna Maharishi, airline reporter at Skift, says things haven't really improved since.

[Kristen Schwab]

Boeing has had a ton of other issues with all of its aircraft programs.

[Samantha Fields]

With production and quality control, delivery delays, federal scrutiny, so many issues that were.

[Kristen Schwab]

Have been causing it to lose money. And I think the strike has just magnified all the other issues at Boeing.

[Samantha Fields]

Going into the strike. Mike Dunlop, an aviation analyst, says Boeing was already in a bad financial spot. It hasn't turned a profit since 2018.

[Richard Abulafia]

They've just got a real leaky sieve.

[Kristen Schwab]

The company's in very, very difficult financial.

[Samantha Fields]

State right now and the strike has now cost it at least a billion dollars, according to one estimate, maybe more. Richard Abulafia at Aerodynamic Advisory says it's not just costing Boeing.

[Kristen Schwab]

It's been devastating, particularly to the suppliers that have been well beaten up badly over recent years.

[Samantha Fields]

Between Boeing halting production of the Max jet and Covid related shutdowns and supply chain issues.

[Kristen Schwab]

And just when the great cash machine.

[Nick Bannenbrook]

That is 737 production and other production.

[Kristen Schwab]

Got going, all of a sudden this happens and further derails things. So it's been very damaging if workers.

[Samantha Fields]

In the machinist union vote to ratify the new contract and the strike ends after these five or so weeks. Abulafia says Boeing should have a chance to recover, but if not, they just.

[Kristen Schwab]

Continue to lose money. And that just gets more and more.

[Samantha Fields]

Damaging, especially for a company that is already in a precarious financial position. I'm Samantha Fields for Marketplace.

[Kristen Schwab]

The federal minimum wage wage in the United States is $7.25 an hour, with two exceptions. The first is for workers in D.C. or any of the 30 states that have set a higher minimum wage. The second is for employees who work for tips. In 37 states, the tipped minimum wage is below seven and a quarter an hour. In 13 of them, it's $2.13. But there's been a lot of buzz lately about changing that. Voters in Arizona and Massachusetts will be deciding on ballot initiatives that could either enshrine or eliminate the tipped minimum wage. Marketplace's Kimberly Adams reports.

[Sebastian Martinez Hickey]

Federal law and the law in many states allow certain workers to be paid below the minimum wage because they earn tips.

[Justin Ho]

Employers are legally required to ensure that tipped workers tips cover the gap between the tip minimum wage and the regular minimum wage, but in practice this is highly difficult to enforce.

[Sebastian Martinez Hickey]

Sebastian Martinez Hickey is a state economic analyst at the Economic Policy Institute. He says tipped workers are disproportionately likely to be women and people of color.

[Justin Ho]

Tipped workers are very low paid workers. They earn about a third less than the median worker in the US economy, and they experience poverty at much greater rates than the typical worker.

[Sebastian Martinez Hickey]

In a handful of states, plus Chicago and the District of Columbia, voters have decided in recent years to phase out the tipped minimum wage. The restaurant industry has vigorously opposed those moves and has been fighting further efforts to get rid of it. Mike Watley is vice president of state affairs and grassroots advocacy at the National Restaurant association, which has pushed back against efforts to eliminate the differential in 13 states and three localities.

[Kristen Schwab]

And so in all 13 of those states that legislation and those three localities.

[Justin Ho]

Failed to move forward.

[Sebastian Martinez Hickey]

The group argues that eliminating the tipped wage raises prices for patrons and increases labor costs for restaurant owners so that they have to cut hours and jobs. Whatley points to jobs data revealing changes in Washington, D.C. 's restaurant industry since it began rolling back the tipped minimum wage in 2023.

[Justin Ho]

Since that initiative began phasing in last May, over 1800 full service restaurant employees have lost their jobs in D.C. while at the same time quick service restaurants.

[Kristen Schwab]

Have actually added 300 jobs.

[Sebastian Martinez Hickey]

But neither the National Restaurant association nor a local D.C. restaurant group could find a restaurant to publicly acknowledge that they had to cut jobs because of the change. Supporters of Eliminating the tipped wage in D.C. argue it's not clear job losses are because of the wage increase or other industry trends. Meanwhile, this year there's a ballot initiative to phase out the tipped wage in Massachusetts.

[Kristen Schwab]

The proposal that's on the ballot is.

[Annalee Waterman]

To raise that base wage rate from.

[Kristen Schwab]

675 up to the full Massachusetts minimum wage of $15 an hour. And it's proposing to do that over five years.

[Sebastian Martinez Hickey]

Jeanette Wicks Lim is a research professor at the University of Massachusetts Amherst, and she and a colleague crunched the numbers on what the impact would be in the state.

[Richard Abulafia]

The cost increase to bars and restaurants.

[Kristen Schwab]

Would be something on the order of about 1% of their sales revenue.

[Sebastian Martinez Hickey]

So pretty modest cost increase in Arizona. On the other hand, a proposal on November's ballot would do the opposite and preserve the tipped minimum wage. Advocates trying to get rid of the differential are worried if a move like this passes, it could be replicated in other states to quash efforts to boost wages for tipped workers. So a group called Raise the Wage Arizona and others are spending millions of dollars to try to defeat it. In Washington, I'm Kimberly Adams for Marketplace.

[Kristen Schwab]

If you've had any wild sockeye salmon recently, there's a growing chance that it came from Alaska. Bristol Bay is home to the largest wild sockeye salmon run in the world. Historically, almost all of its commercial fishing catch was exported to Japan. But now some fishermen and companies are focused on markets in the US and landlocked foodies here in the lower 48. They're buying hundreds of thousands of pounds of salmon from Alaska. The Mountain West News Bureau's Hannah Merzbach has more.

[Annalee Waterman]

Kirsten Sterling spends every summer fishing for salmon at the mouth of Bristol Bay in Alaska with her husband and two little kids. They're nine and five, but they've been going out on fishing boats since before they could walk. They're kind of wild feral children running around. The fish they catch is barged and trucked to Salt Lake City, where the family spends the rest of the year hiking, skiing, and delivering sockeye salmon direct to customers or restaurants.

[Nick Bannenbrook]

We all started out with this because.

[Annalee Waterman]

It was like, oh, you're a fisherman.

[Nick Bannenbrook]

In Alaska, so how do we get fish?

[Annalee Waterman]

Sterling is a bit of a wild salmon evangelist. If you're an expecting mother, this is like the most perfect food for you ever. If you are a little baby, this is the most perfect food for you ever. If you're a dog, this is the most perfect food for you ever. But she says you pay more for her sockeye, which Is ruby red from eating plankton and krill in the open Ocean. It's about $16 a pound, nearly twice as much as the farm raised grocery stuff. But buying salmon in bulk through these direct to consumer fish businesses can cut down on costs for customers. In teton valley, Idaho, dozens of customers are doing just that. They're lined up in a parking lot to pick up 10, 20 and 40 pound boxes of filets and ground sockeye.

[Kristen Schwab]

This is it right here. So see, it just looks so beautiful.

[Annalee Waterman]

Karlyn hervig unwraps the paper around a vacuum sealed bag of ground sockeye. She's also getting a box of filets to serve at dinner parties.

[Kristen Schwab]

As you see, it's a pretty big piece. So once you're gonna thaw one out, you kind of want to know, okay, I'm having friends over or I can serve this many portions.

[Annalee Waterman]

Amanda lachesky with key jack fish company is handing out today's fish. I think the first year we delivered seven boxes and we thought that was a huge deal. Now it's grown into what, 70 people or 3,600 pounds of salmon. She processed it all in bristol bay, then shipped it by barge to Seattle and trucked it 700 miles to where she lives in Montana. From there, she loads all the salmon into a bright blue freezer cold trailer and once a year delivers it to rural communities like this. Many of our customers put in orders months in advance. They care about knowing where it comes from because the economy around here is focused around agriculture and food and just a desire to support small producers because a lot of them are small producers themselves. One customer, Kyle barras, works at a nearby ranch. He's cramming 15 boxes of salmon into his subaru outback, Some for him, some for neighbors. He says it's special to get alaskan salmon from a local mountain west business.

[Kristen Schwab]

I've come to just really like these guys, like supporting, yeah, small business and.

[Annalee Waterman]

Just like having a deer or elk in the freezer. Bear says he's excited to have all this wild salmon stored up for the long winter ahead. In driggs, Idaho, I'm Hannah merzbach for marketplace.

[Kristen Schwab]

Coming up, people just always have a.

[Richard Abulafia]

Longing, the past and nostalgia and whimsy.

[Kristen Schwab]

I mean, why else would cargo pants become cool again? But first, let's do the numbers. The dow Jones Industrial Average lost 344 points, 8 10% to finish at 42,931. The Nasdaq gained 50 points, 3 10% to close at 18,540 and the S&P 500 shed 10 points 2. 10% to end at 58. 53. Gold hit a record high of $2,723 per ounce earlier today. Today in some gold related stocks, Harmony Gold Mining Company shined up 2 and 2. 10%. Newmont Corporation lost almost 1. 10%. Barrick Gold Corporation lost 3. 10%. Disney announced it will hire a new CEO in early 2026 following the end of current CEO Bob Iger's contract. Walt Disney Company fell 7. 10%. Bonds fell. The yield on the 10 year T note rose to 4.19%. You're listening to Marketplace.

[Dan Ives]

You turn to Marketplace for up to the minute news for stories that show you the connections between global events and your personal economy. And you're not alone. Marketplace is the most widely consumed business and economic news program in the country. We're proud to make fact based journalism freely accessible and Marketplace investors make it all possible. Your year end donation today will make a real difference in our nonprofit newsroom and in the lives of millions of Marketplace listeners every single day. So please contribute what you can [e-mail] donate.

[Kristen Schwab]

This is Marketplace. I'm Kristen Schwab. Some of you listeners might be surprised by this next story. Some of you may have personally experienced it. Believe it or not, as recently as the 1970s, it was perfectly legal for lenders to require a male co signer before extending credit to a woman. Also legal to disregard a woman's income on a mortgage application. Well, 50 years ago, President Gerald Ford signed off on the 1974 equal credit opportunity act, which guarantees women equal access to credit markets. Marketplace's Savannah Marr has more on the landmark law and its legacy.

[Nick Bannenbrook]

In the early 70s, feminist activists were trying to mobilize American women against sexism and lending. So they put out calls in a couple of popular women's magazines for testimonials like these.

[Richard Abulafia]

When I requested my name be changed on my credit card, I received a form letter stating that normal procedures are.

[Sebastian Martinez Hickey]

To complete an application in my husband's name. It didn't matter that he hadn't worked during our marriage. The card had to be in his name.

[Kristen Schwab]

I was told I would have to.

[Nick Bannenbrook]

Show written proof from a doctor that.

[Sebastian Martinez Hickey]

I was on birth control pills to.

[Kristen Schwab]

The real estate agent before he would.

[Sebastian Martinez Hickey]

Show us any homes.

[Richard Abulafia]

It infuriates me that I can't get.

[Nick Bannenbrook]

Any action done unless a man represents me and my business interests. Those are a few excerpts that Chloe Thurston, a professor of political science at Northwestern, gathered for her book called at the Boundaries of Homeownership.

[Sebastian Martinez Hickey]

Hundreds of women ended up writing in to recount their own tales of being.

[Nick Bannenbrook]

Discriminated against, tales of banks refusing to extend married women credit in their own names, then erasing those women's credit histories if they happened to get divorced, and requiring what were known as baby letters before considering a woman's income to get a mortgage, which was basically a letter.

[Sebastian Martinez Hickey]

From your doctor saying that you were.

[Nick Bannenbrook]

On birth control as assurance you wouldn't leave your job to take care of a baby.

[Kristen Schwab]

You can just imagine the humiliation and.

[Sebastian Martinez Hickey]

A lot of women use that exact term of being sort of regarded as someone whose main purpose was to get pregnant and to raise kids and just not trusted as a financial operator.

[Nick Bannenbrook]

These stories made their way into the press and helped make the case for the Equal Credit opportunity Act, or ECOA, which just 50 years ago made it illegal for creditors to discriminate on the basis of sex or marital status and paved the way for American women to build their own economic footprint.

[Kristen Schwab]

Economic independence for women is a bedrock for every other form of human flourishing.

[Nick Bannenbrook]

Greta Krippner, a sociologist at the University of Michigan, says the ECOA gave women new choices, and not just on the lending market.

[Kristen Schwab]

Career choices, relationship choices, choices over, you know, parenting or not, you know, everything that determines a life.

[Nick Bannenbrook]

Another legacy of this law is that it forced lenders to find new systems of evaluating creditworthiness. Jennifer Chen with Consumer Reports Digital Marketplace Team says the ECOA pushed us more quickly toward modern credit scores, which in.

[Kristen Schwab]

Theory should be much more objective and unbiased.

[Nick Bannenbrook]

In reality, there's historic bias baked into credit scoring because of past redlining and discrimination, Chen says applicants of color can have thinner files and lower scores. And even though the ECOA has rooted out the most overt bias in lending.

[Kristen Schwab]

The remaining forms of discrimination show up in different ways and can be hard.

[Nick Bannenbrook]

To pinpoint, like marketing that covertly targets borrowers of color with predatory loans. And Chen says new threats to equal credit access are emerging.

[Kristen Schwab]

Algorithms can also discriminate.

[Nick Bannenbrook]

There's already evidence of AI amplifying human bias in the financial sector. Chen says the Equal Credit Opportunity act and other anti discrimination laws don't address that problem because they're decades old.

[Kristen Schwab]

In the ideal world, these laws would.

[Nick Bannenbrook]

Be updated, updated to also address the negative impact of discrimination in lending. Chloe Thurston at Northwestern says the days of women being openly locked out of credit markets feel impossibly distant.

[Sebastian Martinez Hickey]

In some ways, the legacy of the.

[Nick Bannenbrook]

Law is that we've forgotten, forgotten how pervasively lenders discriminated and how recently. I'm Savannah Marr for Marketplace Foreign.

[Kristen Schwab]

A lot of news about the housing market over the past few years has been kinda blah. With recently falling, but still relatively high mortgage rates and low housing supply. It's been hard out there for buyers. So let's take a minute to relish in some housing delight. According to data from the U.S. census Bureau's Survey of Construction, around 18% of homes built last year were custom designed. And custom houses, they often come with a vision, sometimes a vision fit for a storybook. Here's the latest installment in our series, Adventures in Housing History.

[Richard Abulafia]

My name is Annalee Waterman. I'm a residential and interior designer in Dallas, Texas. In storybook style houses, you're going to see quite a bit of variation. But if you're walking down the street and wondering if you're seeing a storybook house, you would look for characteristics such as maybe a swooping roof, exposed timber, stained glass, wrought iron. They're typically small cottage style houses. They're not going to be big mansions and they're going to have a nod to some sort of historical style. The earliest storybook style cottage that is considered kind of the start of the movement is Marie Antoinette's Petit Trianon on Versailles. It is lovely. It's a little exposed timber frame, French style cottage. And then it's got a like the big water wheel on the side and it's got a huge garden in the front. And so those were popular in the 16th, 17th, 18th century. And then in the early 20th century, soldiers coming home from World War II, they'd been in Europe, they'd seen the colloquial architecture, they'd seen thatched cottages and the castles and the cathedrals and all these things. And then simultaneously it was the explosion, explosion of the film industry. And of course Disney was a big part of that. So that's where the storybook style really started coming together in America. Harry Oliver, who is a prominent tower director at the time, he built what's considered the first storybook style house in the United States. It's called the Spineda House. It looks like a little witch's cottage you wouldn't believe. It's just right in the middle of la. You can just walk right by it. And then it just really took off from there. There's all sorts of neighborhoods sprung up. Probably one of the most famous neighborhoods is Carmel by the Sea. It's just a whole neighborhood of little cottages, but there's little neighborhoods like that scattered all over America. It would be definitely bucket list of mine to get to visit all of them in my lifetime. It would be so fun. I would love it to have a big full blown revival, but it's not the least expensive way to build. A lot of it is very unique and it's not materials that you can buy at Home Depot or things like that. But I think there's always going to be people that love it and that keep it alive. People just always have a longing for the past and nostalgia and whimsy, and I think that has a lot to do with it.

[Kristen Schwab]

That's Annalee Waterman, a residential designer in Dallas, Texas. Whether you're looking for your starter cottage or a forever gingerbread house, tell us about it at marketplace.org Adventures in Housing this final note on the Way out today saw this in the Wall Street Journal this year, restaurant chains and operators are on track to declare the most bankruptcies in decades. Aside from 2020, when the pandemic turned eating out upside down, there are a bunch of reasons people aren't dining out quite as much. Costs have risen for operators and private equity firms are less willing to back risky food and drink businesses. As these things go, smaller Companies, chains with 50 locations or less will have a harder time staying afloat. So will older sit down chains a la Red Lobster. Our daily production team includes Andy Corbin, Elise Hassan, Maria Hollenhorst, Sarah Leeson, Sean McHenry and Sophia Terencio. And I'm Kristen Schwab. We'll see you tomorrow. This is apm.

[Dan Ives]

You turn to Marketplace for up to the minute news for stories that show you the connections between global events and your personal economy. And you're not alone. Marketplace is the most widely consumed business and economic news program in the country. We're proud to make fact based journalism freely accessible and Marketplace investors make it all possible. Your year end donation today will make a real difference in our nonprofit newsroom and in the lives of millions of Marketplace listeners every single day. So please contribute what you can [e-mail] donate.