Economy
- Economics is the way money affects the functioning of a project or plan
- Since we do not have a crystal ball, it is impossible to accurately predict the future!
- This is especially true, when, it concerns economic issues, including investment, real estate, interest rates, inflationary pressures, government actions, international factors, etc.
- What are the repercussions of inflation, recession, interest rates, Fed decisions, etc? How can one, hedge the BET, to minimize unnecessary risk, while receiving a quality return, also? There is no simple answer because many factors have significant effects.
- With, this in mind, this article will attempt to briefly, consider, examine and review possible factors, to help readers have a more complete understanding of the possibilities.
- interest rates: we have seen a long period of historically low-interest rates.
- This has created easy money because the cost of borrowing is very low.
- Both individuals and businesses have benefited, at least, in the near term, allowing home buyers to buy more homes, because their monthly fees are low, due to lower mortgage rates.
- Corporate bonds, governments, and banks paid low yields.
- It stopped inflation, created a rise in housing prices, which we have not seen, in recent memory.
- The Fed has indicated that it will end this support, and will also raise interest rates, perhaps three times, in 2022.
- What do you think that will cause.
- auto loans, consumer loans, and borrowing: the automotive industry has been greatly affected by supply chain challenges.
- When interest rates rise, car loans and leases will be more expensive.
- this pattern began after the tax reform legislation, passed at the end of 2017, which created the initial and New trillion-dollar deficit
- government spending, caused by suffering and financial challenges, due to lockdown, etc.
- due to the pandemic, has increased trillions of debt.
- Unfortunately, debts must eventually be addressed.
- perception and attitude: in the past two years, apparently, public perception has created, in addition to many concerns, a crippling economic impact.
- Whether, we begin to plan, effectively, and with common sense and an open mind, a lot will be at risk. Wake up, America, and demand better leadership, service, and representation.