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What Might Be Next In The Economy?


What Might Be Next In The Economy?


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.


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