Website design By BotEap.comSince we don’t have a crystal ball, it’s impossible to accurately predict the future! This is especially true when it comes to economic issues, including investments, real estate, interest rates, inflationary pressures, government actions, international factors, etc. What are the ramifications of inflation, recession, interest rates, Federal Reserve Bank decisions, etc.? How can you hedge your bet to minimize unnecessary risk while still receiving a quality return? There is no simple answer, because many factors have significant influences. With that in mind, this article will attempt to briefly consider, examine, and review the potential factors, to help readers gain a fuller understanding of the possibilities.

Website design By BotEap.com1) Interest Rates: We have experienced a prolonged period of historically low interest rates. This has created easy money, because the cost of borrowing is very low. Both individuals and corporations have benefited, at least in the short term, by allowing homebuyers to buy more homes because their monthly charges are low due to low mortgage rates. Corporate and government bonds, and banks, have paid low yields. It has curbed inflation and created an increase in home prices that we have not seen in recent times. The Federal Reserve Bank has signaled that it will end this support and also raise rates, probably three times, in 2022. What do you think will cause that?

Website design By BotEap.com2) Auto loans, consumer loans, loans – The auto industry has been significantly affected by supply chain challenges. When rates go up, car loans and leases will be more expensive.

Website design By BotEap.com3) This pattern began after the Tax Reform Law, passed at the end of 2017, which created the new initial deficits of trillions of dollars.

Website design By BotEap.com4) Government spending, caused by financial suffering and challenges, due to lockdowns etc, due to the pandemic, created trillions more in debt. Unfortunately, the debt must be addressed eventually.

Website design By BotEap.com5) Perception and attitude: Apparently, the last two years created a public perception, along with a lot of fear, with a crippling economic impact.

Website design By BotEap.comOr we start to plan, indeed, and with common sense and an open mind, many will be at risk. Wake up, America, and demand better leadership, service and representation.