What Will Happen to the Economy Next?

 

 

We can’t forecast the future accurately since we don’t have a crystal ball! This is particularly true when it comes to economic concerns such as investment, real estate, interest rates, inflationary pressures, government acts, foreign variables, and so on. What are the consequences of inflation, recession, interest rates, Federal Reserve Bank actions, and other factors? How may one hedge his wager in order to reduce excessive risks while simultaneously earning a good return? Because so many elements have major influences, there is no straightforward answer. With that in mind, this essay will aim to evaluate, examine, and review probable issues briefly in order to provide readers with a more comprehensive grasp of the possibilities.

 

 

 

1) Interest rates: We have been experiencing historically low interest rates for an extended period of time. Because the cost of borrowing is so low, this has resulted in easy money. Individuals and corporations have both profited, at least in the short term, by allowing home buyers to buy more homes because their monthly payments are low due to low mortgage rates. Corporate and government bonds, as well as banks, have provided poor returns. It has slowed inflation and caused a spike in property prices that we haven’t seen in recent memory. The Federal Reserve Bank has indicated that it will stop its support and raise interest rates, most likely three times, in 2022. What do you believe that will result in?

 

 

 

 

 

 

 

2) Auto loans, consumer loans, borrowing: The auto industry has been, significantly, impacted by supply chain challenges. When rates rise, auto loans and leases, will be more costly.

 

3) THis pattern began after the Tax Reform legislation, passed at the end of 2017, which created the initial, new, trillion dollars deficits

 

4) Government spending, caused by the financial suffering and challenges, because of shut downs, etc, because of the pandemic, created trillions more in debt. Unfortunately, debt must be eventually addressed.

 

5) Perception and attitude: The past couple of years,apparently, created a public perception, plus many fears, with a crippling economic impact.

 

Either, we begin to plan, effectively, and with common sense and an open – mind, many will be at – risk. Wake up, America, and demand better leadership, service

and representation.