What Might Be Next In The Economy?

Since, we don't have a crystal ball, it is impossible to predict, accurately, the future! This is

especially true, when, it comes to economic issues, including investment, 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 one, hedge - his - bet, in order to minimize unnecessary risks, while receiving a quality

return, also? There is no simple answer, because so many factors, have significant influences.

With, that in mind, this article will attempt to briefly, consider, examine and review potential

factors, in order to help readers, have a more - complete understanding of the possibilities.

1) Interest rates: We have experienced a prolonged period of historically - low - interest rates.

This has created easy money, because the cost of borrowing is so low. Both individuals and

corporations have benefited, at least, in the immediate- term, permitting home buyers to purchase

more house, because their monthly charges, are low, due to low mortgage rates. Corporate and

government bonds, and banks, have paid low returns. It has stemmed, inflation, and created a rise

in home prices, we haven't witnessed, in recent memory. The Federal Reserve Bank has signaled

they will be ending this propping - up, and will also raise rates, probably three times, in 2022.

What do you think that will cause.

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.