And it just gets worse. Ask anyone how they feel about the economic future and it doesn't look good. People are worried about jobs and inflation and the national debt which is growing almost exponentially on a daily basis. In an economy reliant on consumer spending, worry doesn't bode well for anyone.
The truth is, there are things happening in our economy today that just 10 years ago my college textbooks said was impossible. For an example, we don't have to look any farther than the housing market.
Textbooks say that house prices and mortgage rates are two end of a teeter totter. When one goes up, the other goes down. When mortgage rates go down, house prices go up. When mortgage rates go up, house prices have to come down to compensate. It all made sense in the reality of 10 years ago.
Now you have today. Mortgage rates are lower than they have been in decades and house prices are too. How can both end of a teeter totter be down at the same time? The teeter totter is broken and both ends are on the ground. The economy is in the same shape.
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