Finding someone who can explain US economics in such a clear, concise and comprehensible way is truly amazing. I needed this explanation in the worst way. Thank you. Experts in the field often fail to explain in ways that a novice can understand. Outstanding job.
I think if the fed lowers rates we are in for a sh*t show as there is already so much wealth inequality. The top will spend a lot and drive up prices even more, causing the vast majority of us to lose buying power. For example, right now, before any rate changes..housing in my neighborhood has almost doubled in 6 years. It just seems like a perfect storm of not good. There are no affordable homes being built because the middle market isn't strong enough to support it.
We are seeing a record number of homes in our suburban town listed as for rent instead of being sold. This is very unusual for this area that has always been very desirable for middle class young families to buy into but I think the combo of crazy real estate inflation since 2020 and current interest rates has made it impossible for the previous demographic that used to flock here to buy in. This is causing huge decreases in school enrollment at the elementary level and the district to close elementary schools. Everything seems so precarious right now in our little bubble that has enjoyed relative stability for the past 30 years 🙁
Thank you for sharing. Right now the US home market is missing/very short on first time home buyers and is underwater on homes for sale versus buyers. But keep in mind, the fertility rate in the US fell after the 2007-2009 recession and hasn't recovered. There's lots of pressures on public schools right now.
Finding someone who can explain US economics in such a clear, concise and comprehensible way is truly amazing. I needed this explanation in the worst way. Thank you. Experts in the field often fail to explain in ways that a novice can understand. Outstanding job.
Also I quoted this comment when I shared it on socials, I hope that's okay! Just felt so proud reading it.
Wow thank you so much! Means a lot.
You are so good at this kind of explainer-without-dumbing-down!
Just a query from my inner editor. A couple of times you say you cannot understate such and such. I think it should be “overstate”.
HA! You can tell when my writing doesn't have an editor, and that I am the queen of malapropism--if that's what this is? I can go back and fix.
I think if the fed lowers rates we are in for a sh*t show as there is already so much wealth inequality. The top will spend a lot and drive up prices even more, causing the vast majority of us to lose buying power. For example, right now, before any rate changes..housing in my neighborhood has almost doubled in 6 years. It just seems like a perfect storm of not good. There are no affordable homes being built because the middle market isn't strong enough to support it.
In my next post I'll talk about why the middle is being hit hardest on so many fronts. Doubling in 6 years is crazy!
We are seeing a record number of homes in our suburban town listed as for rent instead of being sold. This is very unusual for this area that has always been very desirable for middle class young families to buy into but I think the combo of crazy real estate inflation since 2020 and current interest rates has made it impossible for the previous demographic that used to flock here to buy in. This is causing huge decreases in school enrollment at the elementary level and the district to close elementary schools. Everything seems so precarious right now in our little bubble that has enjoyed relative stability for the past 30 years 🙁
Thank you for sharing. Right now the US home market is missing/very short on first time home buyers and is underwater on homes for sale versus buyers. But keep in mind, the fertility rate in the US fell after the 2007-2009 recession and hasn't recovered. There's lots of pressures on public schools right now.
One word to describe this writing by my favorite Economics PhD---Masterful!
Thank you so much!
Kathryn, your explanations are the best for people who truly want to understand. Sharing widely.