Global Changes that Impact You
Economic cycles are often like a ping-pong ball, they go in one direction and then the other. They are controlled by outside forces with differing objectives and they impact millions of people. That last point goes beyond the analogy, but the indication is the same. The housing market, the bond market, the stock market and currency prices all impact people around the world and right here in the U.S.
The reality of these economic cycles and large-scale forces can be experienced at a very personal level through the real estate and foreclosure crisis, gas prices, the economy and jobs, consumer price increases and the increased economic power in other countries. In the end, retirement account balances, college savings, discretionary spending and quality of life can be impacted by global forces and events as well as decisions made closer to home in state and federal legislatures.
The Year that Many would Like to Forget
2010 was a case in point. It was a year when the economic cycle in the U.S. included too much uncertainty for corporations. This stymied investment and hiring.
For much of the year, discretionary spending was down and people actually saved at a greater rate than in the past. Part of the change in spending behavior found its roots in economic uncertainty as well. Unemployment was both the result of uncertainty and the impetus for more responsible savings.
Foreclosure Rates are Part of the Reality
Continued high foreclosure rates impacted communities across the U.S. with great numbers of homeowners upside down in their mortgages. A precipitous drop in home values paired with unaffordable mortgage payments impacted mortgage holders from coast to coast.
What’s ahead in this new year? We will explore that question in the weeks and months to come. We will consider all of the markets including the stock market, bond market, housing market, world currency fluctuations and new legislation. Stick around and learn about the changes that affect us all.
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