This is what it feels like in the economy lately as we transition into a new financial reality. However, this cycle is over 40 years old and there aren't many folks working and running businesses right now who have experienced things like raging inflation and supply chain disruptions.
For the last year I've been watching us lurch from bad to better to worse and then back again! Every piece of good news that we hear is always followed shortly thereafter but something way worse, the transient inflation is here to stay as I and many others predicted!
Home sales are plummeting as buyers step back and re-group:
"The collapse in mortgage applications in October is an indication of where closed home sales will be, and when we’ll get this data in November and December, it’s going to be gruesome.
About ten days ago, the National Association of Realtors released the data for home sales that closed in September. And these closed sales in September plunged by 24% from a year ago and by 30% from October two years ago."
Meanwhile, according to the Fed, we need to keep rising interest rates to fight the inflation THEY CREATED. Yes, really.
“It’s unclear what all this tightening will do to the economy. The housing market is already starting to show some signs of strain. Bond yields have spiked due to the Fed. And mortgage rates, which tend to move in tandem with the benchmark 10-year Treasury, have skyrocketed this year as a result.
There is also a growing chorus of lawmakers on Capitol Hill who are warning Fed Chair Jerome Powell and other Fed members to slow down the rate hikes because they fear even tighter monetary policy will lead to a recession.” - CNN
Tomorrow many of you will vote for state and Federal offices - I heartily recommend that you choose candidates who have experience running a small business and those who openly and frequently advocate for the interests of small business owners.
"Good small business policy starts with electing good small business candidates. NFIB’s political team is constantly monitoring and engaging with campaigns across the country to help elect those who will be the best advocates for our members. Be sure to check this page frequently for updates on the latest election news and resources you need to be the voice of small business."
Here is a tool to help find NFIB endorsed candidates in your area who have been vetted and confirmed to support small business owners.