The Money Farm Team

What Percentage Of GDP Is Real Estate?

The aggregate contribution of housing to GDP is typically 15-18%, and it occurs in two ways: Residential investment (approximately 3-5 percent of GDP), which comprises new single-family and multifamily constructions, residential remodeling, prefabricated home production, and brokerage fees. Renters’ gross rents and utilities, as well as owners’ imputed rents and utility payments, account for around […]

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Why Is Double Digit Inflation Bad For An Economy?

Financial survival is extremely challenging because inflation fevers are punctuated with recession cold. Some industries may succumb to inflation, while others may have recessionary signs. The simple pattern of earlier moderate inflation, which tends to generate economic booms followed by times of recession, does not apply to rampant two-digit inflation. Instead, it creates such severe

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What Happens To Municipal Bonds In A Recession?

During recessions, the principal risk faced by corporate bonds is credit risk. Due to the current economic climate, some businesses may be forced to close their doors, and bondholders may lose their principal investment. During recessions, however, interest rate risk is less likely to endanger corporate bonds. During recessions, interest rates are normally low, thus

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