In this week’s news, we see how the pandemic is creating difficulties for millennials, in particular. As always, we encourage you to remember that knowledge is power–with so many things out of control, this is a great time to learn all you can to improve your future.
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Making Sense Of It All
There’s been a dizzying amount of government intervention into the economy over the last few months. Once again, we return to Ray Dalio to explain what’s happening now in the greater context of the overall economic cycle. This is a long read, but he’s conveniently put the important points in bold if you want to get the idea of what he’s talking about without reading the whole thing (although it’s definitely worthwhile if you have the time and attention span for it). Here’s a taste:
If you haven’t yet, you should definitely check out our series The Best Video on How The Economic Machine and Cycles Work (parts one, two and three) for some background to understand the above article.
Big Business Bailout
And speaking of government intervention in the economy, the Washington Post reports a new program coming that will allow the central bank to spend as much as $500 billion to purchase bonds from big corporations. Critics of the plan complain that it doesn’t carry any restrictions on how businesses can use the money, unlike aid given to smaller businesses which requires them to use the money to save jobs.
Hard Times for Millennials
Many people have lost income, lost a job, or had their work hours reduced because of the pandemic. But this report shows that, worldwide, millennials have been hardest hit. With less savings, greater debt and higher expenses compared to previous generations, millennials and Gen Z are having a predictably hard time coping with the economic difficulties brought on by Covid-19.
More Buyers for New Homes
New home sales plunged with the rest of the economy earlier this spring, but sales are recovering, CNBC reports. A number of factors are at work here, including the fact that it’s easier to show a new, unoccupied home amid fears of disease, apartment dwellers looking for more space in case of further quarantines, and less concern about commuting as many people will continue to work from home at least part of the time.
Interest Rates Staying Low
If you’re one of those potential buyers for a new home, the good news is that interest rates, including mortgages, are probably going to stay low for a while. If your credit score is good, refinancing could also work out in your favor. And don’t forget, if you’re having trouble making payments because of the pandemic, you should ask your lender what your options are.
It’s Not Over Yet
As many cities start re-opening, don’t forget that washing your hands never goes out of style. Stay safe, and see you next week!