How does the first ever downgrade of Uncle Sam’s credit rating affect your interest rates…or does it? Inquiring minds want to know!
Since S&P conveniently issued the downgrade right in the middle of our August and the Economy series, we already had a lot to say on the topic. Of course, if you read our blogs and listen to our podcasts, you already know that.
And since we’ve already heard from big time fund managers and a couple of presidential candidates, we thought it would be “fun” to get an academic’s opinion. And to our delight, we actually found a fun academic to come on the show!
In the classroom for this episode of The Real Estate Guy™s radio show:
- Your academic host, Robert Helms
- You co-host and teacher’s aide, Russell Gray
- Your substitute teacher, Economics Professor from St. Lawrence University, Steve Horwitz
As real estate investors, we care about interest rates. And since interest rates are derived primarily from bond market dynamics (and, my oh my, haven’t the bond markets been dynamic the last few years!), it makes sense to pay attention to bonds. Just the thought it leaves us….well, bored would be an improvement. Hey, we just want to do deals. Who wants to wade into all this macro-economic mumbo jumbo?
Fortunately, Professor Horwitz is a fun, high energy and super smart guy. Plus, he’s an Austrian! (Strange. With a name like Horwitz, we wouldn’t have thought that.)
At any rate (get it?), Professor Horwitz provides us yet another important perspective on the ebb and flow of money through the bond markets – and gives us his take on the U.S. debt downgrade debate and what it means to real estate investors. So grab your notebook and Spider-Man lunch pail and let’s go to school!
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