Episode 22: Is the Economy on the Verge of a Major Shift?

Liquidity and credit are the next two big things to watch besides labor. If labor started to crack and the Fed is raising interest rates, maybe there's another 75 basis points for sure coming at the July meeting. And then there's another meeting by September. That is making credit more expensive.There's a difference between credit and cash. Cash on hand is cash. Credit is what banks are willing to offer and extend. And if there's less credit out there because it's more expensive or if more expensive credit causes consumers to buy less goods and services that will slow down the economy. We're also looking for cracks in the credit. Are there credit defaults? Are companies that have taken out credit like corporate bonds, high-yield bonds aka it used to be called junk bonds. Are they starting to default on their debt?Credit cracking can have ripple effects.Credit cracks are a little bit different than liquidity, so we're going to keep an eye on credit quality.Credit and mortgages are fantastic. The loans and the books have some of the best credit ever seen.The default rates are among the lowest in history and people are still gainfully employed.Stay up-to-date on all the latest news, updates, and exclusive content by following us on all of our social media accounts! https://linktr.ee/kptalksdollarsandsense#KPTalks