Varying Interest

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All interest rate increases aren’t created equal. A rise in 10-year treasury rates from 2%, where they are now, to 3% or 4% is a sign of improving business conditions and opportunities resulting from a strengthening economy. By contrast, a rise in rates from, say, 5% to 7% or 8% is a sign of an…

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Countercyclical Measures

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Including the stimulus, tax cuts, bailouts, home and car subsidies and automatic stabilizers (i.e. unemployment insurance and food stamps) the Great Recession will add about $4.2 trillion to the federal debt by the time it ends. The largest contributor; automatic stabilizers. They kick in when the economy slows. These stabilizers will add about $1.9 trillion…

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