The basic definition of an interest rate is simply the cost of borrowing money. It’s the cost associated with acquiring credit, whether buying a car, getting a mortgage, or taking a vacation. We encounter interest rates every time we make a monthly credit card or student loan payment. Interest and interest rates are a major part of daily life, yet many people don’t have a good understanding of the most critical types of interest or how their rates are set. Broadening our understanding even a little can help empower us to make more informed decisions, whether at the bank or at the ballot box.
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U.S. Interest Rate Trend & Its Implications
This article shows interest rate trends over the past 10 years, and the implications of increasingly hawkish monetary policy in today’s environment.
Read More »If You’re Interested In Gold Stocks This Article is a MUST Read (+4K Views)
Historically, junior mining stocks tend to fluctuate between extreme boom and bust cycles and, given that we just completed a major bust cycle, the setup for a major rally in gold stocks is right in front of us. Those with the courage to buy low, and the discipline to sell during a frenzy, could quite possibly realize 10-bagger or even 100-bagger returns that could be worth a million dollars or more. Hold on to your hat!
Read More »Rising Interests Are The Pin That Burst the Global Housing Bubble
Interest rates are rising to cool inflation and remove home buyer stimulus kicking off a global real estate correction.
Read More »The Prime Interest Rate: How It’s Set – and Affects You
The prime rate is the best interest rate that major banks extend to their borrowers with the best credit. Find out how the prime interest rate affects you.
Read More »Mortgage Interest Deductibility Should Be Eliminated! Here’s Why (+3K Views)
“Buy as much house as you can,” real estate agents urged clients. “The more you buy, the bigger your tax break” is their advice using the mortgage interest deduction (MID) to explicitly promote over-investment in housing. Unfortunately, such advice fueled the previous housing boom and exacerbated its bust and could do so again.
Read More »How Come the U.S. Gov’t Paid Less Interest Expense On $3T More Debt?
How did the U.S. Government get away with paying less interest expense on $3 trillion more debt?? Here's how.
Read More »What Are the Implications of Long-Term Rates Dropping To 0%?
Please take or leave what I am about to say as you like.
Read More »A Reminder Of What Usually Happens to Stocks When the Fed Raises Rates: Ouch! (+4K Views)
I know, I know, no one likes the bearer of bad news — especially when it comes to stock prices - but someone needs to remind you what usually happens to stocks when the Fed raises rates so it might as well be me. They drop. Let me explain.
Read More »Compound Interest Is Absolutely Critical To Growing Your Wealth – Here’s Why
Albert Einstein once said that compound interest is the eighth wonder of the world yet, sadly, many people do not fully understand the power behind it. If they did, they might make smarter financial choices and see their finances improve almost immediately. In this post, I’ll walk you through the basics of compound interest and show you why you need to start taking advantage of its amazing power.
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