ZYTrade: Low rates supposed to entice borrowing and spending, according to Keynesians (most mainstream economists, in other words). Isn’t that why the Fed sets interest rates? Well, the mortgage industry numbers beg to differ. Mortgage rates are falling, but demand isn’t picking up. Coincidentally, money velocity–the speed by which your dollar exchanges hands in a flurry of purchases–is slowing too. Wait…how’s GDP supposed to ramp up enough to claim a “recovery’?

I never thought I would see this. 30Y fixed-rates for mortgages are crashing with crashing M2 Money velocity.

Screenshot-2020-10-14-at-11.17.33-AM-300x216 Money Velocity is Slowing...What Might That Mean for the Economy?

Powell’s face is the symbol of failure.

Screenshot-2020-10-14-at-11.17.41-AM-300x230 Money Velocity is Slowing...What Might That Mean for the Economy?

Originally posted on Confounded Interest

Trading futures, options on futures, and forex involves substantial risk of loss and is not suitable for all investors. The use of leverage is not suitable for all investors and losses exceeding your initial deposit is possible. Carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources and only risk capital should be used. Opinions, market data, and recommendations are subject to change at any time. The lower the margin used the higher the leverage and therefore increases your risk. Past performance is not necessarily indicative of future results.