Understanding How the Economy Works

Buying a house is a major life purchase and, given the significance of this purchase, just the idea of buying a house may generate many questions and some anxiety. One factor you may consider when buying a house is the economy and how it affects your future. While no one can predict the future, understanding more about how the economy works may help reduce some anxiety by providing a larger context for the world around us.

The following 30-minute video explains how the economy works. It was produced by Ray Dalio, the founder of one of the world’s largest hedge funds. Ray is someone I follow, not simply because of his business success, but rather because of the thinking it is built upon. He strives to understand our economic and financial world and has a reputation as an out-of-the-box thinker that sees “what is” when others don’t. This thinking helped his firm predict the 2008 financial crisis, which allowed them to proactively manage a better outcome rather than be caught off-guard and be reactive like many of us. Regardless of your education level or familiarity with economics, I think you will find this Economics 101 video worth a watch…

Economics 101 — “How the Economic Machine Works.”
Created by Ray Dalio this simple but not simplistic and easy to follow 30 minute, animated video answers the question, “How does the economy really work?” Based on Dalio’s practical template for understanding the economy, which he developed over the course of his career, the video breaks down economic concepts like credit, deficits and interest rates, allowing viewers to learn the basic driving forces behind the economy, how economic policies work and why economic cycles occur.
To learn more about Economic Principles visit: http://www.economicprinciples.org.

For many of us the decision to buy or sell a home has nothing to do with the economy — it may originate from life events like having kids and needing more space, or landing a new job, or retiring, or just wanting to live somewhere different for no reason at all. And for those that do buy or sell real estate due to economic considerations, it often has more to do with the deal dynamics and strategy than what the market is doing. In that scenario, understanding how the economy works can be quite beneficial.

If you or someone you know has an interest in buying or selling real estate, please contact me to learn more about the current housing market and your options. I am eager to help you learn more and achieve your goals…