How Macro Economic Issues Affect Middle Class Americans

by Hank Coleman

How economic issues affect AmericansThe stock market is humming along lately, but this is of course despite a few recent macro level economic hiccups. Thanks to the federal government and the shutdown the economy has continued to remain sluggish.

According to a report recently released by Standard & Poor’s, the government shutdown cost the United States $24 billion in lost production and growth. It took out $24 billion from the U.S. economy over the 16 day shutdown.

My Interview With Frank Trotter, President of Everbank Direct

In this episode of the Money Q&A podcast, “Your Money: Your Choices”, I interview Frank Trotter, the President of Everbank Direct, and we talk about how macro economic issues  affect everyday middle class Americans. Should you be concerned about quantitative easing or other Federal Reserve policies?

How do those decisions in Washington DC affect the rest of us? Will we ever see the return of a savings account that earns 4% annual rate of return or more. These questions and more are what I ask Frank Trotter of Everbank Direct. It is a great conversation about the economy and how large macro issues touch us all.

I asked Mr. Trotter about where quantitative easing comes into play. Is the average American concerned about quantitative easing? Should they be concerned about it?

“Well I think it’s interesting,” said Trotter. “You know Steve Forbes, when he gives talks sometimes says, ‘if you have a chatty neighbor on an airline and you want him to shut up, just say I’d like to talk about monetary policy’. And, I think it’s a really difficult topic, from a technical standpoint, to understand. So, I don’t know if people actually have a context even to understand it. We’re [Everbank Direct] concerned about it. Maybe it’ll work. Maybe it’ll be the dream scenario. It’s going to get us through, but it could be a disaster.”

Want to hear more about what Mr. Trotter had to say? Be sure to check out the rest of the podcast episode on iTunes.

Bankrate.com Interview: Where Are Mortgage Rates Going?

Additionally during this episode of “Your Money: Your Choices”, I talk with Claes Bell, analyst for Bankrate.com about the economy is headed. We talk about where mortgage rates and other key interest rates are going in the future. You won’t want to miss this great episode where I talk with two interesting guests about macro, large level, economic trends and how these economic issues affect middle class Americans and their everyday lives.

HANK COLEMAN: What about housing trends? Is Bankrate seeing or done research on the housing trends lately? And, what is Bankrate seeing about the housing?

CLAES BELL: Well, I think Bankrate is seeing that the mortgage rates are going up. It’s been a gradual rise, but they have gone up. And, they’ll probably continue to do so over the next couple of years, just as the Fed kind of backs off of the quantitative easing they’ve been doing. And they haven’t started backing off yet, but the sense is that they will begin to do so, and people are beginning to prepare for that.

HANK COLEMAN: Does Bankrate forecast and put a mark on the wall of like where rates will be for like 30-year fix, next year, or year after?

CLAES BELL: No, not really. Obviously we have some really smart people that look at mortgages everyday and have opinions about where they’re going to go, but mortgage rates are just so unpredictable, it’s hard to say exactly where they’ll be.

download-on-itunes

Download the podcast on iTunes to hear the entire interview with Claes Bell from Bankrate!

“Your Money: Your Choices” Podcast

Roth IRAs, CDs, stocks, insurance, your 401K . . .what are the right choices for your financial future? Your Money: Your Choices will clear out the cobwebs and confusion surrounding these concepts and more with clear and concise information.

Past Episodes Of “Your Money: Your Choices”

  • Episode #18 (10-7-13) - Can You Be Too Frugal? Is There Such A Thing As Being Too Frugal?
  • Episode #17 (9-15-13) - How Not To Buy Cat Food When You Don’t Own A Cat
  • Episode #16 (9-2-13) - Put Your Money Through Boot Camp – Soldier Of Finance By Jeff Rose
  • Episode #15 (8-26-13) - What Young Adults Need To Know About Money When Starting Out

Click here for more past episodes of the “Your Money: Your Choices” podcast.

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About Hank Coleman

Hank Coleman is the founder of Money Q&A, an Iraq combat veteran, a Dr. Pepper addict, and a self-proclaimed investing junkie. He has written extensively for many nationally known financial websites and publications. Hank holds a Master’s Degree in Finance and is currently pursuing his Certified Financial Planner credentials. Email him directly at Hank[at]MoneyQandA.com.


Hank Coleman has written 522 articles on Money Q&A. Learn more about Money Q&A on Twitter @MoneyQandA and @HankColeman.


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{ 2 comments… read them below or add one }

Levi Blackman

Great guest this week Hank. Really insightful stuff on a difficult topic. Hopefully the fed will back off soon before our money is devalued past a point of no return.
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Jack @ Enwealthen

The US government is banking (pun intended) on the average American’s ignorance and apathy towards monetary policy.

In my opinion, quantitative easing is a crime against America. At some point the $85,000,000,000 a month in new money / debt creation is going to blow up. And when those chickens come home to roost it’s going to be even uglier than if they had let all the investment banks go under 6 years ago. We’ve had a process for resolving insolvent institutions in place which has worked for decades if not centuries – bankruptcy. Now we have nothing but promises and inflation.

This new system is going to end poorly, and history will look at us all with amazement at our apathy and decadence.
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