Financial Folly

If every economist on this planet was laid end to end, they'd still never reach a conclusion. The talking heads in the mainstream media and the ghouls on Wall Street always seem to run their mouths but they never seem to say a whole lot. Everywhere you look, the headlines are painting a different image, but they almost always fail to see the real picture. If the big dogs are to be believed, America is in the midst of a rakish economic recovery. Every month, the United States posts superb jobs numbers, inflation is falling year-over-year, and the highbrows up at the Federal Reserve continue to promise the almighty, fabled rate-cuts any day now. Any day now. Don't worry, they promise!

Despite the Fed's most aggressive rate hiking campaign since the stagflation riddled 70's and an international supply chain still reeling in the wake of Covid-19, war in Europe, and just plain ignorant foreign policy mishaps, the S&P 500 recently posted a new all-time high in Q1 '24. Corporate profits increased 4.1% in the last quarterly report. The U.S economy added 275,000 jobs last month. The macroeconomic indicators seem to be on the up and up, so why are so many Americans, including small business owners, floundering in the surf?

78% of Americans live paycheck-to-paycheck. Half of U.S tenants struggle to pay their rent. Credit card debt soared to 1.13 trillion dollars at year-end '23. If you or your business have been left hankering for cash in recent years, you're certainly not alone! While the pundits and professors engage in profligate statistical analysis, many fail to see the reality on the ground for many of their compatriots. With inflation still hot, and a credit crunch resulting directly from the exorbitant interest rates designed to fight it, many businesses and consumers alike find themselves financially fraught.

For the better part of a decade, the Federal Reserve held interest rates near zero in the wake of the 2008 financial crisis. Up until we were again upended by the Covid lockdowns, America's economy was humming. In recent years, things have been shaky to say the absolute least. The Fed's scorched-earth campaign has left a trail of bank failures in its wake, brought America's housing market to a screeching halt for the first time since the 2008 crisis, and left many unable to access the funds they need to pay the bills or grow a business. Last year's failure of Silicon Valley Bank represents the second largest bank failure in US history, and many of their peers are left teetering on the brink of insolvency!

The Federal Funds Rate, the target rate set by the Fed, upon which all other interest rates are largely dependent, has risen from 0.05% in May of 2020 to 5.33% today. Per the Associated Press, The Fed recently announced that in light of persistent inflation, rate cuts will again be delayed. With higher rates, borrowing becomes more expensive, growth slows, and asset values generally fall. Many investors and business owners find themselves neck-deep in financial turmoil, unable to refinance existing debts due to downright punitive interest payments. Yet, after nearly 2 and half years of squeezing the American economy and her people, and inflation on the downswing, high interest rates show no signs of submission.

Here's the bad news: we can't snap our fingers and fix America's financial system. We can't put a swift end to this brazen financial folly. What you can count on is the expertise of the professionals at Tydal Funding. In times of strife, a keen eye and a steady hand go a long way. At Tydal Funding, we provide businesses with quality financial guidance and service to accompany our clients through the hard times and expedite the emergence of better ones.

None of us can magically fix this financial mess, but my colleagues and I will go to every length to get you through it.

You can't stop crazy. You can't stop a Tydal Wave, either.

We look forward to working with you. Let's get back to the good times.