Last week’s Federal Reserve action (err, make that inaction) caused a stir in the financial markets.
Common view was: ” geez, is the economy so bad that it can’t absorb a measly 25 bps increase in interest rates?”
In yesterday’s post, I put the number in context, illustrating that the economic cost of a measly .25% just on servicing the national debt is about $45 billion ( .25% times $18 trillion) …. equivalent to roughly half of the Federal government’s annual cost for ObamaCare.
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Today, let’s take a couple of more views of the 1/4 of 1 % …. the impact on household incomes.
The Homa Files 