Today I’d like to discuss interest rates, which have been a hot topic in markets. I want us all to understand both the basics of interest rates and how interrelated interest rates are to the markets at large. To me, Rube Goldberg’s art expresses both the complexity and chain reaction nature of interest rates, as well as the simple results/outcomes they produce. A home purchaser might see their mortgage rate as a simple cost function that determines their monthly payment (simple), but they might also now consider the impact that the Federal Reserve has on how that risk (their mortgage) was actually priced (complex).

So, I invite you to join me on this journey through the wild world of interest rates.

… and so, without further ado …

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