Pathway to Prosperity

“Affordability” is too often just shorthand for “prices went up.”

But price and affordability are not the same thing.

Prices rose. So did wages. So did household wealth.

Affordability is purchasing power, not just price tags.

Read more here: https://wasatchfinance.com/the-affordability-crisis/

When most people hear “the market,” they think stocks.

But the credit market is the real heartbeat of the economy. It determines the price of capital, helps transmit monetary policy, and quietly signals growth, inflation, and risk long before many people notice.

If you want to better understand what’s really happening beneath the surface of the economy, learn to speak credit.

My latest commentary: Do You Speak Credit?

https://wasatchfinance.com/do-you-speak-credit/

Growth ≠ Inflation
One of the most persistent myths in economics is that economic growth automatically leads to higher prices—It doesn’t.
True growth—driven by investment, innovation, and productivity—increases output while reducing the cost of producing goods and services.
That process expands real purchasing power.
Historically, the greatest periods of wealth creation have been disinflationary:
• Industrialization
• Technological revolutions
• Globalization
More output —> Lower unit costs = Higher living standards.
Inflation is usually not caused by growth—It’s caused by monetary expansion outpacing productive capacity.
This distinction matters—especially in real estate and capital markets.
When investors confuse monetary inflation with productivity-driven growth, they misprice risk, misallocate capital, and misunderstand cycles.
Smart capital focuses not on headlines—but on the sources of real economic expansion.
What do you think is driving inflation today: Monetary policy… or structural constraints?

A projected 16% return built on leverage, optimistic assumptions, and future value creation isn’t automatically better than a 10% return backed by strong collateral, conservative underwriting, and a clear exit.

In real estate, raw yield is often mistaken for intelligence.

Real wealth is built through equity —
and preserved through disciplined credit decisions.

The best investors don’t ask: “What’s the return?”

They ask: “What risk am I taking to earn it?”

That distinction is where cycles are survived …
and fortunes are compounded.

Do you know the price of money? It’s the interest rate.

Interest rates influence far more than most people realize. They help determine:

• Real estate values
• Stock prices
• The strength of currencies
• Risk-taking across the economy
• The severity of boom-bust cycles

When the cost of borrowing money is artificially low, asset prices tend to rise. When it increases, valuations often reset. This isn’t just theory — it’s one of the most powerful forces shaping financial markets and long-term wealth outcomes.

Understanding how interest rates affect the economy isn’t just for economists or investors. It’s essential knowledge for anyone making decisions about housing, saving, investing, or business.

I wrote a short piece explaining why interest rates are often called “the most important price in finance.”

You can read it here:
https://wasatchfinance.com/the-price-of-money/

Curious to hear your thoughts:
Do you think central banks stabilize markets — or distort them?

A tale of two economies: Headlines are dour—Oil over $90, stocks down, geopolitical uncertainty, ugly jobs headlines.

But day-to-day reality is more nuanced—unemployment is just 4.4% and real total earnings are up 2% year-over-year.
That gap between headline economy and household economy is the story.

What are you watching most right now—gas prices, the job market, or interest rates?

Oil jumps. Gold rallies. The VIX spikes. Stock futures turn red. Within minutes, the financial media labels it: “risk-off.”

Every geopolitical shock triggers the same reflex — fear, repositioning, volatility.

But here’s the important distinction: Volatility is not permanent loss. It’s repricing.

The real danger isn’t that markets move. It’s that investors overreact.

If you wait for calm before investing, you’ll wait forever. Successful investors structure liquidity, manage risk, and stay disciplined — especially when headlines get loud.

New blog: The Fear Trade
👉 https://wasatchfinance.com/the-fear-trade/

GDP can be up while your budget feels down.

That’s the difference between “the economy” (averages) and “your economy” (monthly bills). This week I unpack 2025’s growth, inflation vs. wages, jobs, unemployment, household wealth—and why perceptions can diverge so sharply from the data.

https://wasatchfinance.com/the-economy-vs-your-economy/

“Rumors of my death have been greatly exaggerated.” — Mark Twain (paraphrased)

Crypto is dead Again—Or so we’re told every time prices fall.

Bitcoin was born from a crisis of trust, built on scarcity, and designed to exist outside political control.

Volatility isn’t a death sentence. It’s the cost of being early.

Full commentary here:
https://wasatchfinance.com/crypto-is-dead-or-is-it/

When gold and silver rise together while the U.S. dollar weakens, markets are quietly telling us something about inflation, interest rates, and monetary policy.

Inflation may not roar, but it can linger.
Rates may not spike, but they can remain constrained.

For real estate investors, mortgage brokers, and anyone paying attention to capital markets, this matters more than the headlines.

Full commentary here:
https://wasatchfinance.com/all-that-glitters/

https://pathwaytoprosperity.com/faster-nickels/

“The first object of taxation is to secure revenue. But if the rates on large incomes are so high that they disappear, the small taxpayer will be left to bear the entire burden.” Calvin Coolidge