Page 219 - Psychology of Money - Timeless Lessons on Wealth, Greed, and Happiness-Harriman House Limited (2020)

feelings as they bought clothes for their first baby. It was as if the very
accomplishment of owning a home reflected such an immense breakthrough
COBACOBA
that nothing was too good to buy for it.

Now’s a good time to connect a few things, as they’ll become increasingly
important:

America is booming.

It’s booming together like never before.

It’s booming with debt that isn’t a big deal at the time because it’s still low
relative to income and there’s a cultural acceptance that debt isn’t a scary
thing.

6. Things start cracking.

1973 was the first year where it became clear the economy was walking
down a new path.

The recession that began that year brought unemployment to the highest it
had been since the 1930s.

Inflation surged. But unlike the post-war spikes, it stayed high.

Short-term interest rates hit 8% in 1973, up from 2.5% a decade earlier.