FIRE Economy
Categories: Banking, Real Estate, Insurance
Everything’s on FIRE...but it’s fine, everything is fine.
The FIRE economy is the part of the economy that includes finance, insurance, and real estate (you know, Finance, Insurance, and Real Estate...an acronym!). What do all of these sectors have in common that puts them under one roof? They are all making money on money, and making money on debt. Who knew back in the day when we only sold physical goods in the market that one day we’d be selling reverse, short-term put options?
The FIRE economy houses all the banks (investment, commercial, etc.), credit card companies, credit unions, mortgage brokers, insurance companies, real estate agencies, and pretty much anything investment-related. As globalization continues, the FIRE economy is taking up more and more of the economy in higher-income nations’ economies. Spreading like a wildfire.
Since the FIRE is only getting hotter, it’s becoming more important. When FIRE industries are doing well, it’s like an espresso shot for the economy. When FIRE industries take a dive (which is oftentimes together), the whole economy goes into hangover mode.
Like we said, everything is fine. Just fine.