Blockbuster GDP third quarter growth came despite high interest rates, but they did impact the most recent U.S. deficit figures. The impact of higher interest rates and inflation on consumption and investing runs through many of the headlines included in this week's reading list.  There is also a crypto update (anyone dressing up as SBF for Halloween?) and a Halloween adjacent article on the dangers of some (dark) chocolate. Happy reading and Happy Halloween!

Economics

• GDP in the third quarter rose 4.9% (annual rate, well above the second quarter's 2.1% rate and the 4.3% expected by economists. (CNN)
• The most surprising thing about the increase in the deficit reported late last week is that the biggest driver was lower revenues. Not so surprising was the impact of rising interest rates on the government’s interest payments. (WAPO)(Reuters)
• Internationally, the EU Central bank is keeping interest rates steady (Reuters1) and the Bank of England is expected to keep interest rates steady. (Reuters) In the US, the FOMC meets again next week to decide the same issue.
• The Ludwig Institute for Shared Economic Prosperity has come out with an update to their “True Living Cost” Index which has increased more than it has since 2004. (PRNewswire)
• The AUW strike is motoring along (pun intended) but is appears that they have reached a deal with Ford. GM and Stellantis are still up in the air. (Reuters)
• The wealthy are driving the strong consumer spending. (WAPO)

Investing

• Jeff Sommer of the NYT gives great guidance to investing in fixed income securities of all types in today’s interest rate environment. (NYT-Strategies)
• Index funds, ETFs and private equity have been major disruptors in the 60/40 portfolio world of retirement investing. (Pensions and Investments)

Cryptocurrencies

• If you are following the trial of SBF of FTX, here is the latest—SBF is about to take the stand in his own defense. (Reuters)
• Why is Bitcoin surging? (CNN)

Paying for College

• Visual Capitalist shows the average student debt for a variety of majors for bachelors’ degrees in the US.

Financial Wellness/Behavioral Finance

• An Experian Survey of just over 2000 people found that two-thirds of those surveyed suffer financial stress and anxiety. They look for explanations.
• Which kind of shopper are you? How to spend less money on your holiday shopping. Advice from WAPO’s Michelle Singletary.

Insurance

• The Atlantic exposes what happens to towns whose homes are uninsurable.

Just Because

• Halloween and hot chocolate season are upon us and you may want to read this before you buy/indulge in too much chocolate! Consumer reports has found potentially dangerous levels of cadmium and lead in many common brands of (dark) chocolate products. (Reuters)

About the Author

Beth Tallman

Beth Tallman entered the working world armed with an MBA in finance and thoroughly enjoyed her first career working in manufacturing and telecommunications, including a stint overseas. She took advantage of an involuntary separation to try teaching high school math, something she had always dreamed of doing. When fate stepped in once again, Beth jumped on the opportunity to combine her passion for numbers, money, and education to develop curriculum and teach personal finance at Oberlin College. Beth now spends her time writing on personal finance and financial education, conducts student workshops, and develops finance curricula and educational content. She is also the Treasurer of Ohio Jump$tart Coalition for Personal Financial Literacy.