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This has nothing to do interest rates. It's well known that a weak dollar helps manufacturing(even though the dollar has been strong, but low interest rates obviously contribute to a weaker dollar), and deteriotion of construction what could that possibly have to do with low interest rates?
And what to do low interest rates have to do with low prices of oil?
Low interest rates do not cause low commodity prices. You are making no sense.
Well you certainly bought the Oligarchy propaganda hook, line, and stinker.
Strong current allows the holder to purchase useful assets for continual wealth building. Weak currency allows others to purchase assets at discount.
All the Fed managed to do after 7 years of attacking middle class wealth has been to transfer wealth from the middle class to the Oligarchy. Those trillions of dollars of money that was printed all ended up in the Swiss accounts of the Uber-rich. Lots of it is in mattresses on China and it all has to be laundered by buying up property using can in the U.S and elsewhere. Cute stuff.
Commodity prices, such as soy beans pricing, have imploded over 50% because the .1 of 1% of the population that owns 50% of the world's wealth don't eat tofu. Concentration of wealth, the total intended net effect of the Central Banks' "money printing for the rich policies", had reduced worldwide demand for all goods. Poor people don't purchase as much goods as a strong middle class who actually create demand for goods and services. Eisenhower had it right.
The whole concept of weak currency and enormous debt is good for and economy and the middle class and poor is so outlandishly silly that only academics or people who watch CNBC diligently would actually believe it. It is dumb, dumb, dumb, dumb propaganda designed to make it easier for the Oligarchy to farther wealth at an unprecedented rate. Guys like Kramer and other Quislings are paid good money to regurgitate the silly party line.
So if the Fed's only charge the Financial community 0.25, then someone please explain how it benefits the public when banks can use "Tax Payer Money" @ 0.25 and turn around and charge America People high rates for consumer loans, Credit cards and any other type of loan, along with adding a continual barrage of fee's upon and against the same public who's money they use via deposits as well as via borrowing from the Feds? Result = Banks claiming 4+ $Billion Profit every 3 months,
Quote:
Would we not be better off and things made simpler for citizens to borrow directly from the government as American Public consumers and simply pay the government the interest? - We'd at least have some guarantee that banks are not in the game to crash the economy, We'd get better rates and the government get interest profits.
I too wonder if Fannie and Freddie bought all those home loans and stood as the underwriter - why did'nt Fannie and Freddie work with HUD and simply become the major lender to the general public? They owned the loans anyways, would it not be easier to take the banks "out" of the Home Loan equation and pay our payment and Interest to HUD via FHA having developed a "Direct" lending organizations? (for homes up to 750K price range at a flat fixed rate of interest)
Then instead of Banks claiming 4+ $Billion Profit every 3 months, that is 4+ Billion profit going into our Government system of HUD, which allows HUD to be able to do more, and the Fannie and Freddy Loans would be made into low interest performing loans. (We know if the bank claimed 4+ $Billion surely they took in 6-8 Billion and hid the rest through their schemes to make their executives stock options more valuable).
We could have stopped the housing slide in its tracks, because Fannie and Freddie OWNED so many loans, they could have made low fixed rate quickly, and shut down the foreclosure madness.
Again, why are banks allowed to charge such high interest rates on Credit Cards, and why are banks allowed to add the crazy list of Fee's over and over and over. Yet, they are Using a Mass of Federal Money to support their gouging enterprise.
Maybe we need to re-think Banking, Re-create Glass-Steigal with even more controls to force banks to be banks and investment houses to be investment houses and put some controls on the Insurance Companies.
If we apply enough pressure in the right places, it would be great if we could curb the madness of " Mergers and Acquisitions", because these companies taking on the massive debt, (of which we are indirectly held liable for through various means which tie directly back to banks and insurance companies), The mergers and acquisition make Banks Wealthy, Attorney Firms Wealthy, Accounting Firms Wealthy, and result to do nothing but "place 10's of thousands of people out of work". If the Banks can't get the money back from the companies who merged, or acquired others, "then who pays for the massive losses". = US !!!!
We have never seen a merger or acquisition which did not result to displace 1,000's of people to the unemployment line, while at the same time the executives paid themselves a "bonus" and increased their give away of stocks to themselves, and raise their pay.
0.25 is not going to do anything to slow that madness, because they still get PUBLIC MONEY for next to nothing.
Then a year later, they want to sell of components and the whole point results to be nothing but a constructive means to 'destroy competition in pursuit and aims to be covert in means of becoming a monopoly.
We've seen it time and time and time again.
The companies they destroyed are gone and later when the executives clean out the coffiers, they claim then the need to file 'bankruptcy". Result, they used "Public Money at 0% and now at the insidiously low rate of 0.25%.
We get "inflated cost" because now the monopoly can increase rates. - Example - Cable TV, and things like Hospitals who are collected under some management company, and suddenly medical care rates go sky high, service cut and then they start closing facilities.
The Airlines who filed bankruptcy, ripped employees, laid off 10's of thousands, came back with executives giving themselves % of the company, raising their pay, issuing each other stock options, then they closed routes, retired A/C for the sole sake to reduce capacity so they could charge higher rates, then after all the cuts and bleeding it for all they could get, then they pursued the act of "mergers", knowing a merger would allow them to "cash out and run with the money".
We paid for that madness, with increased rates and fees for financial industry trying to recoup the loss from the general public, ( after they'd gambled with public money). We see the stock manipulators, playing games to spike, drain off and crash the stock. Again, "We Pay".
The financial industry is quick to tell us "Nothing is Free", while they use the Public Money "Free of Charge", and turn around and loan it back to us (the public at criminal rates).
People at some point in the future may go right back to the reality that people learned in the crash of 1929 and then look at the economic crashes before that, all the way up to the 2007-2008 Crash and each timeBanks played a big role in the economic crash.
Last edited by Chance and Change; 12-18-2015 at 08:37 AM..
So if the Fed's only charge the Financial community 0.25, then someone please explain how it benefits the public when banks can use "Tax Payer Money" @ 0.25 and turn around and charge America People high rates for consumer loans, Credit cards and any other type of loan, along with adding a continual barrage of fee's upon and against the same public who's money they use via deposits as well as via borrowing from the Feds? Result = Banks claiming 4+ $Billion Profit every 3 months,
I too wonder if Fannie and Freddie bought all those home loans and stood as the underwriter - why did Fannie and Freddie work with HUD and simply become the major lender to the general public? They owned the loans anyways, would it not be easier to take the banks "out" of the Home Loan equation and pay our payment and Interest to HUD via FHA having developed a "Direct" lending organizations?
Then instead of Banks claiming 4+ $Billion Profit every 3 months, that is 4+ Billion profit going into our Government system of HUD. (We know if the bank claimed 4+ $Billion surely they took in 6-8 Billion and hid the rest through their schemes to make their executives stock options more valuable).
We could have stopped the housing slide in its tracks, because Fannie and Freddie OWNED so many loans, they could have made low fixed rate quickly, and shut down the foreclosure madness.
Again, why are banks allowed to charge such high interest rates on Credit Cards, and why are banks allowed to add the crazy list of Fee's over and over and over. Yet, they are Using a Mass of Federal Money to support their gouging enterprise.
Maybe we need to re-think Banking, Re-create Glass-Steigal with even more controls to force banks to be banks and investment houses to be investment houses and put some controls on the Insurance Companies.
If we apply enough pressure in the right places, it would be great if we could curb the madness of " Mergers and Acquisitions", because these companies taking on the massive debt, (of which we are indirectly held liable for through various means which tie directly back to banks and insurance companies), The mergers and acquisition make Banks Wealthy, Attorney Firms Wealthy, Accounting Firms Wealthy, and result to do nothing but "place 10's of thousands of people out of work". If the Banks can't get the money back from the companies who merged, or acquired others, "then who pays for the massive losses". = US !!!!
We have never seen a merger or acquisition which did not result to displace 1,000's of people to the unemployment line, while at the same time the executives paid themselves a "bonus" and increased their give away of stocks to themselves, and raise their pay.
0.25 is not going to do anything to slow that madness, because they still get PUBLIC MONEY for next to nothing.
Then a year later, they want to sell of components and the whole point results to be nothing but a constructive means to 'destroy competition in pursuit and aims to be covert in means of becoming a monopoly.
We've seen it time and time and time again.
The companies they destroyed are gone and later when the executives clean out the coffiers, they claim then the need to file 'bankruptcy". Result, they used "Public Money at 0% and now at the insidiously low rate of 0.25%.
We get "inflated cost" because now the monopoly can increase rates. - Example - Cable TV, and things like Hospitals who are collected under some management company, and suddenly medical care rates go sky high, service cut and then they start closing facilities.
The Airlines who filed bankruptcy, ripped employees, laid off 10's of thousands, came back with executives giving themselves % of the company, raising their pay, issuing each other stock options, then they closed routes, retired A/C for the sole sake to reduce capacity so they could charge higher rates, then after all the cuts and bleeding it for all they could get, then they pursued the act of "mergers", knowing a merger would allow them to "cash out and run with the money".
We paid for that madness, with increased rates and fees for financial industry trying to recoup the loss from the general public, ( after they'd gambled with public money). We see the stock manipulators, playing games to spike, drain off and crash the stock. Again, "We Pay".
The financial industry is quick to tell us "Nothing is Free", while they use the Public Money "Free of Charge", and turn around and loan it back to us (the public at criminal rates).
People at some point in the future may go right back to the reality that people learned in the crash of 1929 and then look at the economic crashes before that, all the way up to the 2007-2008 Crash and each timeBanks played a big role in the economic crash.
Now we are cooking.
Let's not forget how corporations used the free money to build factories overseas to access cheap labor while closing down factories in the U.S. U.S workers in effect paid for destroying their own jobs and for all the bribery it took to get access to cheap labor in Asia and elsewhere.
And let's not forget how corporate execs used corporate bond debt for not only M&A activity but even more directly to buy back their own stock options, thus enriching themselves at the expense of the viability of the corporation.
Free money distorts all economic activity and the primary beneficiaries by far were the Billionaire class.
sooner or later, who knows when, things will get real. probably war first. all the cheerleaders for free money, free giveaways, govt. support, etc will wonder WTF happened. one side will blame the other when it's taxpayers who are ultimately to blame for letting it happen to them. anyone who lived through the 60's is going to get a deja-vu moment when riots and mass demonstrations occur when they raise taxes, reduce freedoms and send your sons to war.
In my limited 30years on this planet here is what my observations have told me will happen: Lots of people will come up with theories about what will happen. Something different will happen. Said people will lie and state they predicted it right anyways. Other people will boast they shorted it and got rich, wont provide evidence of their claim.
sooner or later, who knows when, things will get real. probably war first. all the cheerleaders for free money, free giveaways, govt. support, etc will wonder WTF happened. one side will blame the other when it's taxpayers who are ultimately to blame for letting it happen to them. anyone who lived through the 60's is going to get a deja-vu moment when riots and mass demonstrations occur when they raise taxes, reduce freedoms and send your sons to war.
I agree. Obama is already talking up a war in the Middle East. Cruz wants to start carpet bombing. Trump wants a no-fly zone in the Middle East to start shooting down Russian planes which in turn is threatening Turkish planes and warships which in turn is invading Iraq to fight Kurds who are being supported by the U.S.The war mongers are on the war path because they all lust the oil revenue to prop up their corrupt regimes.
Of course, fascism is making a big comeback in Europe where unemployment is still at Depression levels.
The Billionaire class is itching for a war, one where they will use their Serfs to fight.
Getting a grip to learn the factors of 'Fed Rate Changes' and think about how our future has to evolve.
There is only one ways our system will improve - It will be when we start teaching our "young about" Banking, we must teach them the "truth" and many of the truths lean into the negative arena of factors. Are we as a society willing to teach them these aspect, is and will be the over-bearing question".
When we as a people must first learn - "A government has to take its stature back from the banks"; We've allowed banks and financial institutions to usurp our government to the point, they now dictate policy and influence regulations until we have become a society indentured to the banks and reliant on Banks to the point banks have the ability to Crash Our Economy.
Fannie and Freddie Existed for a purpose_ We never grasp the role they should play in support and benefit of the public citizen. If we had- Fannie and Freddie would be whom we pay our mortgage payments to- directly through HUD established FHA lending units. Banks would have ABSOLUTELY NOTHING to do with mortgages. We'd be able to pay off homes in 15 yrs at a flat rate, rather than the collusion of banks 30 yr robbery set up for home loans.
When people want to borrow against their homes, they could be limited to taking no more than 50% of its equity. The can sell it only after holding it and being owner occupied for a minimum of 5 yrs. Provisions would allow them to rent it only in the event of job change to a different location or some outline which does not erode the owner occupied guidelines.
If people want to buy "rental property" - then go to the Bank- it would be done as a commercial loan and not as a Real Estate Loan, it will be under commercial terms and guidelines or enterprise loan guidelines.
There would be no packaging and repackaging and creating derivatives of bonds composed of Real Estate, because there is and would be no need nor reason for HUD to have interest or need for such risky games.
Never in the history of American could banks bring havoc to peoples homes. IF a person wanted to improve their home, those provisions can be done through HUD, or if people take out consumer loans for home improvements, No Lien can be taken against the home as collateral.
If the Real Estate Agencies which must be regulated by HUD try to play the "inflate the value games", then any valuate increase above 5-7 in any one year, will trigger an automatic property tax hike on the property. Then we stop the game of over-inflated property values. Homes would have then a standard of maybe 2-3 or so value increase as some measured progression, this will prevent the over inflated property valuation, which is nothing more than a game of RE Agents and Brokers to increase their Commission. When property escalate too high too fast, it becomes nothing more than a burden to cities, because the over priced home brings a homeowner who wants more and improved public services, but they don't want to pay increased property tax.
Many cities saw blight increase, because over valued areas got the bulk of the public service, but they were not paying higher property tax to match the commercial sales price of the homes. It created a nightmare for many cities and forced areas to deteriorate who did not receive the best of public services because they did not have the 'commercial sales value sticker".
The Greed Game has be become controlled by the new generations to come, If we teach them well, they will then know how to reel this madness in and put some "RESPONSIBLE" policy and regulations, and they will then only elect people who are 'responsible and not in office for the greed game of seeking campaign funds and kickbacks.
Unfortunate as it is, the Baby Boomer come from an era where this was not common to change the financial machine, their first wave of offspring's (Children) were groomed in the Me'ism and "get rich quick", and the second wave of baby boomer offspring's (Grand-kids) have gotten lost in 'celebrity obsession and lusting of every sort. the third wave offspring's ( Great Grand-kids) are lost in Social Media and Digital Gaming).
This means the burden of change falls upon the "Great Great Grand-kids of Baby Boomers), who are either just being born or they are toddlers under the age of 5. This puts them around 2028 before they graduate high school. Maybe by them a 12th grade high school graduate will be equal to the knowledge base of what today we call a Bachelor Degree. Because the current model of University degree game shams has to change!!!! With technology and advances of many sort, it will only take an additional 4 yrs, with heavy labs and heavy involvement in OJT learning, to produce the top level of 'ready to work" specialty professionals. They will be groomed to understand the want and need for ongoing learning. Then we don't put people through 12 yrs to push buttons on pre-programmed robotic surgery machine. This is where and how technology will change the dynamic of many things, include the training required to produce a doctor, or other professionals.
Today, there are already robotic surgeries, Scans of every sort and portable data devices with all the stored information to feed variables into and get a summary over view. We won't need people guessing. they will have the data process in their hand capable of giving them full spectrum info.
Getting a grip to learn the factors of "Fed Rate Changes" and think about how our future has to evolve.
Nothing is really free. We know about inflation. A low rate may be good for the loan borrower but still someone must pay. Who pays? Investors cannot get a good return on their savings. They pay and support the low interest borrowers.
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