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But the Fed doesn't care that their policies have been utter failures when it comes to the 99%.
Many people who aren't the 1% have benefited from the Fed's policies.
You might find this hard to believe, but people sitting on a big pile of cash hoping it throws off enough interest for them to live on are the exception, not the norm.
Many people who aren't the 1% have benefited from the Fed's policies.
You might find this hard to believe, but people sitting on a big pile of cash hoping it throws off enough interest for them to live on are the exception, not the norm.
What is your evidence of this? Hell even I have money market accounts that don't throw off cash as of now. I also don't have my retired mother in 100% equities. That's two people I know already.
The state government of Illinois raised taxes because of low yields, adding a whole lot of other people to the pile. I also have other news for ya. Corporate borrowing rates are also affected by the low rates. They compete with low return government bonds. So throw in my junk bond fund too. Anyone who owns bonds of any kind are affected by this....So no one but the 1% owns bonds?
Now I suppose you are going to tell me this helps business invest....Well yes, its given them more cash flows which they have used to buy their own equities, not expand their business.
We don't need the Fed for this problem. In fact it cannot even fix the problem. The Fed can restrict the flow of credit, but it can do little to increase it during a liquidity crisis.
Jim should be able to spot "don't have a clue" from a mile away.
Oil, grains, gold, markets....he has been wrong more than Gartman, and that takes some doing.
There are those that can/do, and those who write market letters. Jim worked for Soros, but somehow he got off track a couple decades ago and has been unable to get back in synch.
What is your evidence of this? Hell even I have money market accounts that don't throw off cash as of now. I also don't have my retired mother in 100% equities. That's two people I know already.
The state government of Illinois raised taxes because of low yields, adding a whole lot of other people to the pile. I also have other news for ya. Corporate borrowing rates are also affected by the low rates. They compete with low return government bonds. So throw in my junk bond fund too. Anyone who owns bonds of any kind are affected by this....So no one but the 1% owns bonds?
Now I suppose you are going to tell me this helps business invest....Well yes, its given them more cash flows which they have used to buy their own equities, not expand their business.
We don't need the Fed for this problem. In fact it cannot even fix the problem. The Fed can restrict the flow of credit, but it can do little to increase it during a liquidity crisis.
most americans have had far more money put in their pocket from reduced debt service and cheaper prices on goods and services from low rates then their meager savings would ever see .
everything from mortgages to car loans are cheaper across the board . even those a tier below in credit are seeing proportionally lower rates .
1/2 of america does not even have any savings to get interest on . those who do don't usually pile it in to cash instruments 100% either so even if they bought bonds they did just fine from low rates
most americans have had far more money put in their pocket from reduced debt service and cheaper prices on goods and services from low rates then their meager savings would ever see .
everything from mortgages to car loans are cheaper across the board . even those a tier below in credit are seeing proportionally lower rates .
1/2 of america does not even have any savings to get interest on . those who do don't usually pile it in to cash instruments 100% either so even if they bought bonds they did just fine from low rates
So you are just going to tell me again without bothering to back up your assertions with facts.?
Illinois’ political leaders said the goal of this tax hike was to pay down the state’s backlog of bills, stabilize the state’s pension crisis and strengthen its economy.
My state explicitly raised taxes including sales and income taxes because of pension fund short falls. How again did taking 2% out of everyone's pay check, and raising corporate taxes in a large state like Illinois stimulate the economy again? Bit confused on that....
That isn't the only one. Same thing at the municipal level.
Last fall, Mayor Rahm Emanuel proposed — and the City Council approved — a 2016 budget with $755 million in tax and fee increases, including the largest property tax hike in modern Chicago history to cover contributions to pension funds for police officers and firefighters.
Yes I did refinance and I was able to save a few hundred a month. However that cost me refinancing fees to get it. In a normal inflationary environment it would have been far better to pay down my mortgage with rising income.
Another twist on this is low interest rates just turn into housing capital. First time home buyer will just see higher principle balances on "lower rates" . Big stimulus there too. It is also a wee little problem that low interest rate environments make qualifying for loans more difficult. One of my friends had trouble qualifying for a refinance. Those under water could not do so at all.
So again, its no surprise that low interest rates have still resulted in stagflation. At best the effect was marginal. Its possible that the net result might make a little difference, but with saving short falls, tax hikes, delayed retirement and lower retirement income , there is a lot of head wind.
Americans spent 5.8% of their after-tax income paying interest on mortgages, credit cards, car loans and other debt, according to the latest data from the Bureau of Economic Analysis. That's the smallest share since 1977 and a steep drop from a record high of 9.1% in 2007.
Household interest payments fell to an average of $469 per month at the end of last year, down from a peak of $728 in 2007, after adjusting for inflation. That equals $3,100 a year.
Three-fourths of the interest savings stem from falling rates, the rest from a reduction in debt.
Mortgage interest payments are down 30% from their 2007 peak. Interest payments on other debt, such as credit cards and car loans, are down 50%.
I can give you two. Both of them have something to do with silver. One thing that helped Europe's liquidity was the Americas. Adam Smith in his book mentioned the price of silver due to Peruvian silver mines.
The other example was when the US demonetized silver ands cause the depression in the 1870s. It took several decades but what finally ended the silver monetary battle was an increase in the supply of gold.
Both examples are an increase in the supply of base money, not cause bankers decided to make nicey, nicey on credit.
Any idea on how to increase base money now? Perhaps you'd be interested to know base money is now da guberment debt. There is only one gold or silver mine in the world now.
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