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That would be $24 a year. The median sales price of a new home in September was $319,700. A mere 1% interest rate would return $3,197 per annum. $24 would be much less than that. I'm not sure I trust your math on this one.
I just want to know why, when I have enough cash in the bank to buy a nice moderate house, do I only get less than $2 interest every month.
First, get a money market account at least. I get $2 a month on $2000 compared to my $.02 on $2000 in my regular bank savings account. Regular bank savings accounts are not savings vehicles anymore, which has nothing to do with interest rates. I'm really surprised banks even still offer them.
And the question I'm still trying to answer is why The Fed stalled the market in the first place. The stock market is higher now, housing prices are higher now with no changes in general US income profile, the economy is still barely humming along with no crash. So why did they crash it then?
It's human nature to want to control things, even things that are not controllable. Central banks probably arose to prevent the natural economic cycles. We want everything to be nice and easy all the time, no big ups or downs.
What the idiots at the Fed don't realize is that our economy still has cycles whether anyone likes them or not. It's the nature of the beast. We spent trillions of our unborn children's money to try to deny the 2001-PRESENT NON GROWTH CYCLE OR DEFLATION CYCLE, trying to avoid pain for ourselves. In fact, pain makes us stronger, is part of the tempering process of history. Pain-avoidance as a philosophy may be what condemns civilizations to eventual defenselessness.
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But it's like trying to prevent waves on the ocean.
I think the tunnel vision of our leaders is to "cause no harm today" - to hell with the future. The FED is clinging to asset gains like they are a lifeboat in a dangerous sea. But the natural flow in economics, as in everything else, is that cycles of expansion and inflation flow into depression, deflation, hardship and then flow back into expansion and inflation. The depression stage of this equation can't be left out just because it is painful and dark and damages - it has a positive side also, wrings out inflation, reinvigorates the local currency, and the mountain of debt that chokes out growth.
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The Fed's actions, especially recently, are guaranteed to cause severe damage, in my opinion. The only question is when. They manage to inflate one bubble after another, but there has to be a limit.
We know that FED lowered interest rates alllowed corporations to sink billions into buying their own stocks to keep the markets from collapsing - and to allow factually defunct corporations from evaporating in bankruptcy. I don't believe this type of intervention can be perpetually effective. Greenspan and Bernanke (and Yellen) only delayed the pain they did not eliminate it. We will pay a huge price for messing with CAPITALISM!!!!!!!!!!!!!
The economy is not doing anywhere near as bad as posters are complaining about. In fact it is doing good, new jobs are running way ahead of expectations.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Originally Posted by oldtrader
The economy is not doing anywhere near as bad as posters are complaining about. In fact it is doing good, new jobs are running way ahead of expectations.
Yes, the economy overall is booming. Yes, some people have been left behind, and they are very vocal about it, but there have always been people left out, and in fact it’s less now than in the past. It’s just more obvious with this greater distance between the higher and lower income people, and less in the middle.
I agree, millions are struggling through poverty. I have 6 figures of supposed assets but fiat currency has become worthless. The numbers don’t tell the true story.
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