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what is the real reason?
does it really help anyone?
buy a house,buy a car ,r people who have credit card debt dont see any savings.
Fed buying treasury instruments every month?to keep rate low??
Or are we afraid if rate rises,foreign money will come in ?
what is the difference if rate is zero vs rate is 2%?
In short: low interest rate environments are meant to stimulate economic growth by making it cheaper to borrow money to finance investment in both physical and financial assets. (in order to stimulate economic growth and prevent deflation)
Amidst the global coronavirus pandemic the U.S. and other central banks once again set their target interest rates to close to 0% to stem the economic and financial fallout.
In general, savers and lenders will tend to lose out while borrowers and investors benefit from low interest rates.
Low interest rates reduce their monthly mortgage payment, it also mean more spending money in consumers' pockets. Consumers may be willing to make larger purchases and will borrow more, which spurs demand for household goods. It also helps businesses make large purchases and boost their capital.
Drawbacks are low interest on savings and investments.
Also, low borrowing rates might increase the amount of debt people are willing to take on, which could be a problem for both banks and consumers when interest rates begin to rise.
In short: low interest rate environments are meant to stimulate economic growth by making it cheaper to borrow money to finance investment in both physical and financial assets. (in order to stimulate economic growth and prevent deflation)
Amidst the global coronavirus pandemic the U.S. and other central banks once again set their target interest rates to close to 0% to stem the economic and financial fallout.
In general, savers and lenders will tend to lose out while borrowers and investors benefit from low interest rates.
Low interest rates reduce their monthly mortgage payment, it also mean more spending money in consumers' pockets. Consumers may be willing to make larger purchases and will borrow more, which spurs demand for household goods. It also helps businesses make large purchases and boost their capital.
Drawbacks are low interest on savings and investments.
Also, low borrowing rates might increase the amount of debt people are willing to take on, which could be a problem for both banks and consumers when interest rates begin to rise.
If low interest rates stimulate economy, why not just go to zero? This way people can keep all their hard earned profits.
Or even better is let everyone just create money and cut out the middle man altogether. The govt can increases taxes on everyone as opposed to paying principal and interest to some private banker.
In short: low interest rate environments are meant to stimulate economic growth by making it cheaper to borrow money to finance investment in both physical and financial assets. (in order to stimulate economic growth and prevent deflation)
Amidst the global coronavirus pandemic the U.S. and other central banks once again set their target interest rates to close to 0% to stem the economic and financial fallout.
In general, savers and lenders will tend to lose out while borrowers and investors benefit from low interest rates.
Low interest rates reduce their monthly mortgage payment, it also mean more spending money in consumers' pockets. Consumers may be willing to make larger purchases and will borrow more, which spurs demand for household goods. It also helps businesses make large purchases and boost their capital.
Drawbacks are low interest on savings and investments.
Also, low borrowing rates might increase the amount of debt people are willing to take on, which could be a problem for both banks and consumers when interest rates begin to rise.
Cheap money, more debt, declining productivity – how, again, did this formula translate into a stronger, leaner, more competitive America??? It didn’t. It translated only into more debt for most Americans and for the American government, and more wealth (an obscene amount of wealth in fact) for a handful of America’s ruling class, those in banking, finance, and insurance especially, but also in housing and energy.
ZIRP is the biggest scam ever perpetrated on American people.
what is the real reason?
does it really help anyone?
buy a house,buy a car ,r people who have credit card debt dont see any savings.
Fed buying treasury instruments every month?to keep rate low??
Or are we afraid if rate rises,foreign money will come in ?
what is the difference if rate is zero vs rate is 2%?
ZIRP is unmitigated theft from the public in favor of the elite who have lost their conscience.
ZIRP = Socialism for the Rich
Yes , zero percent auto loans , low mortgage rates , zero percent credit cards , low credit rates and low rate loans for those who start business , lower prices on goods since company financing is less , the incredible growth on 401k s and iras are all stealing from the public
Yes , zero percent auto loans , low mortgage rates , zero percent credit cards , low credit rates and low rate loans for those who start business , lower prices on goods since company financing is less , the incredible growth on 401k s and iras are all stealing from the public
You are correct. Piling up the debt to finance all this bonanza is not stealing from the public.
It is stealing from future generations who will have to eventually tighten their belts to pay for all the freebies we enjoy. Or maybe it is us (the public) who will have to tighten our belts starting ... I donno ... next year or 3 years from now or 5 years from now.
Unless you believe this money printing to support the financial pyramid can last forever. Then you are right, it is not stealing. It's a miracle. Alleluia.
You are correct. Piling up the debt to finance all this bonanza is not stealing from the public.
It is stealing from future generations who will have to eventually tighten their belts to pay for all the freebies we enjoy. Or maybe it is us (the public) who will have to tighten our belts starting ... I donno ... next year or 3 years from now or 5 years from now.
Unless you believe this money printing to support the financial pyramid can last forever. Then you are right, it is not stealing. It's a miracle. Alleluia.
all that is paid is interest on the deficit . just as i am paying the lowest taxes of my life today so will other generations more than likely. unless we collapse , then game over anyway
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