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TD made the money. You should ask the flatline question to the market, if TD needed additional balances they’d pay more, if it’s not needed you pay less. It’s not manipulation, just business.
Banks make their money on net interest and they need deposits to loan money. If they aren’t growing the loan book they don’t need more cash balances or if cash balances are growing faster than loans, you cut the rate you are paying on cash. On the loan book if you want to slow down loan apps you raise rates. It’s banking
It's not the market it's the Fed. Banks still make plenty of loans but they don't need depositor cash to do it. The Fed is supplying nearly zero interest rate money. The question remains...why?
I am not spending down my money. I don't even need it. Haven't touched it since I retired and don't need to. It's just a paper statement to me. But to me it's as big an anomaly as if my house was worth almost nothing.
Saving and earning interest has been practiced by generations of middle class Americans. But last year it was turned on it's head. I'm not whining I'm asking why this big change.
I'm not asking the market. I'm asking you. Not for a lesson on banking theory, but why do you think this Fed policy has become so extreme.
With interest near zero, you think you can live/retire by just sticking your money in the bank? Apparently suggest owning no real estate so rent for the rest of your whole life with no ability to control cost.
So how do you reconcile these statements? Apparently you are just looking to spend down assets and ignore that inflation is killing your savings and amount living on - this is a dangerous way to live.
I don't need to spend any assets. I'm just wondering why the Fed put this in motion. Who benefits?
At this stage explaining this to those so anti investing is wasted words .
By the same token as he wants to be able to tell us I told you so in the proverbial crash , we don’t want to hear him whine about no interest while other assets have grown nicely
I don't invest because I've seen two market crashes in my lifetime and I don't have time to recover if that happens again. Thanks for your suggestions on getting savings bonuses, but my question was never on how do I get more interest, it was why is this happening.
The Fed has created this inflation we're seeing now.
Not by failing to raise interest rates, but due to the trillions of dollars that they've been lending to their buddies at the big banks and investment firms.
Look, this is all planned.
These people work in a completely different reality than you and I. The goal is by 2030, you'll own nothing and like it. Real estate is being bought up by investment firms with money created out of thin air by the Fed. The plan is to control everything; it's the only way modern monetary theory can work.
Look up how modern monetary theory works; that's the plan.
Interest rates can't be raised high enough to pull the trillions of dollars back out of the economy. The only thing that'll save the US is if all the other world currencies crash first and the dollar replaces them. Which, I think, is part of the goal.
Aka the "Great Reset"...
The elites are open stating what their plans are. And yet we STILL have people arguing otherwise
I don't need to spend any assets. I'm just wondering why the Fed put this in motion. Who benefits?
Then why do you have these assets and need to protect them so much that willing to let them keep loosing value.
The Fed is not causing the issues, they are trying to keep things in check while the legislature & the administration keeps wanting to spend money it doesn't have. They want to put programs in place to win votes and really don't care about the consequences - the politicians are who benefits by controlling these new programs - most people have yet to realize that everyone is really paying for these programs through inflation increases. It is MMT put into practice - essentially proving it doesn't work.
Quote:
Originally Posted by bobspez
I don't invest because I've seen two market crashes in my lifetime and I don't have time to recover if that happens again. Thanks for your suggestions on getting savings bonuses, but my question was never on how do I get more interest, it was why is this happening.
Whether you need to spend assets or not - it should be of concern that their value is eroding significantly - there are ways to keep up with inflation without much risk on the downside. Thinking that some interest bearing account is no risk is a fallacy - it is most assuredly bearing the real risk of eroding value.
In one sense you are winning the battle by not seeing a big drop while losing the war due to the certainty of a slow attrition of value.
I don't invest because I've seen two market crashes in my lifetime and I don't have time to recover if that happens again. Thanks for your suggestions on getting savings bonuses, but my question was never on how do I get more interest, it was why is this happening.
What a bunch of clueless clowns without any kind of wisdom. For 21 years now they have been FAKING economic growth and creating economic CANCERS or asset bubbles. Yes, since 2001 when business cycle ended and when they should start raising interest rates. Instead of facing the facts in 2001, that the economic expansion had ended the FED decided to fight this logic by repressing interest rates, instead of raising rates. Now when clearly they have lost control of inflation those clowns are way behind the curve and the ONLY way you can KILL inflation at this point is with PAUL VOLKER STYLE rate increases. But the FED is afraid to even raise the target interest rate by 25 basis points. No leadership, just a bunch of clueless LOSERS and followers.
Never mistake evil for incompetence.
Everything the FED does and has ever done, is in service to the rich and powerful at the expense of the middle class. Everything.
That it has gotten more extreme since the .dot-com collapse in 2000 is simply because greed is at an all time high and the FED is not even trying to disguise their evil servitude to the rich and powerful anymore. It is just bubble/crash/print/reflate. And it is coming faster.
You know how this ends. It HAS to end with complete financial collapse, hyperinflation, and the destruction of the fiat US dollar.
And then people wonder why some come up with conspiracy theories that this is all by design to destroy the American economy.
You are right, I missed a decimal place. So if a person has $2 million in their savings account today they can live on a year's interest of $2K for about a week. That makes sense. The banks are doing us a great service. Back in 2006, I was 2 years from retirement and interest rates were 5%, so $2 million earned $100K per year. And costs of living have continually increased, so why is money in the bank now worthless? And why do people somehow think it's perfectly normal for savings to earn 1/10th of a percent in interest?
They have been trying to crush savers for a long time. They want to squeeze all of your money out of banks and into the stock market where they can pump and dump. They hope you will eventually get frustrated earning nothing in your bank account. They hope you will join the stock market bubble at or near the top, then when the Hedge Funds and financiers and billionaires dump their shares first, you are the one getting the haircut.
By design.
Quote:
Originally Posted by bobspez
I understand that when I retired my FDIC insured money market was earning $14K a year in interest. Last year the same balance earned $24 in interest. Doesn't that sound like a significant difference to you? My only question was why? Someone is benefitting from this enormous difference. So far the only beneficiary I can see is the banks. But I'm not an economist.
A big beneficiary is Wall Street, as frustrated people seek higher returns than they can get at 0.1% in the bank.
So I guess zero percent auto loans , cheap mortgages ,, refinancing for the masses down to historical lows as well as the drop in debt service costs didn’t benefit the masses ..most of whom have no savings to speak of to get interest on .
Pure nonsense in your post
Those who do have savings unless they are financially ignorant or believed their own bull were not hiding in cash …they benefited from the asset run up too …
So I guess zero percent auto loans , cheap mortgages ,, refinancing for the masses down to historical lows as well as the drop in debt service costs didn’t benefit the masses ..most of whom have no savings to speak of to get interest on .
Pure nonsense in your post
Those who do have savings unless they are financially ignorant or believed their own bull were not hiding in cash …they benefited from the asset run up too …
Yes but the low interest savings and market run up is their well designed plan to get your money. They can't get your money if it's in a savings account. Only if your money is in the market.
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