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Thread summary:

Federal reserve cutting rates to historic lows, economy not good for savers, rate cuts cause savings account to go down, cost of living higher than interest rate on savings account

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Old 12-14-2008, 06:10 PM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,474 posts, read 14,161,226 times
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The Associated Press: Fed mulls interest rate cut, maybe to all-time low
How the Federal Rate Cut Affects Savings and Mortage Rates | Millionaire Money Habits

Every time they've cut rates, the interest rate on my HSBCDirect saving freaking tanks. ARGH! Why does the Fed hate people who save money? I know, I know it's to "juice" the economy. Rate cuts take months to have an effect. HSBC takes 4.2 nanoseconds to decrease my rate of return. Where's the love for the savers? Banks get money for (almost) free, use it for takeovers or simply hoard it. Savers get screwed with a lower rate of interest than the cost of living. WTF?

COLA - 5.8 percent
Latest Cost-of-Living Adjustment

HSBC - 3.0 percent.
Online Savings Account, Learn More, HSBC Direct

Oh, in the process of researching this post I hit this gem of an article.
Fed cuts rates by*a*half*point - Sep. 18, 2007
I read it and laughed...a few times. It's full of gems...really hilarious gems.

"We're having champagne and cookies," (Chief Market Analyst) Skrainka said.
"Rates are nowhere near the 1 percent historic lows they were at in 2003 and 2004," said Robbert Van Batenburg, head of research with Louis Capital Markets, a broker dealer based in New York. "The Fed has the luxury of leaving the window open for more rate cuts."
***********************
Not any more they don't, chum. They're riding on 3 bald spares and a 4th full of Fix-A-Flat.
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Old 12-14-2008, 06:37 PM
 
19,083 posts, read 20,652,259 times
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If you think about it, most of your money is actually "making" money in the bank compared to stocks, mutual funds, IRAs... they are losing money but a savings account is actually making money, albeit, a lot less than it has been previously... however even given all that, this is a "debt" economy, it runs on people getting more and more into debt... the cycle is having problems because the people who "use" this debt cannot get any more debt (they are losing homes, cars, property, etc) and without them the engine dies which is what is happening to the economy... we should have NEVER been a debt society but Big Business and Big Government (the primary BENEFACTORS of a debt society) wanted it... and people were idiots to vote away their country by voting for them for a couple hundred dollars...
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Old 12-14-2008, 07:03 PM
 
Location: Great State of Texas
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And in a deflationary spiral even 1 or 2% is a plus.
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Old 12-14-2008, 07:17 PM
 
Location: Los Angeles Area
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Why would the FED want you to save right now? Saving is deflationary.
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Old 12-15-2008, 01:16 AM
 
1,566 posts, read 2,841,259 times
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Quote:
Originally Posted by evilnewbie View Post
If you think about it, most of your money is actually "making" money in the bank compared to stocks, mutual funds, IRAs... they are losing money but a savings account is actually making money, albeit, a lot less than it has been previously... however even given all that, this is a "debt" economy, it runs on people getting more and more into debt... the cycle is having problems because the people who "use" this debt cannot get any more debt (they are losing homes, cars, property, etc) and without them the engine dies which is what is happening to the economy... we should have NEVER been a debt society but Big Business and Big Government (the primary BENEFACTORS of a debt society) wanted it... and people were idiots to vote away their country by voting for them for a couple hundred dollars...

with the market down yes, in the long run no
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Old 12-15-2008, 02:55 AM
 
12,869 posts, read 13,431,997 times
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Quote:
Originally Posted by Humanoid View Post
Why would the FED want you to save right now? Saving is deflationary.
the fed is an international banking cartel which uses inflation and deflation to whipsaw the average bystander out of their savings. one economic machination is not more favored over the other when the goal is to ensure that the public's savings ends up in the accounts of the shareholders of the federal reserve system.
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Old 12-15-2008, 06:32 AM
 
19,083 posts, read 20,652,259 times
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Quote:
Originally Posted by bxlefty23 View Post
with the market down yes, in the long run no
Yes, and a smart person wouldn't leave his/her money static... so what if the market is down, you are earning money while its in a savings account... once the market starts to pick up again switch over to stocks and bonds.. so it works in the short term AND the long term... that's how the rich people play...
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Old 12-15-2008, 07:05 AM
 
Location: Londonderry, NH
41,478 posts, read 52,795,393 times
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Just what is so frightening about a deflationary economy? I never expected to make any money on my house and I expect to stay there for a lot longer. My mortgage is nearly paid. I have a secure job and would not mind if prices of food, energy and gasoline fell through the floor. I actively want the financial, investment and real estate speculators to go broke as individuals and as a system.

I would have preferred a system where I could have put 15% of my wages in a tax free guaranteed 4% compounded savings account instead of having to risk them in an IRA. My IRA got hammered but still has done better than any savings account.

The point of a FIRE economy is to force the masses to borrow money so the Finance, Investment and Real Estate boys can make the profits at the masses expense. Well the FIRE boys played money and lost it but somehow they kept their own money intact. We need a revolution that will prevent this from ever happening again.
[SIZE=3] [/SIZE]
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Old 12-15-2008, 08:43 AM
 
28,905 posts, read 47,931,320 times
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Well, when you realize that our entire fiscal policy is based on deterring savings, when you realize that our entire economy is based on people buying Christmas presents, when you realize that the path to wealth has become dependent on your house appreciating 8-12% a year, then you begin to understand.

I am not paranoid. I don't believe in black helicopters or internment camps being set up in Alaska. At the same time, I think the government of this country is dead set against ordinary Americans accumulating wealth the old-fashioned way.
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Old 12-15-2008, 09:13 AM
 
1,772 posts, read 4,073,745 times
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It bothers me that a critical view of the fundamental infrastructure of our economic system is viewed as a conspiracy theory. I argue people much rather pawn it off as such than admit they're ignorant to their own economic dispossession. The system needs to be overhauled. This is not the first time in our country's history where we are faced with the ransacking of wealth by the hands of the banking plutocracy (Andrew Jackson and and the Bank of the United States anybody?), we just have been complacent for a long time, circa 1913. The american public is literally one big gerbil, spinning their economic wheels, working their tails off to come up short under a system that's organically designed to strip them of long term wealth. But watching a ticker and daily dead cat bounces on a TV screen seems much more valuable and objective to said populace...

I have an HSBC account and I know I'm not going anywhere with the ever tanking APY. I don't go and put it all on the market like the bankers want me to, I rather fight to change a system where my livelihood won't be dependent on a 10% appreciation of a roof with four walls as somebody else alluded to before, and a bunch of "stocks" from the institutions managed by the same oligarchy. Of course, I might as well put it on my Santa list cause in the absence of mass organized political unrest that could forcebly change these oligarchic policies, the govt ain't going to voluntarily repeal the federal reserve act and do away with fractional reserve banking and dispossess the banking class of their pyramid scheme.....
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