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8% interest rates would lead to an explosion in the national debt and a worst recession than the last one. I have aligned my interests with Wall Street's. That is what everyone should do.
That advice works until it doesn't. See Great Depression.
Thanks for making my point by having to go back 80 years to find the one anomaly.
Quote:
Originally Posted by Goinback2011
2008-9?. Recovery via printed money to make a black president appear competent. Consequences to come.
Holy cow........The crash had NOTHING to do with Obama. Everything that created the crash was the result of the previous 20 years. I actually condemn Obama for his actions to re-inflate the markets but not for the crash. Obama is a failure because he did the exact opposite of what he promised but Bush and Clinton are responsible for the crash.
But yet, the crash is an example which I am not sure why it wasn't mentioned to begin with. One can say they are better off now BUT only because of the actions of the Fed/Gov that has done a lot of harm to the country.
I've been reading about all these consequences to come for the last 40 years.
They are happening now. From the murders of police officers, to Trump, to the continued loss of jobs, 20 trillion debt, the wars, growing food stamp roles, to much bigger actions to come, ie: China's and others current actions to undermine the dollar.
Saving money is a lifestyle choice that can be done whatever interest rates are at.
Unfortunately, living within your means is a skill few master.
The US saving rate has been historically dismal compared to most of the developed world, despite those countries having higher income taxes:
70's- 9.6%
80's- 8.6%
90's- 5.5%
00's- 5.5%
Current:5.3%
In contrast, the savings rate in Japan at peak was nearly 50%.
In contrast, the US people have higher consumer debt, live in larger spaces, eat more calories and possess more stuff than than the people in the rest of the developed world.
B.B. just started the conversation but it's more complicated that what he noted.......would at least some be able to save if we raised rates?
For decades workers set up a retirement that depended on interest income. When that income became zero they went back to work. They took the jobs that others would have landed.
One can argue that they can invest in the markets, which is of course what the government and the markets want but people at this age no longer trust the markets and they can not afford to trust it either.
It's getting so bad that we are now seeing the rumors about negative interest rates. The markets are so desperate for anything to keep them inflated. In places closer to doing this the people are not investing. They are simply pulling their money.
By rewarding the corrupt the last 8 years we have created an untrustworthy system. It's not going to end well.
We're already at the lowest home ownership rate since at least 1965 (which is as far back as the Census Bureau has tracked it). With the student loan debt and, in many cases, late start to getting real careers for millenials, it would plunge even further if that happened.
The median age for first marriages in the US in 1959-60 was 22.8 for men and 20.3 for women.
The median age for first marriage has been increasing ever since. This is consistent with trends throughout the developed world, including those countries that pick up the tab for college for " qualified" students and thus no student loan debt load.
Most parents would be far from thrilled if their sons/ daughters were to marry at ages 22 and 20.
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