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Valued Social Butterfly
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Re: ARE LOW INTEREST RATES BAD FOR GROWTH?

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NOTHAPPENING  said  You are correct in your analysis - you should be saving for the next time we get Democrats elected when the next downturn actually occurs where the sky is the limit when spending other people's money!
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FOR YOUR ENTERTAINMENT with some LAUGHS & TRUTH  
https://www.youtube.com/watch?v=gbiC9W4jVKE

HO HUM --- A  die-hard republican always refuses to accept facts.  " Unions built America's middle class, and unions will rebuild America's middle class which is not doing so well.  .    Corporate interests might try to shut them down  and break us apart, but we're not going anywhere."  (Liz Warren)        


These 5 charts prove that the economy does better under ...
www.salon.com/2015/12/28/these_5_charts_prove_that_the_economy_does_better...
These 5 charts prove that the economy does better under Democratic presidents Conservatives love to tout their economic bona fides. But the data reveal a far different story

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Regular Social Butterfly
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Re: ARE LOW INTEREST RATES BAD FOR GROWTH?

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Low and negative interest rates are a clever way to tax the savings of affluent Boomers ......   Right now, there is a high % of our population in the "boomer" category and right behind us are the Millennials .....  Boomers have money and the kids are trying to save some.

 

By taxing old folks, and forcing college kids into debt, the obscenely wealthy can avoid taxation on themselves while enjoying this "booming economy".

sr41
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Valued Social Butterfly
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Re: ARE LOW INTEREST RATES BAD FOR GROWTH?

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1.   Low interest rates, at least as low as they are today put the economy at risk.   If there is a recession, then the Fed has no where to go to ease access to money.     Apparently some seem to forget the interest rate prior to the GWB recession.    Interest rates (yes even globally) have never recovered.    

 

2.   Apparently the ignoble donald supporters are willfully blind as to the massive growth in debt since donald has been in office.    He is giving away the government rule to business and billionaires.    The inversion rate for Tbills is what to watch.    When long term Tbills have lower yield that 1-2 year Tbills, people should recognize that the economy recession is a serious concern by economists that are not beholden to donald.  

PRO-LIFE is Affordable Healthcare for ALL .
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Treasured Social Butterfly
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Re: ARE LOW INTEREST RATES BAD FOR GROWTH?

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I think Richva explained it well.

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The general rule with interest rates is when an economy slows down, the Fed lowers rates to encourage borrowing, which in turn will encourage spending.

If the economy is heating up too much and causing inflation, then the Fed will raise interest rates.

 

Here's a question - If our economy is doing so well, why would the Fed lower rates?

 

Since the Great Recession, interest rates have remained low. That's eleven years.

 

I'll bet this has something to do with it: Lower interest encourage people and businesses to put their money in the stock market, and the Market goes up.

 

When interest rates are high, people park their money in a safe place and collect interest. 

 

On top of that, even though the Fed has unloaded some of those toxic assets from the 2008 Financial Crisis, I hear they still have quite a bit left on their books. The Fed would still like to remove all of them from their ledger, but they're mostly mum about that.

 

Also, income inequality is not good for any economy.

 

wall street jobs.jpg

 

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Valued Social Butterfly
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Re: ARE LOW INTEREST RATES BAD FOR GROWTH?

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@ManicProgressive wrote:

This is outside any of my expertise. I’m bad at financial stuff. But what I am good at is saving money.

 

So I don’t know why, during these “booming times,” our national personal savings rate is about $4,500 a family. We should be maxing our savings right now, right? Preparing for the eventual downturn...

 

But if people aren’t doing that, and they are spending....what’s going on? 


You are correct in your analysis - you should be saving for the next time we get Democrats elected when the next downturn actually occurs where the sky is the limit when spending other people's money!

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Treasured Social Butterfly
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Re: ARE LOW INTEREST RATES BAD FOR GROWTH?

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Low interest rates are great for TODAY'S  growth but at the cost of tomorrow's growth.  You run up your credit card charges today and the retailers are all happy. When your bills come in and you only spend on basics, they are not so happy. 

 

Yes, and when interest do go up, people will be stuck with debt with higher interest.

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Treasured Social Butterfly
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Re: ARE LOW INTEREST RATES BAD FOR GROWTH?

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This is outside any of my expertise. I’m bad at financial stuff. But what I am good at is saving money.

 

So I don’t know why, during these “booming times,” our national personal savings rate is about $4,500 a family. We should be maxing our savings right now, right? Preparing for the eventual downturn...

 

But if people aren’t doing that, and they are spending....what’s going on? 

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Re: ARE LOW INTEREST RATES BAD FOR GROWTH?

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Low interest rates are great for TODAY'S  growth but at the cost of tomorrow's growth.  You run up your credit card charges today and the retailers are all happy. When your bills come in and you only spend on basics, they are not so happy. 

 

 

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Valued Social Butterfly
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ARE LOW INTEREST RATES BAD FOR GROWTH?

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Are Low Interest Rates Bad for Growth? - Bloomberg
www.bloomberg.com/news/articles/2017-06-06/are-low-interest-rates-bad-for-growth
Low interest rates are supposed to accelerate economic growth. But if central banks cut rates too much, they could actually slow the economy. So says a counterintuitive theory that's making the rounds in academic and banking circles.

I just read where 1.6 trillion dollars is the amount of college debt in the USA. and number of people with some debt totals 44 million.  

The debt is growing at a crazy rate of $3000 a second or $10 million a day. 

$260 billion is owed by people over age 50 or older and $80 billion is owed by people over 60.  

Perhaps, some of you remember when you got a discount if you paid cash for a large item or when you SAVED money to pay cash....when a savings account might even pay 5% interest...   This is a credit based economy---convince me otherwise then.   

 

 

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