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| 06 Jul 2013 07:42 PM |
| The congress is crying and is desperate of tax and interest money to buy new clothes, cars, private mansions, and other expensive stuff. |
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pepper0
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| 06 Jul 2013 07:43 PM |
The Federal Reserve is raising interest rates.
Have you noticed that the current interest rate is like 1%
They need to rise in order to bring down unemployment. |
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gamert7
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| Total Posts: 4986 |
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| 06 Jul 2013 07:45 PM |
| Actually the current interest is virtually 0. |
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| 06 Jul 2013 07:45 PM |
| I don't remember the interest rates as 1%, I remember them as 3% though. |
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pepper0
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| 06 Jul 2013 07:47 PM |
| Its supposed to be like 3 or 4%, but its not. |
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gamert7
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| 06 Jul 2013 07:48 PM |
| http://www.aei.org/outlook/economics/monetary-policy/federal-reserve/the-pain-of-zero-interest-rates |
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pepper0
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pepper0
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| 06 Jul 2013 08:02 PM |
| ...But there is a catch. The Fed is being very careful in raising interest rates because there is a bond bubble that may grow way out of control if interest rates are risen too quickly and without warning. |
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gamert7
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| 06 Jul 2013 08:15 PM |
| There is another catch - Alan greenspan raised them slowly and we had the housing market collapse so they can't be raised. |
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pepper0
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| 06 Jul 2013 08:18 PM |
| But that was also combined with the bush tax cuts |
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gamert7
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| 06 Jul 2013 08:53 PM |
| Pepper, the tax cuts didn't play into effect. The economy 'got addicted to cheap money' and trying to remove that cheap money is like going through rehab after you did drugs. |
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pepper0
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| 06 Jul 2013 09:02 PM |
| They did go into effect. That combined with the interest rates at the time caused the bubble to burst. |
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gamert7
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| 06 Jul 2013 09:07 PM |
| Pepper, I know they were in effect but, I am saying they don't play into the situation. We took the cheap money away so by effect we had a crash. |
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Yobobo10
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| 06 Jul 2013 09:08 PM |
PHILISTINE
IT'S 0.25%
NOT THAT DIFFICULT GOOGLE |
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pepper0
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| 06 Jul 2013 09:14 PM |
I see.
Not only that, Greenspan took a big risk in having too much trust in the banks to make loans which would likely not be paid back. |
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gamert7
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| 06 Jul 2013 09:21 PM |
| Well not only that but, the banks made liars loans. Which is where the information on the consumers behalf is true but, they lied about the grade of the loan and the ability of the consumer to pay back. Hence why terrible loans were being rated tripple A. |
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pepper0
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| 06 Jul 2013 09:26 PM |
| Now I feel bad for Greenspan. Just one little mistake, boom all goes down the drain. |
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gamert7
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| 06 Jul 2013 09:44 PM |
| That is why you do not try to have a centrally planned economy nobody is smart enough to know when to do what. |
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0Z0NE
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Yobobo10
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| 08 Jul 2013 12:20 PM |
"That is why you do not try to have a centrally planned economy nobody is smart enough to know when to do what."
UAE is doing so badly with that. |
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| 08 Jul 2013 01:23 PM |
There is another catch - Alan greenspan raised them slowly and we had the housing market collapse so they can't be raised. ------------------------------------------------------------------------------------------------------------------------------------ That is exactly why the government shouldn't raise interest rates. The government cannot create economic growth.
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gamert7
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| 17 Jul 2013 09:47 PM |
| - No it can create market growth. The problem is that the market gets addicted to cheap money. So like going to rehab you've to detox and that hurts a lot of people. But, ultimately it is better for everybody, |
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STE4K
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| 17 Jul 2013 11:49 PM |
| Dude I made like 1 cent in interest this month, and I have a lot in my account. It is pretty much 0. |
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gamert7
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| 19 Jul 2013 05:20 PM |
| STE4K I already said it is virtually 0. Also yes low interest rates hurt the saver so it encourages people to be fiscally irresponsible. |
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