Treasury Sec. John Snow: US interest rates 'to rise soon'

Times of London ^ | October 20, 2003 | Anatole Kaletsky

[hopespringseternal]

Maybe you should start with a cheaper house. I always want to get something I can afford, most young people like to start at the top.

The irony being that young people with children actually have a need for a larger house than older people with none at home.

Housing is a funny kind of a thing compared to most spending. It isn't exactly an investment, since you pay so much in interest. It is a need and a cost, but the equity you build lets you treat it somewhat like an investment.

I know lots of folks who had a huge house they could "barely afford" when they were young, but then sold the house when they retired and bought a much smaller one and put a nice infusion of cash into their golden years.

Not exactly sound investment advice, maybe, but so often "sound investing" boils down to absurdity. It is some broker telling people, "Live on beans and rice in a one room shack, buy 20X your salary in insurance from me and give me the rest to invest for you. Someday I will give it all back and you'll be rich."

[blackie]

Gee, do you mean everything isn't going in the toilet as the democRATS would have us believe. :)

The evidence is there ~ Too bad that the pro-terrorist democrats and their left-wing lackeys in the media are so brain dead!

[mlmr]

Pandering to the elderly? How about calling it rewarding those who spent their whole lives paying their bills, raising children, working hard, and saving for their futures with at least a 5% interest rate on long term CDs?

How about giving middleaged middleclasss families with children a break?? Interest rates have been historically low, Many of the elderly had at four and three percent house mortages in the forties and fifties. I float the boat for SS. I could use the break.

[grania]

How about giving middleaged middleclasss families with children a break?? Interest rates have been historically low, Many of the elderly had at four and three percent house mortages in the forties and fifties. I float the boat for SS. I could use the break.

I'm in my late 50s. My generation didn't get a tax break, didn't get those low mortgage rates, and didn't even get child care subsidies for working parents. You don't "float the boat" for SS...it's floating just fine, and will be for some time to come, unless people actually buy into the argument that they'd be better off working the stock market for their pensions.

You think it's expensive now? What about all of the people who would lose everything in the stock market because they'd make bad decisions. The way to keep costs down isn't to impoverish retired people, it's to eliminate any kind of subsidy of prescription drugs or insurance policies for them. The costs would go right down if people actually had to think about paying for the over-drugging of elderly America themselves.

[mlmr]

Well, if you have retired early and are living off your interest, that is your issue. You should have chosen a better portfolio. You may have missed the great interest rates of the fifties and early sixties but many of the SS receipents have not. As far as people who lose their pensions becasue of low interest....well they would have to use the traditional methods of making it through retirement, relying on their children and cutting back their lifestyle. No more two homes....awwww. No more trips to Atlantic City.....awwww. No more cruises....too bad. No more endless golf games.....tough.

[grania]

No more two homes....awwww. No more trips to Atlantic City.....awwww. No more cruises....too bad. No more endless golf games.....tough.

You are so into stereotypes. Most of the people I know live in (and own) the modest houses they raised their children in. Most take one or two off-season vacations they can afford each year. Golf games??? Isn't that where yuppie CEOs decide how to screw pensioners? (see, I can stereotype, too)

Now, you just go back to your mini-mansion and complain how the reason you can't afford that, your three cars, your $50,000 mastercard debt and your kid's private schools because some selfish retirees actually want enough money to survive.

<^..^>

[thefamous]

The Federal Reserve - What Is It? Who Is It?
http://www.freerepublic.com/forum/a3b13c8401f8f.htm

[riri]

Well, I went down to the local supermarket to get this year's flu shots since my pediatrician was not going to get them in until November. I live close to a pretty affluent senior golf community and since it was a weekday it was me, my kids and about 25 seniors.

I had to dish out $60.00 to get the shots. They were falling all over themsleves picking through their various forms of health insurance, supplements, etc. to get to the medicare card to get their shot for free. Then they got in their Lincoln's and drove home to their $250,000 winter home on the links.

Burned my butt.

[mlmr]

I am happy to see people survive. That is what I am doing. no minimansions here. Most of the elderly that I know both relatives and acquaintances are living it up with all the above....and they receive a check from me every month. I couldn't afford to put my children in private school. I am working full time and homeschooling four children full time. We are managing....but it is difficult. I sure could use that money I put into the ss coffers each month for grandpa to have his next tee fee.

[grania]

I had to dish out $60.00 to get the shots. They were falling all over themsleves picking through their various forms of health insurance, supplements, etc. to get to the medicare card to get their shot for free. Then they got in their Lincoln's and drove home to their $250,000 winter home on the links.

One of my earlier posts on this thread I wrote that I don't think anyone should get subsidized health care, either directly or through government paying insurance. Prices would go down pretty quickly if people actually had to think of the value of their medications. Burns my butt, too, but I'm actually glad that the health-store stuff I prefer isn't covered by the government or insurance. Why? Coverage is control.

[grania]

We are managing....but it is difficult. I sure could use that money I put into the ss coffers each month for grandpa to have his next tee fee.

Social Security isn't really paying for the tee fee. Social Security is meant to be a safety net so Seniors can survive. If people have supplemental income from saving, a part time job, or investments, good for them!

[RightWhale]

It was the decline in interest rates that led to the weakening economy. Interest rates should be higher, but not too high as they were under Pres Carter. With higher interest rates, the economy should take off like a rocket.

[steve50]

Going to have to run to the store tomorrow. The fun and games are just starting and we have a front row seat. Sit back, relax and enjoy the show. Richard W

You sound like the Bescemi(?) character in Armagadden. Think it's time to "Embrace the horror)?

[arete]

You sound like the Bescemi(?) character in Armagadden. Think it's time to "Embrace the horror)?

The hubris and arrogance of our leaders in their efforts to force their own "sqaure peg" thinking into a round hole has put us all at risk, like it or not. I've done what I can to place myself in a defensive postition and now it it time to sit and watch it all play out.

Richard W.

[mlmr]

I think it is great for people to have great investments. I don't think that people with great investments should be talking money out of the pockets of their chidlren and grandchildren. I am tired of providing a security net to people who don't need one..... That was the generation that expanded social security instead of making hard choices and diffenent programs.