The real money is in lending $$$ to the NYT @ 18%.
Posted on 03/11/2012 7:42:44 PM PDT by Pelham
STOP your bellyaching.
That was the message delivered last Thursday to Americans who today make almost nothing on the savings in their bank accounts.
It came from Sarah Bloom Raskin, an insider at the Federal Reserve. Ms. Raskin, one of the governors on the Fed board, made the usual disclaimer that her comments reflected her own thinking. But Fed watchers said her remarks probably mirrored views inside the central bank.
The issue — as anyone looking for income-producing investments knows — is that the Fed drove down interest rates to almost zero to shore up big banks and an economy that those banks helped drive off a cliff. Now savers, who did nothing to create the financial crisis, are being punished.
This is one of the more troubling paradoxes of the Fed’s rescue of the financial system. And, according to Ms. Raskin, it is likely to continue for some time.
So suck it up, America: If it’s good for the financial system, it’s good for you.
Yes, Ms. Raskin, who delivered her message during a speech in Westport, Conn., nodded at how low rates put pressure on savers. But she quickly extolled the advantages that rock-bottom rates offer to ordinary Americans.
“Many households are benefiting from the low level of interest rates, and some critics of the Federal Reserve’s accommodative monetary policy seem to minimize this point,” Ms. Raskin said, according to prepared remarks posted on the Fed’s Web site. “Purchases of motor vehicles and other household durables can be financed more cheaply, and in many cases, households have been able to refinance their mortgages into lower-rate loans, freeing up income for other uses.”
APPARENTLY, Ms. Raskin hasn’t tried to refinance a home mortgage lately. I have, and the process was labyrinthine, glacial and exasperating. Putting potential borrowers through the
(Excerpt) Read more at nytimes.com ...
The banks have made it very difficult to get a loan.
“The Fed has been following this plan for more than three years now. Yes, we are seeing some improvements here and there. But the transfer of wealth from savers’ pockets has been immense. And with the price of gasoline and other goods going up, the vise is tightening.”
“She blithely assumes that everyone who could refinance their mortgages at current interest rates has done so,” Mr. Todd said. “She ignores effects of credit scoring and outrageous fees banks are charging for those refinancings. I invite anyone who will accompany me to visit the local branch of any bank in Cleveland and to inquire about what is required exactly to be able to refinance at the currently advertised rates.”
My brother bought a home in San Diego county and he was given the loan. But the bank screwed up when they forclosed on the home.So, the paperwork has to be done all over again.
I think it depends on your standing. A co-worker told me of an illegal Mexican he knows who just got a house. He claimed your tax dollars paid for the down. Probably some left over too, for to make the payments. Easy pleezy.
The bank improperly forclosed on the home he is purchasing.It was clearly their fault.
Prayers offered up to the Lord that He look down and remember those of us who are in financial hardship due to the fact that people we have not voted for, the Fed, have radically changed the concept of America and how we are taxed.
The real money is in lending $$$ to the NYT @ 18%.
Low interest rates and theft threw inflation. That is how they will destroy the producers.
If you have any credit card debt, you can save 18% or whatever by paying it off. This is the best investment in America right now for the majority of people.
I got five cents interest posted this month to a bank account that I keep about a thousand or two thousand in most of the time.
If you don’t owe money you are losing money these days.
They aren’t loaning money because there is no money in it now.
We are in worse than stagflation. We are in deflation that has been ongoing for almost a decade now.
Inflation, Banking, Debt and John Maynard Keynes
John Maynard Keynes (pronounced “Kanes”) was a self-avowed socialist who served as economic advisor to presidents, prime ministers, and even dictators. Keynes explained the negative effects of inflation in his book, “Economic Consequences of the Peace.” On page 235, Keynes wrote:
“By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some. The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner that not one man in a million can diagnose.”
John Maynard Keynes was called “the father of deficit spending.” He advocated the absurd notion that governments could spend themselves into prosperity by going into debt. Keynes’ tragic economic theory actually helped conceal the inadequacies in the intentionally fatally-flawed Federal Reserve Banking System.
What we're witnessing here is the financial floundering of a dying empire.
“We are in the midst of a stealth wealth transfer of astronomical proportion that will become a direct wealth transfer if Obama gets re-elected.”
You underscore how serious this is; there is nothing “stealthy” about it when less-qualified minorities were LEGALLY AND PUBLICLY given preferences over “white” men for jobs, college seats, mortgages (in which banks were forced to lend to unqualified minority borrowers, then sued for “taking advantage of them”), and groups like the “Congressional Black Caucus” were allowed to organize without a “white” counterpart.
This has gone on for decades, and has made it clear that the Europeans who built this country are persona non grata and legally “less than” the ethnic minorities that enjoy a standard of living here much higher than they’d have in their places of origin.
“Low interest rates and theft threw inflation. That is how they will destroy the producers.”
This is also how we are reducing the American standard of living to meet Red China’s rising standard; we are being reduced to peasants, with few voices being raised in protest.
“The banks have made it very difficult to get a loan.”
They know that the unemployment situation will get worse (it IS getting worse), and that it is difficult for a nation of Wal-Mart greeters and fast-food servers to repay loans.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.