I agree it’s not that way any longer.
To be honest, I’d like to be able to save up money and higher interest rates would help.
Your money is worth less and less, and it’s just not growing to keep up.
Both you and Entropy touch on a sore spot.
If you raise interest rates to 7%, doesn’t that raise the costs of just about everything by 7%?
Doesn’t it kill business, kill borrowing, kill your ability to afford things?
You raise interest rates on homes by 7%, and there goes ones ability to purchase a home. Who could afford the payments. Each percentage rise is a hundred or two in increased loan payments.
Do you guys have a solution to this?
I would NOT support 7%, not even 5%, not even 4% FED funds rate based on current inflation. 3% sounds about right at this juncture considering everything.
In my opinion, for the economy to stay healthy and strong, it needs capital formation. With zero rate policy (ZIRP) the money goes to buy hard assets instead of investing in productive main street economy.
Market is still overvalued based on real inflation rate and historical data going back nearly 100 years. Gravity is the real cause for the correction, everything is just excuses to act on it.
http://www.multpl.com/shiller-pe/
There really isn’t a solution that does not have pain. The bad news is that you can’t kick the can down the road forever. The good news is that you can kick the can down the road a long, long, long time.