The spread between loan rates and savings rates is enormous. There are very few things you can make real money on. The stock market is a house of cards and it is only a matter of time before another bubble bursts like the sub prime mess of 08. Anyone remember the .com bubble? A lot of people lost their shirts on that one.
Agent, you wrongly assume there are still “markets” left. There are no markets, only central bank interventions that benefit the 0.001% that are connected to the fed spigot.
Funny how the media keeps pumping the joke of a stock market, trying to lure the poor retail investor back in for another sheering.
Well, Merrill Lynch got into a lot of trouble luring unsuspecting investors in. Just hang on, it will go back up. Oops, sorry you lost your investment. Put some more money in and we will go again.
Hey Tx, did you know our new Secretary of Defense was having so much trouble getting new recruits that he offered to pay student loans off if they signed up. He will take older recruits as well. I offered this to wonderful Stan to pay off his big loans, but he is too much of a dufus to take them up on it. Besides, he is a coward and unsuitable to fight for the country.
Who took over Student Loans Planet? If you said Obama, you would be right. When that bubble bursts, the taxpayers will be fleeced yet again. It will probably rival the sub prime mess in severity to the economy.
What he said is true, however the real reason behind low interest rates is the economy and excessive borrowing by our government. If interest rates were to rise to a normal level, our government and us would go broke. We are paying next to nothing in the rates, but still are shelling out close to $400 billion a year. Can you imagine if the spread of short term and long term bond yields went to 3 to 6 percent where they should be. How about $1.5 trillion a year in interest payments, heck we only take in $3 trillion. The existing bond holders having their bond values slashed by 50% at least, and the stock market totally tanked. Everyone knows this. It happened because 1/2 of the populous along with some corporations are on the take. Unfortunately many of us are too stupid and dishonest to stop all of the embezzlement.
“What he said is true, however the real reason behind low interest rates is the economy and excessive borrowing by our government. If interest rates were to rise to a normal level, our government and us would go broke. ”
Can you please explain how excessive borrowing by our government lowers the interest rates. I agree that a week economy is the primary reason for low rates but how exactly do you explain excessive borrowing lowers rates?
Actually, the Fed has kept the interest rates down artificially thinking that would help the economy. This economy has been in the tank for 6+ years and has not recovered from the sub-prime meltdown. 93 million unemployed or underemployed, 48 million on food stamps, record numbers of disability applicants, entitlements galore and a government spending half a trillion more than it takes in even though it is taking more in due to tax increases. This government has little spending discipline in both parties. A balanced budget with cuts in spending might help, but who is going to do that? They would rather keep re-arranging the deck chairs on the Titanic instead of showing courage and doing the right thing.
I don’t feel the least bit sorry for any of the major P&C, life or health carriers. They allied themselves with the progressives in cntral banking, Obamacare, macro-regulation and every other disgusting socialist scheme. They deserve to get clobbered-too bad they wil take all of agents (and insureds) with them. The business world is now a disgusting place where “free markets” are a dirty term and “fairness” is new gospel.
tiger, if insurance carriers can’t make investment income, they will tighten the screws, restrict writings and raise prices again in order to make an underwriting profit. We have seen it happen over and over.
Tiger, yes of course, all socialists are funded in their campaign financing by Wall Street financiers. It happens all the time, in every culture, as a fundamental part of history, that the financiers back the revolutionary Left. You may want to spend some time over the next 30 or 40 years doing some research so you can catch up with history as it actually occurs. In exchange for President Obama, President Bush before him, and President Clinton before that, allowing Wall Street participants who were party to the plunder to escape and evade criminal and civil prosecutions (other than the obvious tokens such as Bernie Madoff), many on Wall Street decided to financially back whomever in government would back Wall Street’s exploits. One hand washes the other. It is hardly socialism, but more accurately “complicitly cooperative corruption.” Please don’t confuse practical collusion with political ideology.
The reason for the lower interest rates is to try and keep the game going by the Federal Reserve Bank. If a family is spending too much and not saving but actually borrowing more each year, the bank they do business with will know this and cut them off. They will have to make economies, because it will be forced upon them. If they don’t they lose whatever assets they have and they will be essentially be bankrupt and destroyed. Our nation (us) through mostly liberal policies has been doing the same thing, only this is our nation. No one wants to see this go down. But it will eventually unless we get a hold of ourselves. That would be disastrous. Any money you have will be gone, especially if it is in Federal Reserve bank.
Lou, are you up for a good Thomas Jefferson quote? He was probably the wisest of the Presidents and it speaks to this issue.
“The two enemies of the people are Criminals and Government, so let us tie the second down with the chains of the Constitution so the second will not become the legalized version of the first”.
Of course, the current version we have in power are the first as has been shown in the past 6+ years.
The spread between loan rates and savings rates is enormous. There are very few things you can make real money on. The stock market is a house of cards and it is only a matter of time before another bubble bursts like the sub prime mess of 08. Anyone remember the .com bubble? A lot of people lost their shirts on that one.
Agent, you wrongly assume there are still “markets” left. There are no markets, only central bank interventions that benefit the 0.001% that are connected to the fed spigot.
Funny how the media keeps pumping the joke of a stock market, trying to lure the poor retail investor back in for another sheering.
Well, Merrill Lynch got into a lot of trouble luring unsuspecting investors in. Just hang on, it will go back up. Oops, sorry you lost your investment. Put some more money in and we will go again.
Next bubble is Student Loans… Mark it!!!!
Hey Tx, did you know our new Secretary of Defense was having so much trouble getting new recruits that he offered to pay student loans off if they signed up. He will take older recruits as well. I offered this to wonderful Stan to pay off his big loans, but he is too much of a dufus to take them up on it. Besides, he is a coward and unsuitable to fight for the country.
TX Agent,
I have been saying the same thing for at least the past 3 years. You can book it, it will be Student Loans without a doubt.
Who took over Student Loans Planet? If you said Obama, you would be right. When that bubble bursts, the taxpayers will be fleeced yet again. It will probably rival the sub prime mess in severity to the economy.
What he said is true, however the real reason behind low interest rates is the economy and excessive borrowing by our government. If interest rates were to rise to a normal level, our government and us would go broke. We are paying next to nothing in the rates, but still are shelling out close to $400 billion a year. Can you imagine if the spread of short term and long term bond yields went to 3 to 6 percent where they should be. How about $1.5 trillion a year in interest payments, heck we only take in $3 trillion. The existing bond holders having their bond values slashed by 50% at least, and the stock market totally tanked. Everyone knows this. It happened because 1/2 of the populous along with some corporations are on the take. Unfortunately many of us are too stupid and dishonest to stop all of the embezzlement.
Lou says:
“What he said is true, however the real reason behind low interest rates is the economy and excessive borrowing by our government. If interest rates were to rise to a normal level, our government and us would go broke. ”
Can you please explain how excessive borrowing by our government lowers the interest rates. I agree that a week economy is the primary reason for low rates but how exactly do you explain excessive borrowing lowers rates?
Actually, the Fed has kept the interest rates down artificially thinking that would help the economy. This economy has been in the tank for 6+ years and has not recovered from the sub-prime meltdown. 93 million unemployed or underemployed, 48 million on food stamps, record numbers of disability applicants, entitlements galore and a government spending half a trillion more than it takes in even though it is taking more in due to tax increases. This government has little spending discipline in both parties. A balanced budget with cuts in spending might help, but who is going to do that? They would rather keep re-arranging the deck chairs on the Titanic instead of showing courage and doing the right thing.
….and this presents another valid reason to audit the Federal Reserve and come clean as to who is really running things on the macro level.
I don’t feel the least bit sorry for any of the major P&C, life or health carriers. They allied themselves with the progressives in cntral banking, Obamacare, macro-regulation and every other disgusting socialist scheme. They deserve to get clobbered-too bad they wil take all of agents (and insureds) with them. The business world is now a disgusting place where “free markets” are a dirty term and “fairness” is new gospel.
tiger, if insurance carriers can’t make investment income, they will tighten the screws, restrict writings and raise prices again in order to make an underwriting profit. We have seen it happen over and over.
Tiger, yes of course, all socialists are funded in their campaign financing by Wall Street financiers. It happens all the time, in every culture, as a fundamental part of history, that the financiers back the revolutionary Left. You may want to spend some time over the next 30 or 40 years doing some research so you can catch up with history as it actually occurs. In exchange for President Obama, President Bush before him, and President Clinton before that, allowing Wall Street participants who were party to the plunder to escape and evade criminal and civil prosecutions (other than the obvious tokens such as Bernie Madoff), many on Wall Street decided to financially back whomever in government would back Wall Street’s exploits. One hand washes the other. It is hardly socialism, but more accurately “complicitly cooperative corruption.” Please don’t confuse practical collusion with political ideology.
Steven – Absolute power corrupts absolutely!
Fox News says buy Gold every five minutes. Simple solution!
The reason for the lower interest rates is to try and keep the game going by the Federal Reserve Bank. If a family is spending too much and not saving but actually borrowing more each year, the bank they do business with will know this and cut them off. They will have to make economies, because it will be forced upon them. If they don’t they lose whatever assets they have and they will be essentially be bankrupt and destroyed. Our nation (us) through mostly liberal policies has been doing the same thing, only this is our nation. No one wants to see this go down. But it will eventually unless we get a hold of ourselves. That would be disastrous. Any money you have will be gone, especially if it is in Federal Reserve bank.
Lou, are you up for a good Thomas Jefferson quote? He was probably the wisest of the Presidents and it speaks to this issue.
“The two enemies of the people are Criminals and Government, so let us tie the second down with the chains of the Constitution so the second will not become the legalized version of the first”.
Of course, the current version we have in power are the first as has been shown in the past 6+ years.