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Saving Interest Rates

What are politicians saying about increasing saving interest rates?
Why don't federal regulators not increase the interest rate on savings?

What do those regulators do? Why is it fair you get nearly zero return on your
investment in the federal reserve banking system?

What are politicians saying? How long will the ridiculous situation last?
Is the press covering this?

You should have invested in an S&P 500 Index Fund three years ago 02.Nov.2014 19:14

anon

If your political sensibilities prevent you from investing earned, taxed, money (as opposed to having it given to you) then stay poor, complain and depend on someone else - we need someone to work at Walmart and pump gas.

"Is the press covering this?"
Are you kidding? Try reading ANY media source on business/financial affairs and you'll find a factual explanation of interest rates and such. For starters I suggest:  http://en.wikipedia.org/wiki/Interest_rate

The Truth About Interest Rates 03.Nov.2014 00:04

blues

This is what is really behind it:

/ŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻ
Information Clearing House — U.S. Will Self-Destruct in Near Future: Dmitry Orlov — March 20, 2014
 http://www.informationclearinghouse.info/article38010.htm

"The United States right now, from my point of view and the point of view from observers from around the world, is on suicide watch. It's a country that is going to self-destruct at some point in the near future."

"The trajectory is defined by this sort of incompetent militarism where more and more money results in bigger and bigger military fiascos around the world and less and less of actual foreign policy that can be pursued or articulated. There are massive levels of corruption. The amount of money that is being stolen by the U.S. Government and its various appropriations processes is now in the trillions of dollars a year. Runaway debt, the United States now has a level of debt that is un-repayable. All we're waiting for is interest rates to go across the magic threshold of 3% and the entire budget of the country explodes. There are also all types of other tendencies that point in the direction of collapse and systemic failure at all levels."

Dmitry Orlov is a Russian blogger who writes about the parallel between the U.S and the USSR. Orlov lived through the financial collapse of the Soviet Union in the early 1990's, and he thinks the U.S. is on the same trajectory.
\____________________

The ordinary individual would be totally demented to "invest" in any Wall Street "products" in these times. The "investment could simply vanish in one afternoon. But then some (foreign for now) banks are charging negative interest for "protecting their customer's money. Which could be bailed in and vanish suddenly anyway.

Maybe pick up some cans of corned beef hash and baked beans. The hash is just about the only thing my dog would eat when dog food was unavailable. It's salty and greasy, but any port in a storm, as they say.

good grief 04.Nov.2014 14:13

reality check

Dude (that's the name used),

Interest rates on savings are flat because banks can borrow from the Fed at about zero cost. So why would the banks need your money? The interbank Fed rates are low to try to stimulate the economy. In case you haven't been paying attention, since the end of 2008 (end of Bush II)we've been having high unemployment and a lousy economy.

Did you have savings during the high inflation years? You may have thought that you were doing well but inflation was faster than what you were being paid for regular savings accounts. It's unusual for simple savings accounts to keep up with inflation.

And lastly, why do you think you are entitled to income just from parking money in a bank account? Talk about an entitlement mentality!

Unfortunate 04.Nov.2014 17:09

dude

Responses seem to show that money has no value.
The fed is undermining the value of money.
The American is a perpetual loser being milked by the market.
Heck of a Joke
Heck of a Joke

money has no value? 06.Nov.2014 10:41

ugh

So if your money has no value, how come you can go to the corner store and buy a six pack?

Things aren't great, but we're not yet in deflation like some parts of the world might be just tipping over to.

WTF does this have to do with 911? Get real.

"money has no value" 06.Nov.2014 11:46

...

No, that isn't even remotely true. Money has a value in that it is a currency which is honored and backed by the US government. You can use that currency to go buy things. Try it! It really works.

You can even invest that money in different ways, such as the above-mentioned index funds, with varying degrees of risk. Your return on the investment is tied to the amount of risk you expose yourself to when making the investment. Since putting money in a savings account is essentially without risk, you can not expect to make money that way in any significant way. If you are very paranoid about risk, buy bonds. Your return will not be much, but it is better than what you'll get in a bank account.

Risk 07.Nov.2014 07:06

dude

Placing my money in the bank so, a banker can make money with it
I should have no return? That shows the value of my money at the bank.

Now of course your bank offers a casino too. Placing your money in a mutual fund of sorts is gambling.
You have no control of use and very delayed information. That money is not till share are sold.
Not many manage to buy low and sell high. The market is high today but your afraid to sell.
The bond then is somewhat of use and of lesser risk.

Consider your location is a good thing to do.
Up and down it goes
Up and down it goes

no 07.Nov.2014 09:19

...

"Placing my money in the bank so, a banker can make money with it
I should have no return? That shows the value of my money at the bank."

No, you place your money in the bank so it is available to you without stuffing it in a mattress. It is also FDIC insured while placed there.
You have little return because you are not taking any risk. It has nothing to do with what the banker does with it. The value of your money at the bank is basically the same as the value of that same money if you held it at your hand. The purchasing power is the same, aside from the small amount of interest you make. Again, why would you expect to make interest on an almost entirely risk-free investment?


"Now of course your bank offers a casino too. Placing your money in a mutual fund of sorts is gambling.
You have no control of use and very delayed information. That money is not till share are sold.
Not many manage to buy low and sell high. The market is high today but your afraid to sell.
The bond then is somewhat of use and of lesser risk. "

yes, investment implies risk. And the payoff is delayed. Which is why those kinds of investments are long-term and used for retirement. Most people DO manage to buy low and sell high over the long term with index funds, because that is simply how they perform for the most part. If you leave your money alone, you will end up with more of it down the road, assuming you don't gamble too heavily on high-risk funds.

amazed 07.Nov.2014 09:57

amazed

Dude seems to want return without risk. He wants a higher rate of return for parking capital in a bank, while still having the security of FDIC insurance. Sounds just like the mega bankers who wanted to have the high rate of return of derivatives, but when the shit hit the fan cried foul and asked the Feds to bail them out.

I wonder over time, how many "anti-capitalism" posts he's made here in Indymedia.

My bad 07.Nov.2014 21:23

Dude

Your grand Father got interest, your dad got interest and folks are to stupid to realize that the banks should still pay interest. That capitalism then and corrupt capitalism now.

Dude 08.Nov.2014 11:06

bored

My parents purchased a home with about three percent interest on a 30 year loan. They got interest on their savings, sure. But perhaps one to one and a half percent.

I took out a home loan in the early 90's and was thrilled to only pay 9.5%. Then a CD would pay 5 or more depending on term.

Learn some basic economic theory Dude.