4 ms·
It's a complicated question, but in my world I'll take higher interest rates! In my world, the only people, I know, who have benefitted from these rediculiousl
by marincounty 11y ago
It's a complicated question, but in my world I'll take higher interest rates!
In my world, the only people, I know, who have benefitted from these rediculiously low interest rates, are rich people(entities that were doing great before the ression, and will probally still do well in a depression?). I've heard if you have a great job, and great credit, and you live on the right zip code; you can get some of this free money? (yes--I believe they still redline.)
In my world, my cd is making nothing. I pay to just cash a check.
Supposedly the economy is doing great because of these low interest rates? In my world, a lot of people just stopped looking for work, or work that payed a livable wage. (I know Obama administration didn't have any solution, but to lower interest rates. Yes--I know the federal reserve is a separate entity.)
I, and a lot of people like me, didn't benefit from these low interest rates. Yes--there are those that did. I see it in tech, and I'm glad!
Granted my world is small. I'm a nobody, and close to being homeless. I guess the part of the low interest rate dilemma(the one "I'm experiencing" is partially due to Dodd-Frank? It's too strict? I guess? I really don't know. I know when they make it easier for guys like me to get low interest rates, Rebublicans try to make it more difficult to file for Bankruptcy.
As to more gas taxes--no. Poor, middle class have to commute. Now if we could tie all fees/fines to income; I'd be doing backflips. A rich man gets a ticket. He tells the wife over dinner. A poor man gets a $600 red light fine; that just might be the final straw?
As I said earlier, it's complicated, but these low interest rates did not benefit me. They benefitted my wealthy neighbors. I don't want to argue with anyone--I'm a nobody. So, my opinion really doesn't matter. I just question exactly who benefitted from this free money?
- Hermel 11y agoYou are implicity assuming that the fed actually has the power to control interest rates in a meaningful way. However, in the end, the fed cannot depart too much from the "natural rate of interest" and there are hints that this natural rate currently is lower than ever before.
- jack9 11y agoThey do affect it in a meaningful way. They don't depart because it would tank sectors.
- dxhdr 11y agoWait, this is exactly backwards. The Fed explicitly controls interest rates because they control the supply of money. It's that simple. They do this by setting the federal funds rate, open market operations (direct bond purchases), and so on.
- Hermel 11y agoThey control nominal interest rates, but not real interest rates. In a world without real growth, you won't get significant real interest rates regardless of money supply.
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