4 ms·

having more money available every month doesn't create more spending opportunities ? huh ?

• josho 4y ago
  How are people getting more money in their pockets every month? Most Americans are not sitting on cash earning interest.
  • bubbleRefuge 4y ago
    yeah. this policy is regressive . no doubt. but people who do have cash are getting more "free money" every month and allot of it. they seem to be spending it into the economy right now. luxury items are created by everyday people.
• kevstev 4y ago
  I think a huge point you are missing here is the whole supply and demand aspect. The whole point of raising interest rates is to reduce the demand of borrowed money. What made sense to borrow for at 1% interest may not make sense at 4.75%. I myself was taking out margin loans in the 2010s at 1% and investing in dividend yielding stocks in the 4-5% range for a long time. I was never excessively leveraged, but it absolutely made sense to do so at that time. Nowadays, that's a really dumb bet. In fact, I have a lot of stuff in cash right now as I kind of wait and see where I feel the market is going, and as of this week its getting over 4% interest at IB, which is great. Also, I think you are misunderstanding magnitudes here. Do you have stats on what percentage of federal debt is actually being held by US citizens? Joe Schmo is not sitting on piles of bonds.
  • bubbleRefuge 4y ago
    For every borrower there is a "saver" on the other side. Any yes they are more wealthy generally. Raising interest rates is welfare for the rich. Nonetheless its allot of deficit spending into the economy which is stimulative especially considering the very high amounts of government debt instruments out there relative to GDP. You can find stats on line. Whatever stats you find will show a 4X increase. Thats allot of risk free money.