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I never get tired of conspiracy theories that rely on the idea that poor people have more savings than rich people.
Exactly! Low interest rates are injurious to those people who happen to have zero debt, who have considerable amount of idle cash, and who aren't much invested in equities, real estate or longer-term bonds. And exactly how many people are in that cohort?
Around the world, shaky currencies are losing value. This isn't sly or perfidious manipulation by central banks. It's a flight to safety. If that weren't the case, the US dollar would be falling relative to the Euro, the Yen, the Pound and so forth. Instead, the reverse is happening - despite our near-zero interest rate.
The really sobering and frightening realization is how LITTLE control central banks actually have - rather than how much.
They believe the story they are being told that they'll get great jobs and will be able to pay back their loans lickity split. And then they try to actually find a job and reality sets in - how the heck to make the payments with no job or one of those fantastic minimum wage jobs!?
Really? IMO, they have no intention on paying back their loans.
I never get tired of conspiracy theories that rely on the idea that poor people have more savings than rich people.
It's no conspiracy. It's just a small group of bankers, who feel that they are entitled to be super wealthy, who get together periodically to decide how they can get richer. They do it all the time. I use to run in those circles. There is one and only one thing they care about and that is how they can get more money. Period
Really? IMO, they have no intention on paying back their loans.
Eventually they come to that conclusion as well as most Serfs of the world. But b financial institutions have ways of crushing resolve as demonstrated during the recent Greek confrontations. They just cut off all money until you pay.
Bank offered me 5 times income yesterday based on nonsense. Sure I have the monies to handle it if I wanted that much , but it is insane to offer a single income family 5-6 times income for a home....
For example, if your income is 50K, 5 times that is 250K. It's common for a family with a 50K income to live in a house that cost 250K. The key issues are that you have good credit, a reasonable down payment, and reasonable job stability.
It's no conspiracy. It's just a small group of bankers, who feel that they are entitled to be super wealthy, who get together periodically to decide how they can get richer. They do it all the time. I use to run in those circles. There is one and only one thing they care about and that is how they can get more money. Period
This is completely irrelevant to my point that rich people have more money than poor people. Rich people as a group want to increase rates, as the Wall St. Journal opinion pages will tell you. I suppose that could all be a Brer Rabbit long con on their part, but that doesn't explain away the fact that, still, rich people have more savings than poor people.
For example, if your income is 50K, 5 times that is 250K. It's common for a family with a 50K income to live in a house that cost 250K. The key issues are that you have good credit, a reasonable down payment, and reasonable job stability.
The median home price is $180,000. The median household income is around $52k. The poorest households are probably not owners, so it seems like paying 5x annual income for a house is unusual in America. Census data from last decade indicated that households in the $40-60k range had houses worth around $112k, which approximates a house price of 2.25x household income for a typical American.
In conclusion, buying a house worth 5-6x household income sounds like an outlier.
1. "Savers" are somehow getting "robbed" by the Federal Reserve keeping interest rates low. These are the same savers who are drowning in debt and who are unable to pay their bills. So, yeah, if interest rates suddenly rose to 5%/year, then just as suddenly these savers would find their debts paid off and their bills manageable. And there I was, fondly supposing that low interest rates are actually good for debtors.
2. The post-2009 stock market climb is somehow illegitimate. Because, you know, if stocks are rising but paychecks are not, somehow that's immoral, and all that.
3. The US Dollar is doomed. Because, you know, it's only up around 30% against a basket of world currencies (minus the Swiss Franc) over the past 8 years.
1) Not sure what your definition of "savers" is, but most people I know who are savers are excellent with money and aren't drowning it debt. Most have very little to no debt and didn't take on big mortgages or lots of leverage.
2) I think what most people are referring to with the stock market increase isn't that its not "illegitimate", but that it has increased mostly due to very low interest rates and when that wears off or ends the increase in the market comes to an end. Basically it has been manipulated up further then it should have.
3) The US dollar is the world currency and for now isn't doomed. It could be in deep trouble if the days of it being the world currency are done. Part of the reason the dollar has been up lately is that many central banks have been devaluing their currency. There has been a race to devalue money around the world, often called currency wars.
This is completely irrelevant to my point that rich people have more money than poor people. Rich people as a group want to increase rates, as the Wall St. Journal opinion pages will tell you. I suppose that could all be a Brer Rabbit long con on their part, but that doesn't explain away the fact that, still, rich people have more savings than poor people.
There are the rich people and then there are the Uber-rich, who borrow money for free and then use it to buy back their own stock while sticking their corporations with huge and unsustainable debts. We're talking about this and theives who will do anything for a billion dollars. These guys totally dominate world wealth as the concentration of wealth reaches historic proportions.
Think a Monopoly game where one player has unlimited access to the Bank. This professor explains the REAL mechanics of how it is done. Very easy and anyone can become a billionaire overnight if they have access to free money.
1) Not sure what your definition of "savers" is, but most people I know who are savers are excellent with money and aren't drowning it debt. Most have very little to no debt and didn't take on big mortgages or lots of leverage.
2) I think what most people are referring to with the stock market increase isn't that its not "illegitimate", but that it has increased mostly due to very low interest rates and when that wears off or ends the increase in the market comes to an end. Basically it has been manipulated up further then it should have.
3) The US dollar is the world currency and for now isn't doomed. It could be in deep trouble if the days of it being the world currency are done. Part of the reason the dollar has been up lately is that many central banks have been devaluing their currency. There has been a race to devalue money around the world, often called currency wars.
Ah yes. An apologist for redistribution of wealth to the top 1%. And why not? They work so hard for the money. They go to the Fed's teller window, borrow a few billion dollars of free money, and then buy back their stock. Meanwhile they keep laying off people until there is no company left. But, as sad as this may seem, they do have billions of dollars of savers' money in their Swiss bank account which helps to allay their deep sadness.
What a wonderful capitalistic world we live in. The Banker gives free money to 1% of the population and the rest have to figure out how to survive. The game is called MONOPOLY.
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