Posted on 05/01/2024 7:14:08 AM PDT by Kaiser8408a
What should the real interest-rate be? That’s a good question. I would say it’s probably at a perfect spot. Expecting it to go back down like it was during quantitative easing is just ridiculous. The average interest rate overtime has been in the 7% range. We have a short memory of history.
See how you feel during Biden‘s second term were gasoline will be over eight dollars per gallon. The Democratic house and Senate will vote to outlaw combustible engine vehicles.
As a Republican, we have lost our way and will never win elections again if we don’t stop this internal fighting and bickering.
It’s irresponsible that the rates aren’t being raised even more.
bttt
I’m job locked dur to the terrible interest rates. I’m at 3.21% now, I’d be an idiot to replace that with an 8% loan.
It’s irresponsible to believe in the fairy tales of the fed & destroy the middle class.
And who is the biggest owner of MBS? One of the biggest is the Fed. Pretty sad when they set the rates AND get caught in the downdraft.
If you ever wondered if the world is run by idiots…there is your answer.
It's absolutely partly the Federal Reserve's fault for printing so much money.
I think the Fed is not competent. Their solutions do more damage than good. Inflation does destroy the savings of people on fixed income but the Fed’s actions destroy the whole economy.
My point of view is shared by many.
https://prospect.org/economy/2023-04-06-federal-reserve-independence-problem/
People forget that historically speaking, a prime rate of 8.5% is rather normal.
Rates were north of 10% for much of the ‘80s, for example.
Volcker was right. Only way to work out of inflation caused by excessive spending is BELT TIGHTENING by all parties, including government, lower, middle and upper class Americans. Inflation will not cure itself. Real inflation is lot higher than those massaged figures of CPI.
Fed was created to defend and protect the US Dollar. Last several decades, Fed has taken on the roll of stabilizing the economy. In that effort, Fed creates more violent business cycles. Mainly because Fed is usually behind the curve.
The Pubbies in DC aren’t doing anything about it,either
Thank you for your thoughts.
I am far more cynical than you appear. I do not believe the Fed defends and protects the $ and I do not believe that the Feds actions control inflation. I think the Fed is a club incompetently run with an eye toward the benefits of the club. Too many with little knowledge posture about their expertise when they have none.
Critics have questioned its effectiveness in managing inflation, regulating the banking system, and stabilizing the economy. Notable critics include Nobel laureate economist Milton Friedman and his fellow monetarist Anna Schwartz, who argued that the Fed’s policies exacerbated the Great Depression.
The Case Against the Fed - FEE.org
Heritage.org
Politicians created a fully government-run institution to bail out government and bad banks alike: the Federal Reserve. Since its founding, the Fed has stolen 98% of the value of a dollar. It has used those profits to repetitively launch boom-bust cycles
Who is getting paid the interest and do they have the right to charge such interest?
That’s a very good point. I’d make the case that the U.S. economy doesn’t have the capacity for the kind of growth that would support those interest rates anymore. Demographics and declining productivity make high interest rates a disastrous scenario for us right now.
Of course. Where there is a hard choice to be made, Politics trumps economics any time.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.