Posted on Sep 20, 2015
Sgt Kelli Mays
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http://economictimes.indiatimes.com/markets/stocks/news/why-feds-decision-not-to-raise-rates-may-have-deepened-investors-fears/articleshow/49009045.cms

Although the Feds have said all summer they are going to raise the rates, they decided at the last minute not too....Rates have been down since 2008....They have been artificially low for far too long...and by keeping them low is going to hurt the US as a whole in the long run.

Using China and current low employment and other things as an excuse to keep the rates super low, to me is not a good one.

Yes, it's been awesome for a whole lot of people....the housing market started to boom again which is awesome, but it's hurt many too. Interest paid on CD's and other savings vehicles are super low...so it's give and take...

Now the Feds say they will raise rates in December...this is like the third time they've put off the inevitable. Do they really think that December is going to make a difference or be any better?
Edited 9 y ago
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Responses: 7
MCPO Roger Collins
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Absolutely not! We continue living off the credit card ( National Debt) and phantom money (federal Reserve). It has been years and the current balance sheet from them shows that there will be over $4T in debt to be reentered into the economy at some point. That means that now those of us with money in CDs, bank accounts and other cash income producing products are taking it in the shorts, while banks and Wall Street is flush at our expense. The Fed should be eliminated as a unit that has the responsibility for the stabilization of the dollar. They have failed miserably, and there is no recourse through Congressional oversight.
http://www.federalreserve.gov/releases/h41/Current/
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Sgt Kelli Mays
Sgt Kelli Mays
9 y
Exactly!
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SPC Steve Bright
SPC Steve Bright
4 y
The Fed is NOT responsible for a stable dollar but rather for stable rates and employment which lead to a stable dollar.
Second, the lower rates are good for the markets. Higher rates will slow the economy — something we can not afford at this point in time.
Third. Your presumption that lower rates benefit the markets at the expense of savings accounts is wrong because it assumes the two are of equal risk, they are not.
As to looking at debt, you need to look at debt to GDP, not total debt. This is an inaccurate approach when considering debt relative to history.
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MCPO Roger Collins
MCPO Roger Collins
4 y
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SGT Jerrold Pesz
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No. It is time for the free ride to end. The near zero interest rates have really hurt many seniors by wiping out a large part of their income in a misguided effort to help "the poor".
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Sgt Kelli Mays
Sgt Kelli Mays
9 y
Agreed.
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SPC Steve Bright
SPC Steve Bright
4 y
Low rates are here to keep the economy going. When rates are low, inflation is low and low inflation helps senior citizens. Higher rates will bring on inflation and hurt seniors even more so. The real issue for seniors is medical expenses which are not correlated to rates.
As to why rates are kept low it is not to benefit the poor but to keep the economy going while things are difficult. Lower borrowing costs for businesses so they are more likely to borrow and invest in jobs.
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Cpl Software Engineer
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Sgt Kelli Mays In my opinion, it was a political decision, not an economic decision. The longer they wait, the more pain we will all feel. The Mises Institute is a great resource why fiat currencies will destroy an economy and country.
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Sgt Kelli Mays
Sgt Kelli Mays
9 y
You hit it right on the nail! It's political...not economical...which in the long run....the longer we keep rates low...the harder the re adjustment is going to be....and the lower the economy will go before it can come back and level off to where it really should be. WE are in a FALSE pre arranged adjustment that is not good...yes, it's great for the home owners who have purchased and or refinanced during this period, but OVERALL...it's not a good thing. Most people don't know or understand this....but being in the financial business I get it and see the big picture...it's just another obama legacy so to speak that's going to blow up after he's long gone out of office...
Don't you think it's funny that Yellen said when she takes office she's raising rates and all of the sudden she changes her mind....I am pretty sure she is receiving a WHOLE lot of pressure from the Liberals to keep the rates artificially LOW as they are.
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