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2022-12-15 Economy

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Posted by Lord Garth 2022-12-15 00:00|| || Front Page|| [11129 views ] Top

#1 Need to raise it near 10% and tell the banks to start offering something more than .02% on savings.

Posted by Procopius2k 2022-12-15 08:39|| 2022-12-15 08:39|| Front Page Top

#2 I second Procopius2k remark above!

Posted by Seeking Cure For Ignorance 2022-12-15 09:58|| 2022-12-15 09:58|| Front Page Top

#3 as others have noted, the increase in rate this year has been steep but it started from near zero --- the average rate over the past 50 years has been about 5%

Yes, and until just recently, economists were saying it would be ZIRP or even negative rates for as far into the future as anyone could imagine.

But, oh, yeah, that was economists saying that...

Posted by M. Murcek 2022-12-15 10:09|| 2022-12-15 10:09|| Front Page Top

#4 I don't think the economists expected a US President to reduce the flow of oil in the US making the country dependent on foreign oil again.

Posted by Vespasian Ebboting9735 2022-12-15 10:50|| 2022-12-15 10:50|| Front Page Top

#5 Normally tightening by the Fed, which has been going for a year or so, would lead to a recession. However, the Fed did throw $3 trillion into the economy back in 2022 and has only taken about $400 billion out. Yes, this is tightening--but against a backdrop of extraordinary and profligate looseness in 2020. This money is still in the economy, and the Fed has a long way to go to sop it up. https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

By the way, this is the reason why banks are paying you so little in interest. There is so much money floating around that they really don't need your deposits. So why pay for them?

Posted by Tom 2022-12-15 13:27|| 2022-12-15 13:27|| Front Page Top

#6 Tom

True the interest rate on regular svg accounts is near zero.

However, some banks have created 'preferred savings' accounts paying 3%+/yr.

Also 6 month Certificate of Dep are going for nearly 5%/yr.

Interestingly, the long T instruments (30yr) paying only about 3.5%

Posted by Lord Garth 2022-12-15 13:44|| 2022-12-15 13:44|| Front Page Top

#7 they really don't need your deposits

Hell, sone EU banks are charging customers to keep their money and lots of US banks want to start. I suspect they will need some kind of go-ahead from the FDIC to do it, and I imagine our GOPe betters, having just gotten trashed on their effort to do lame duck amnesty, might see it as a viable punishment in the next Congress.

Posted by M. Murcek 2022-12-15 13:46|| 2022-12-15 13:46|| Front Page Top

#8 What happened to the days when you got a toaster if you opened an account?

Posted by DooDahMan 2022-12-15 13:49|| 2022-12-15 13:49|| Front Page Top

#9 There is so much money floating around

Well, when you can call up the Fed and basically get near 0 interest money anytime, yeah. Call up the Fed and be told it will be 10%, they'll start looking elsewhere.

If everyone has so much savings, why is credit card debt now reaching record levels?

Posted by Procopius2k 2022-12-15 16:52|| 2022-12-15 16:52|| Front Page Top

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