A fed policy that only has one method of dealing with economic problems and that is to intervene and print more money expropriating the purchasing power of your average American and putting it into the pockets of wealthy government contractors lobby for even more intervention.. it's incestuous combined with a population that wants to be taxed and intervened even more by the government and hopes of resolving the problem that the government intervention causing the first place.. the complete lack of understanding in the general populace of fundamental economics.. and the hollywoodism of politics.... It's more of a reality TV show I've always popular then anything grounded. And reasonable government
Is this a problem? Just borrow cheap money and dump it in real estate. Never look a gift horse in the mouth.
inflationary monetary policy benefits the borrower at the expense of the saver... so yes.. the behavior that is encouraged by that is to borrow and take bets chasing yield.. this has a tendency to bury leverage in the system and cause bubbles... but of course just blame it on the capitalist not the fed or the government interventionists.. We arent the ones that have shifted the system of incentives from sound investment strategies to borrow and bet big to keep afloat
I say listen to Carl Menger " The public’s understanding of what money is and its origins has devolved to the point where the government monetary authorities can now inflate with impunity, with the ulti- mate result to be the destruction of the division of labor undoing all of mankind’s progress to date. The average Joe and Jane must trust the wise men and women working secretly in cen- tral banks around the world with what passes for money—paper and digits on a computer screen. These banks are the largest employ- ers of academically-trained economists. But under the guidance of the Keynesian-schooled, the central banks engage in monetary opera- tions that fulfill the funding needs demanded by politicians for political ends The hopes, dreams, and living standards of millions are affected daily by these faceless bureaucrats that supposedly know exactly which monetary buttons to push and levers to pull to insure our prosperity. However, history shows that central bankers have but one strategy to cure all things, especially their past mistakes: print more money, with their plans for stabiliza- tion resulting in just the opposite."
So you want to say that it will be even harder for newbies to make any serious cash or just market research that we still rely on cash in lot of markets and not on credit cards ? Or something about deposits with negative rates. Well I have read the article but not all, it's way too long, just noticed some points and want to talk more about that.
"But there exists a splash of humble wit folks floating beneath the starry sky delighted by the victory of each one and beaten down none." A conspiracy theorist who thinks he's a poet...how precious.
%% Can work well; but even in Europe the negative rates are a tuff sell.On to positive news.............. USa has so much money/banks; NOT likely we will have to pay a bank to store our money. Besides; I still have my regional bank promo='' tulip time stainless steel flatware LOL''
Glad some banks still keep euros and CHF for free, it costs quite a bit with IB - on the other hand IB does pay a non insignificant interest on usd cash, and allows one to buy Tbills, much better than the banks around here, that try to sell all kind of crappy structured products explaining it's the best way for this cash to yield more than 0.3% ?!? I suspect the banks holding big accounts at favorable conditions already have to charge their customers for holding currencies with negative yields. I mean big accounts, at basic private banking level most I see is crap perfumed with much red tape.