The toll low rates are taking on savers is very real. The same cash account that was paying $500 on every $10,000 four years ago barely ekes out $100 today. That, says Morningstar analyst Michael Wong, is a negative real rate of return, considering inflation of about 2 percent. “Because investors are so risk averse lately,” he says, “many would rather earn nothing on their cash than risk losing it by putting it into equities or bonds.”
I can't blame businesses or individuals for not investing; who would, with this crazy volatility and uncertainty? The leader of the free world is a clueless milquetoast, the chairman of the Fed can't even figure his own tax return, and the banks in Urp are about to go down like carefully laid dominoes. And our banks?
Banks are not putting deposits to use because they don’t see enough compelling loan-making opportunities in an uncertain economy. The Fed reported that deposits at U.S. domestically chartered commercial banks climbed 16 percent in the past 31 months to $7.38 trillion, while loans fell 6.4 percent. That has forced many banks to shovel money into short-term securities that yield next to nothing.
Wall Street has effectively broken our system with their financial tricks and their razzledazzle. Oversight and regulation have been a joke for decades. So here we are, sitting on our mattresses stuffed with cash and waiting for The Big Boys who destroyed our markets to "fix" them. Good luck.
Now add this bit to the above.
ReplyDeleteWe're nearing 50% of tax filers not paying a dime, and what's more, many are getting credit rebates on top of zero paid in.
Once we hit 51% of filers not paying a dime, we're a one party statist country. Period.
Nothing makes any sense anymore. Voters vote their pocket books as often as not ... do you know any who will voluntarily vote themselves more tax when they pay none already?
Aridog, the facts at your link should be trumpeted from the tops of mountains until Americans UNDERSTAND the system they live in.
ReplyDeleteI think a person should be a net taxpayer to earn the right to vote. It would stop a lot of this destructive nonsense.
Lady Red says:
ReplyDelete"...a person should be a net taxpayer to earn the right to vote. It would stop a lot of this destructive nonsense."
That is the was the Constitution was originally written, only landowners, business owners, journeyman tradesmen, etc - i.e., those who both contributed and had something to lose, weilded the franchise.
I've been saying for years that it needs to go back to the closest we can get to that, which now would be, as you said 'net taxpayers' being the only ones who qualify to vote.
They'll never do it; FFS, they want convicts and illegal aliens to vote.
ReplyDeleteI agree that it would be best for out country, however.