For recovery, raise rates

Waterbury Republican-American ^ | August 15, 2010 | Editorial

[NeoCaveman]

The feds have put themselves in quite a bind. How will they ever pay the interest on the accumulated debt if the interest rates get real?

They can't.

Then again I don't know if they think more than 2 years ahead anyways.

[Toddsterpatriot]

So banks have so renew the loans to the fed every two weeks

So banks have so renew the loans to FROM the fed every two weeks

when they loan it to the federal government per t-bill bonds for two years?

Whether they buy a 1 month yielding 0.137%, a 3 month yielding 0.155%, a 6 month yielding 0.185%, a 1 year yielding 0.238%, a 2 year yielding 0.533% or they keep the money as excess reserves, they'd have to renew a loan from the Fed.

[April Lexington]

Ok. Let me get this straight. I'm a business guy and I borrow money. The cost of that money is going up as interest rates rise. I'm supposed to borrow more and pay more interest? NOT! My costs go up as interest costs increase. So... I lay somebody off to cover the higher cost of money... Obama/Geithner/Summers/Krugman...idiots all...

[April Lexington]

This is just another stupid wealth transfer scheme. Take more from the productive class in the form of higher interest costs and give that money to bond holders (grannies) who live better. Just like taxing and redistributing to po folk... What is mine becomes yours, thanks to government efforts. Only the free market should be allowed to set interest rates. And... we don't have one of those because the supply of money (Federal Reserve printing) is now infinite...

[Robert A Cook PE]

8<)

[WOSG]

The cogent plan is this:
- End regulations that make no sense
- End subsidies that make no sense
- Repeal Obamacare, which makes no sense
- Avoid tax hikes; Extend all the tax cuts
- Drill here, drill now
- replace corp income tax with business transfer tax and import tax
- allow for full expensing of R&D and investment
- eliminate any interest mortgage deduction
- tort reform
- jaw bone businesses to buy American and find out ways to keep production in the USA

the economy will rebound and with it, demand for credit.

[ding_dong_daddy_from_dumas]

Does it seem to you that Republicans and Dems are both hoping that the other party will be in power when interest rates go up?

[Toddsterpatriot]

Rising interest rates usually mean a strengthening economy.

[ding_dong_daddy_from_dumas]

Rising interest rates usually mean a strengthening economy.

I was thinking of the Jimmy Carter economy 1978-1980.

[Toddsterpatriot]

[DB]

The thing is, there are millions of variable rate mortgages out there with people barely making the payments.

If rates start to rise, there will be another wave of foreclosures and bank failures as a result.

The morons in government have built a catch 22 situation were all paths out have very bad consequences.

[RegulatorCountry]

A reduction of principal reflective of real market value combined with a government backed, assumable bargain rate refi for every legitimately acquired mortgage that is underwater, in exchange for a majority of any future appreciation upon resale, would have been far, far cheaper than the tens of trillions we’re into thus far. It would have stabilized the initial trigger for the financial crisis as well.

[grania]

Take more from the productive class in the form of higher interest costs and give that money to bond holders (grannies) who live better.

The "grannies" you speak of are people who saved for their whole lives, who lived in a fiscally responsible way for their whole lives, and put savings away while it earned usually 4% or more interest. Have you noticed? While that was happening the US had the best economy in the world.

So what is "granny" doing now? Cutting back on funding grandkids educations and vacations etc., giving less to cultural things, spending less money locally. Why? To subsidize an invasion of foreigners, the take-over of our bodies (you'd be amazed how many seniors who don't like the new intrusive health-care "reforms"), take-over-kids lives education programs and helping people who got mortgages they couldn't afford.

And what about the younger two or three generations? How are they going to save if they can't find steady work, can't pay off their debts, and savings don't get a boost from interest? Who're the feds going to rob next? There's no one left.

STARVE THE RICH, FEED THE POOR, TIL THERE AIN'T NO RICH NO MORE"

Ten Years After

(You really should study your 1960s and '70s rock and roll)

[grania]

eliminate any interest mortgage deduction

I don't know about that one. A lot of people paying their mortgages and just getting by need that income tax refund to pay their property taxes.

[stephenjohnbanker]

If they want another 500,000 foreclosures, raise the rates.

[stephenjohnbanker]

” The thing is, there are millions of variable rate mortgages out there with people barely making the payments.

If rates start to rise, there will be another wave of foreclosures and bank failures as a result.

The morons in government have built a catch 22 situation were all paths out have very bad consequences. “

WINNER!!

[PSYCHO-FREEP]

Sorry, they like the Ben Burn-yank-me method of economic recovery most; By throwing money out of helicopters over our cities first. If he has to, he will....

Oh, wait!

[litehaus]

Ah yes, we all recall the Peanut Farmer and those wonderful lines at gas stations and mtg rates OF 12%+, INFLATION IN THE TEENS ETC ETC ...Long Live Jimmah Cawta !

[Rummenigge]

Isn’t it about the only and most urgent thing to do ?

[rockinqsranch]

Thanks for the ping Graybeard. “Remember in November” as seems now is the battle cry, and yes Michaelson makes sense, but then too....he’s not trying to destroy the country.