Economic "recovery" only for the rich

[PapaG]

Woohoo. Recovery only for the rich? I must be rich. We put in an offer on a house at the coast, scheduled to have a very expensive deck installed into our home back yard, and have 2-3 other projects going on.

First time ever I've felt the media said I am rich! Booya!! I'm rich biiiaaattcchhh!

Oh wait. I'm not.

You're considered "rich", you 1%er, you!

 

[BLAZINGGIANTS]

You're considered "rich", you 1%er, you!

Like I said, "Oh wait. I'm not."

I'm confortable.

Hate the over-generalizations.

But should I feel good or bad I can do some things I've long wanted to do?

(Bad cuz maybe I'm wasting money, good cuz I'm "rich"??)

 

[Denny Crane]

The good old days! The top Federal tax rate was 70% and the interest rates hit 22%. But it was more than just interest rate control, Banks kept very precise record of money available and reported it to the Federal Reserve daily. When x amount of money was available in the combined member banks, the Fed would not loan the banks any more money at any rate. That dam was not needed long though, not many wanted to borrow money to cause the banks to barrow from the Fed at rates >20%. It didn't take long to put inflation in a box with those tactics. It must have stayed in the box for nearly a generation.

I think Max is right, we are not far away in time from needing to return to those tactics. The problem is, the Banking system is entirely different today, I don't know if the same machinery is in place to implement such control.

Maybe Max has some insight about that question. For instance, Banks were not interstate back then, nor were they combined investment and commercial banks. Heck back then, B of A (one of my Beta test sites) was the largest bank in the World in assets but only did business in California. Today it is a World wide Bank HQed in North Carolina.

I don't think that's what maxiep meant.

The fed is printing money and buying debt. Less debt instruments means more demand thus higher price. Higher price means lower yields.

They can't print money forever, you'd think. When they stop, interest rates will rise.

People can only afford a certain amount of monthly mtg payment. Higher interest rates mean less house for the payment.

But he can speak for himself.