Trigger Mike Posted August 6, 2011 Share Posted August 6, 2011 so the Fed reserve kept rates low to cause inflation and to ward off deflation, causing a weak dollar and high oil and gold prices. Now that the S & P downgraded our debt, this should result in rates finally going higher despite his best efforts. This should result in us FINALLY earning decent interest on our savings accounts. Now if rates do indeed rise as the result of our debt costing less to buy, I am wondering if this will help ward off inflation the Fed has been trying to create and result in lower gas prices? Possibly lower ammo and gun prices as well? Link to comment Share on other sites More sharing options...
Clay Mosby Posted August 6, 2011 Share Posted August 6, 2011 nevermind Link to comment Share on other sites More sharing options...
J-BAR #18287 Posted August 6, 2011 Share Posted August 6, 2011 Banks pay higher interest on savings accounts when they need to bring in more money. They try to bring in more money when the whole financial picture is riskier and more uncertain. I don't think raising interest paid on savings accounts is a very reassuring sign of general economic health. I don't think there is any up side to the US's present economic situation, unless you are someone who wants to see the United States give up its position as leader of the free world. ...and no, I don't think prices on anything will ever come down. Link to comment Share on other sites More sharing options...
Trigger Mike Posted August 6, 2011 Author Share Posted August 6, 2011 Banks pay higher interest on savings accounts when they need to bring in more money. They try to bring in more money when the whole financial picture is riskier and more uncertain. I don't think raising interest paid on savings accounts is a very reassuring sign of general economic health. I don't think there is any up side to the US's present economic situation, unless you are someone who wants to see the United States give up its position as leader of the free world. ...and no, I don't think prices on anything will ever come down. likely the dollar will fall causing prices to sky rocket. the only thing keeping it from totally falling is the euro is in worse shape than we are. Link to comment Share on other sites More sharing options...
Wolfgang, SASS #53480 Posted August 6, 2011 Share Posted August 6, 2011 Banks pay higher interest on savings accounts when they need to bring in more money. They try to bring in more money when the whole financial picture is riskier and more uncertain. I don't think raising interest paid on savings accounts is a very reassuring sign of general economic health. I don't think there is any up side to the US's present economic situation, unless you are someone who wants to see the United States give up its position as leader of the free world. ...and no, I don't think prices on anything will ever come down. A very astute assesment of the mess . . . I agree .... Link to comment Share on other sites More sharing options...
Loophole LaRue, SASS #51438 Posted August 6, 2011 Share Posted August 6, 2011 Well over my head....all I can say is that I went to my bank this morning and refinanced my house, locking in a 4% mortgage - the lowest rate I have ever seen. Somehow, I don't think that rate will be there much longer. LL Link to comment Share on other sites More sharing options...
Rye Miles #13621 Posted August 6, 2011 Share Posted August 6, 2011 When interest rates were 18% on mortgages in the 70's, the interest rates on cd's were 12-14%!!! If the loan interest rates go high enough so will the savings rates. Dunno much more than that! Link to comment Share on other sites More sharing options...
Bodine Posted August 6, 2011 Share Posted August 6, 2011 With the run on selling stocks, more people are putting their money in banks. With the stockmarket ready to crash, banks cannot invest and make any money, and therefore they lose money in paying interest on savings. Some banks are already considering collecting interest on savings accounts (holding others' money for this very reason. Nope, we're screwed. Watch the scramble Monday morning, I predict and early market closing to prevent a complete crash. I lost almost evewrything last time around. Nothing to lose this time. Bodine Link to comment Share on other sites More sharing options...
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