Are you seriously trying to argue that because you're not able to earn money on CDs, it's the government's fault and not your own?
Yes, if you're invested in CDs, you will lose wealth as the interest rate on CDs is less than the inflation rate. Even with the low rate of return on t-bills, bonds, and notes, you're probably better off with them than CDs. I've got a higher rate of return on my savings account than on the CDs offered by my bank for anything less than 60-month terms.
Nope, I have little in CDs. Remember, I pointed out that privatization of SS would be good as a meager $8,000 invested in an IRA will now buy an annuity that equals SS performance. That being said, people used to use CDs to build nest eggs for college or whatever, now that's a loser.
Now for a bit of parody:
Our government is currently *gaining* real value through it's borrowing. What the government is currently doing is taking out a mortgage at an incredibly low interest rate and investing that money at a slightly higher interest rate. The government is *gaining* real value on that arbitrage. This is exactly how our government has grown our SS trust fund while we thought it to be stolen from us. And that is why the national debt is shrinking at such a rapid rate.
Basically, when everything you know about the market says one thing should be happening, and, in fact, something completely opposite is actually happening, the problem is not with the market, but with our understanding of the market. Re-elect Obama and he will spend this nation into a new level of prosperity.
You appear to be saying that in jest. But think about that real hard.
Here's a hint: What do you want your customers to do? What do your customers want their customers to do? What do your customers' customers' want their customers to do?
Answers: Spend, so you can earn more; spend, so they can earn more; spend so they can earn more.
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We work together every damn day. --Jon Stewart
You appear to be saying that in jest. But think about that real hard.
Here's a hint: What do you want your customers to do? What do your customers want their customers to do? What do your customers' customers' want their customers to do?
Answers: Spend, so you can earn more; spend, so they can earn more; spend so they can earn more.
when those "customers" dont have a job, how can they "spend"
You appear to be saying that in jest. But think about that real hard.
Here's a hint: What do you want your customers to do? What do your customers want their customers to do? What do your customers' customers' want their customers to do?
Answers: Spend, so you can earn more; spend, so they can earn more; spend so they can earn more.
So what you are saying is spend OTHERS into prosperity... Right, I understand how that works. That's a no brainer. I still jest about spending myself into prosperity. Not going to happen.
Oh, and it wouldn't matter how many *****s I bought from our customers, I wouldn't see a dime of a pay increase because of it. So I don't exactly see your point. I hope you aren't saying that we as individuals can spend ourselves into prosperity. Now, if everyone ELSE went out and bought a bunch of my customers' products... That would be different! (I still likely wouldn't see a pay increase....By the way)
Now, there are businesses that encourage people to spend more.... These businesses (only if they are large and successful I guess...) become the "evil" monsters taking advantage of people.... So, what's the deal with that? Oh, right..... If THEY TOO were spending themselves "into prosperity" then it would be okay....
By the way, it has been my theory for a long time that our countries financial success (prior to the collapse anyway...) Was basically only being sustained by personal debt (and some gov't debt). We shouldn't be surprised that a country full of voters (not all but MANY) who think it makes sense to live a certain standard by car payments, credit cards, etc... would result in a government doing the same. So, I do understand the whole spending thing... I just think it is not sustainable. Our success was artificial. Bound for disaster. I think that is part of the problem.
Me? Never a CC and never a car payment.
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"A society that puts equality ... ahead of freedom will end up with neither equality nor freedom."
Of course our financial success is based on debt. What do you think "interest" is? Your savings account at your bank is that bank's debt to you. So's your checking account. "Debt" is just another word for "promise".
What do we have now? Absurdly low interest rates. Why? Because everyone wants to save their money rather than spend it.
You spend everyone else into prosperity, we spend you into prosperity. Contrary to popular belief, you *did not* build whatever you have by yourself. You are who you are because of who we all are.
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We work together every damn day. --Jon Stewart
Of course our financial success is based on debt. What do you think "interest" is? Your savings account at your bank is that bank's debt to you. So's your checking account. "Debt" is just another word for "promise".
What do we have now? Absurdly low interest rates. Why? Because everyone wants to save their money rather than spend it.
You spend everyone else into prosperity, we spend you into prosperity. Contrary to popular belief, you *did not* build whatever you have by yourself. You are who you are because of who we all are.
We should all be successful now, just look at the national debt as it grows. I guess interest debts will go negative if Obama gets re-elected.
Now, if everyone ELSE went out and bought a bunch of my customers' products... That would be different! (I still likely wouldn't see a pay increase....By the way)
You just described the real problem with our economic system. You do the work, people start buying the hell out of the products you're making... and you don't see a pay increase. Why not? Your bosses are making a hell of a lot more profit off your work, but you see none if it.
Quote:
Now, there are businesses that encourage people to spend more.... These businesses (only if they are large and successful I guess...) become the "evil" monsters taking advantage of people.... So, what's the deal with that? Oh, right..... If THEY TOO were spending themselves "into prosperity" then it would be okay....
Exactly. When their net affect on the economy is to slow the velocity of money, they're part of the problem. When they scrape off too much profit and refuse to spend it to the benefit of the people who actually performed the work that created that profit, their net affect is to slow the economy as a whole.
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We work together every damn day. --Jon Stewart
My local bank is paying 0.22% on my money markets when they used to pay 6.5%. ING is paying 0.83% on my money there when they used to pay just over 8%. I am getting about 3.5% on 1 year municipal bonds that I have in my state and consider the interest is tax free that works out to about an equlivant of 5% return. Municipal bonds not too bad for these times. Pretty much we are otherwise holding somewhat tight on our $$$ at this time even with the low interest returns from our banks.
Now for commercial lease space real estate that we have, even with with 20% vacancy, we are getting about 14% return. Used to get about 20% return. Alot better than what banks, bonds, and CD's offer now and a hell of alot safer that the stock market.
With developing commercial or residential paper lots, that we have sold to builders, we have at times made up to 38% return. We don't feel when the economy returns that we can make as much as that anynmore,but feel we can make returns in the high 20% to low 30% range.
We're not making as much money now as we were in the early 2000's, but we have ramped up buying land since the beginning of 2007 for future sale or development.
Regardless of who gets elected (and we don't have any faith in either candidate) we feel this economy will turn around as it always has.
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