was something you could afford to do?
|Saving for a rainy day no more.|
When the Federal Reserve put its policy for a 0% interest rate into effect- it made it cheap and easy for the big banks and mega-corporations to borrow -all at the expense of every one else.
Since the 1960's the Fed funds rate was over 5% so you could actually make money on your savings account and other low risk investments like CD's. If you were uncomfortable gambling in casino's at least the Federal Reserve didn't stand in the way,and savers could get a decent return on their investments.
Those days seem to be long gone with the funds rate near zero. Banks are using their cheap and easy access to the Fed to borrow cheap and to lend high. They are also borrowing and investing in global stock markets. The two biggest banks in the U.S. give depositors merely a place in the bank’s digital vault and pay almost no interest.
Since the Federal Reserve is punishing savers while it rewards massive debtors there is very little incentive for people to save. Basically all the banks give you in return for letting them use your money is a parking spot in their vault.
The annual percentage yield is 0.05%. In other words, if you had $10,000 saved in Bank of America in this savings account you would end up with $50 after one year. At the same time the average credit card rate is over 14 percent and mortgage rates are still above 5 percent. This margin is enormous and it is little wonder why banks are doing so well while many Americans are struggling financially. Bank of America isn’t the only one offering this cheap bastard rate.
JP Morgan Chase offers the same rates. After taking over Washington Mutual with free checking they are now charging customers with less than $5,000 or other caveats a $10 or higher monthly service fee. There goes that $50 assuming you even have $10,000 to begin with.
Today 1 out of 3 Americans haven't got a pot to piss in- let alone a savings account. Remember the lie we were told that the bailouts were necessary to protect the American people? The bailouts were nothing more than a way to let the banks pick the pockets of Joe consumer before raising rates on his charge card, then lowering his available credit, before finally kicking him out of his home.
The Federal Reserve is herding the sheep away from saving. They give the sheep only two options, either spend what little you have or risk it in the schizophrenic stock market-which by the way is over valued- and headed for a cliff.
The Federal Reserve is over printing money- banking on keeping people either spending or investing it in the stock market in order to create inflation to devalue our current debts.
Debts that they helped create and you didn't.
They need to clear the path of the old debt garbage pile- by sticking it-again-to the middle and lower classes with a lower savings rate and higher inflation.
They are attempting to shrink the debt through accounting voodoo. When the dollar is worth less so is the debt. And so is your paycheck.
|You Cheap Bastards.|