How did this country end up in the crapper? (Interest rates)

[JD10367]

Not intending this to be a political discussion bound for the Shithole, so I'm not going to speak of either political party (although I'm sure it will come to that soon enough, and be whisked away to that section of the site).

A few years back--not 30, or 25 years, even, I'm talking maybe 5--we used to put some of our savings into CDs. A thousand here, two thousand there. The rates were around 5-6%.

Then, only a few years later--maybe 2 or 3 years back--the rates dropped drastically, to 2.5-3%. I decided it wasn't worth tying up the money, so I just put it in a savings account.

Well, today, I decided to check on CD rates for shits and giggles, because my wife had a fun day at the casino and won $1000. What do I find? CD rates of 0.25-0.75%. But wait! If you're a member of the bank, you get a whopping 1%!! And that was on a 3-year CD! Gee, let me run to lock up my thousand bucks for THREE YEARS just so I can earn a whopping TEN BUCKS!

What the **** has happened to this country? No wonder people don't save money! Why bother? You save money, by the time you save it the inflation rate has actually made it worth less than when you put it in there! Remember the days of being a kid, 30 or 40 years ago, when you'd get your little "passbook savings" account and get, say, 16% interest on your money?

So we have banks giving us no money back on our investment with them, so they don't have any of our money, so to make money they charge us 18% (or even more) on our credit cards. We're not saving any money, and we're paying exorbitant interest rates.

This country is so ****ed.

[Bugeater]

Originally Posted by FAX

Have you guys tried purchasing something that "wasn't" made in China, lately?

It's not easy.

FAX

It's downright impossible if it's anything that has a circuit board in it.

[BigRedChief]

Originally Posted by FAX

Have you guys tried purchasing something that "wasn't" made in China, lately?

It's not easy.

FAX

Just purchased pizza and wings online.

[FAX]

The beautiful and witty Mrs. FAX once convinced me to accompany her to a place called "Bed, Bath, & Beyond" ... maybe you've heard of it.

Anyhow, those traitorous bastards offer nothing but Chinese-made items, apparently. I was, however, able to find a pencil eraser attachment that looked like Shrek that was made in the USA for $4.99.

FAX

[BigRedChief]

Originally Posted by Buck

How did this thread end up in the lounge? (DC)

Because its not degenerated into a right/left thingy and the conversation is civil.

[Bugeater]

Originally Posted by FAX

The beautiful and witty Mrs. FAX once convinced me to accompany her to a place called "Bed, Bath, & Beyond" ... maybe you've heard of it.

Anyhow, those traitorous bastards offer nothing but Chinese-made items, apparently. I was, however, able to find a pencil eraser attachment that looked like Shrek that was made in the USA for $4.99.

FAX

Did you buy it?

[FAX]

Originally Posted by Bugeater

Did you buy it?

No. Got a six-pack of those little guys at Wal-Mart for a dollar.

FAX

[R8RFAN]

Originally Posted by FAX

Have you guys tried purchasing something that "wasn't" made in China, lately?

It's not easy.

FAX

Damn right it's not easy...

But I refuse to buy any food I know is produced or raised in china.

[Lonewolf Ed]

Originally Posted by FAX

Have you guys tried purchasing something that "wasn't" made in China, lately?

It's not easy.

FAX

Hell, I just went to the Price Chopper last night and had to buy garlic powder. All three brands were Chinese! What happened to Gilroy, CA? That town is nothing but garlic. I fail to see how Chinese garlic, which has to pass through a CA port most likely, can be cheaper than garlic grown here. Sad, sad, sad.

[Saulbadguy]

China is awesome. Haters gonna hate.

[teedubya]

IN 2004, Silver was $4 an ounce. In Sept 2010, it was $17 an ounce... Now, its $29 an ounce. This is very telling of the value of the US dollar... and where it's headed.

[alnorth]

interest rates are not the sole determination of how we are doing. You could get pretty high double-digit interest in the 70's, but inflation was also massive so you weren't really gaining anything. Right now, inflation is pretty low and a ton of money has been dumped onto the economy by the feds in an attempt to prevent a depression.

This is a temporary few-year annoyance. It wont last forever, or even much longer. Interest rates will start coming up soon. (people who went all-in on bond funds thinking they are safe will probably get killed when that happens) Fortunately, I'm too young to care about CD's, and the stock market was very good to me in 2010.

[Bearcat2005]

When the FED monitizes the debt, interest rates are artifically decreased in an attempt to encourage spending based on no capital. One of the several problems with this is interest rates on any form of savings is diminished, thus trying to encourage you to spend.

[bevischief]

This is what happens when you are printing money like it is Monopoly money.

[KC native]

Blame Alan Greenspan. Low interest rates are probably one of the largest causes of the financial crisis of 2007-2009. He also made a radical departure from the Fed's usual mandates.

Flash back to the tech bubble. Everything was going great (at least on paper) and people were feeling rich. Well the bubble collapsed and Alan Greenspan decided to lower rates to bring up asset prices (the stock market). This was a monumental error and radical change. Traditionally the Fed only cared about price level stability (inflation) and full employment. Asset prices were ignored.

Now, under the Fed's new (and dumbfounded) third mandate which Bernanke buys into whole heartedly, asset prices must be subsidized by low interest rates.

[RJ]

Originally Posted by R8ers

Damn right it's not easy...

But I refuse to buy any food I know is produced or raised in china.

Same here. There's just something about Chinese food imports that bugs me. But I've mostly surrendered with non-food items.