teachercd Posted February 22, 2021 Share Posted February 22, 2021 Why would anyone be against low interest rates? Everyone wins. Link to comment
Archy1221 Posted February 22, 2021 Share Posted February 22, 2021 5 minutes ago, knapplc said: Exactly. What trumpets would have us believe is that it was terrible under President Obama, and magically good under trump. It wasn't. First off, I don’t believe a musical instrument thinks anything . Second, actual human people, at least the smart ones anyways, know the economy recovered under Obama as it always does, just should have happened faster with a competent person in charge 1 Link to comment
ColoradoHusk Posted February 22, 2021 Share Posted February 22, 2021 5 minutes ago, teachercd said: Why would anyone be against low interest rates? Everyone wins. Savers, debt investors, and lenders lose out on low interest rates, while borrowers and equity investors benefit. 1 Link to comment
ZRod Posted February 22, 2021 Share Posted February 22, 2021 5 minutes ago, teachercd said: Why would anyone be against low interest rates? Everyone wins. Because it promotes saving and is a less risky investment than the stock market. You will pay more interest on a mortgage, but your savings account is doing good too instead of the chump change we get these days. Link to comment
BigRedBuster Posted February 22, 2021 Share Posted February 22, 2021 Trump hates low interest rates Quote NEW YORK (Reuters) - Republican White House contender Donald Trump accused the U.S. Federal Reserve on Tuesday of keeping interest rates low at the bidding of Democratic President Barack Obama. Trump LOVES low interest rates Quote President Donald Trump on Tuesday tweeted that the US should accept the "gift" of negative interest rates, joining other countries that already have them. "As long as other countries are receiving the benefits of Negative Rates, the USA should also accept the 'GIFT'. Big numbers!" Trump tweeted. He can't make up his mind. Quote (Bloomberg) -- Donald Trump the presidential candidate denounced the Federal Reserve’s promotion of low interest rates as feeding a risky economic bubble. Now in the White House, regularly celebrating the stock market’s advances, he’s had a change of heart. “I do like a low-interest-rate policy, I must be honest with you,” Trump told the Wall Street Journal in April, less than three months after Read more at: https://www.bloombergquint.com/uselections/trump-hated-low-interest-rates-then-he-became-president Copyright © BloombergQuint Link to comment
knapplc Posted February 22, 2021 Share Posted February 22, 2021 1 minute ago, Archy1221 said: First off, I don’t believe a musical instrument thinks anything . Second, actual human people, at least the smart ones anyways, know the economy recovered under Obama as it always does, just should have happened faster with a competent person in charge And yet, with trumpets' allegedly competent person in charge, the rate of growth was the same as under President Obama. So the myth that trump is some magical businessman should be going away in light of the data. 2 Link to comment
Archy1221 Posted February 22, 2021 Share Posted February 22, 2021 7 minutes ago, ColoradoHusk said: Savers, debt investors, and lenders lose out on low interest rates, while borrowers and equity investors benefit. Not necessarily always the case 1 Link to comment
ZRod Posted February 22, 2021 Share Posted February 22, 2021 4 minutes ago, knapplc said: And yet, with trumpets' allegedly competent person in charge, the rate of growth was the same as under President Obama. So the myth that trump is some magical businessman should be going away in light of the data. While I wasn't in favor of the tax cuts without any budget cuts, there maybe some merit to a discussion that they juiced the economy and sustained the Obama era growth longer than it would have without them. Link to comment
Archy1221 Posted February 22, 2021 Share Posted February 22, 2021 6 minutes ago, knapplc said: And yet, with trumpets' allegedly competent person in charge, the rate of growth was the same as under President Obama. So the myth that trump is some magical businessman should be going away in light of the data. Why do you keep talking about musical instruments? 1 Link to comment
teachercd Posted February 22, 2021 Share Posted February 22, 2021 15 minutes ago, ColoradoHusk said: Savers, debt investors, and lenders lose out on low interest rates, while borrowers and equity investors benefit. But you would think lower rates would mean more people taking out loans. Link to comment
ColoradoHusk Posted February 22, 2021 Share Posted February 22, 2021 1 minute ago, teachercd said: But you would think lower rates would mean more people taking out loans. Potentially, but if I am a lender, I would prefer to get higher interest rates for using my $. Link to comment
Enhance Posted February 22, 2021 Share Posted February 22, 2021 11 minutes ago, teachercd said: But you would think lower rates would mean more people taking out loans. In the fall, I remember reading some investigative reports that found despite low interest rates it was actually harder for a lot of people to secure loans. Banks were often requiring more stringent financial checks, requiring higher down payments, and/or adjusting what they were willing to lend someone on the fly. So, in theory, it's a great time to be a borrower, but the lenders have some clenched rear-ends. Link to comment
teachercd Posted February 22, 2021 Share Posted February 22, 2021 8 minutes ago, ColoradoHusk said: Potentially, but if I am a lender, I would prefer to get higher interest rates for using my $. You probably would not even have free suckers for kids at your bank! Link to comment
BigRedBuster Posted February 22, 2021 Share Posted February 22, 2021 9 minutes ago, teachercd said: But you would think lower rates would mean more people taking out loans. 5 minutes ago, ColoradoHusk said: Potentially, but if I am a lender, I would prefer to get higher interest rates for using my $. It's not exactly that simple, but ColoradoHusk is somewhat correct. For instance, when the banks were asked to function as the lenders for the first PPP loans, they hated it because the interest rate was so low they weren't making anything off of it. 1 Link to comment
BigRedBuster Posted February 22, 2021 Share Posted February 22, 2021 1 hour ago, Archy1221 said: Record low unemployment for minority communities, actual real wage growth, lowering total unemployment to under full employment, consumer sentiment increase, all happening under Trump while rates were increasing. I'm still laughing that you fall for Trump's BS over this stuff. 1 Link to comment
Recommended Posts