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Yay! My online savings earn such low rates, I’m better off spending everything on merde I don’t need! Yay!
Oh, isn’t that how we got into this problem in the first place?
Get out there and SHOP people!!! Prices are falling; kinda like Walmart too over the rest of the country!! Shop now; we won’t be able to in a week or two.
Ask not what your country can do for you; ask what you can buy for your country… Kinda sad how far we’ve fallen eh?
Exactly the wrong approach the government should take. Raising rates is the only way to recover all that lost capital.
Iz we rich again yet?
This is what Japan did. They had an IBLR of 0% for something like 8 years.
Is anyone going to think of the possibility that this kind of thing scares the crap out of consumers and so they save everything and stop shopping? We need some kind of last ditch extreme economic lifeline that exudes sunny confidence.
The gesture of moving to 0% might frighten somebody into saving for a bit, but the reality of 0% policy removes meaningful savings incentive. They’re trying to prop up unrealistic asset values a biiit longer, on the backs of savers.
We’re well down the rabbit hole of price uncertainty methinks.
I CAN HAZ MORE GUAGE NOW?
Goodbye, savings.
@8
When you’re in dire fear of losing your job, you don’t need interest to motivate you to save. People will quit buying things simply to make sure they have something to carry them through.
And yet, banks are still not lending.
Because they have no incentive to do so.
And nobody forcing them to.
Cheer up! Eventually the Fed will have to turn to its “quantitative easing” or whatever and bread will cost 100,000 deutschemark! Or was that the WEIMAR REPUBLIC? I can’t even tell anymore…
@11, they won’t be saving either. They’re going to be paying debt off and making sure they make house/car payments. What little discretionary income is left might/might not be saved, but there would be little reason to save it anyways.
Besides, it still doesn’t make sense. Raise interest rates to encourage saving, temporarily repeal the capital gains tax to encourage investment, and work on getting debts paid off (don’t forgive them, but don’t expect people to pay them on their old time schedule).
You can still get 7.5 percent at WSECU.
And credit cards at 10 percent.
Credit unions rock!
(caveat – some federal credit unions have had to be bailed out as part of the current bailout package)
@ 13,
It’s ackshally the Papiermark:
http://en.wikipedia.org/wiki/German_Papi…
“the name is used for the banknotes issued during the hyperinflation in Germany of 1922 and especially 1923, which was a result of the Germans’ decision to pay their war debt by printing banknotes.”
Well I certainly can’t see history repeating itself there, no siireee!